Sample frameDay 204·Sales · Motion

Good morning. Some of your buyers don't want a salesperson. They want a price and a date.

Sales.

Transactional Selling

5 min read·Apply by lunch

The question

Take the largest deal on your desk this morning: if the buyer arrived holding a written specification and has asked you about nothing but price, terms and lead time since, what exactly did the discovery call, the demo and the three follow-ups add that they'd have paid for?

The idea

Neil Rackham, the research psychologist behind the Huthwaite studies that produced SPIN Selling, wrote Rethinking the Sales Force (1999) with John DeVincentis, who had led McKinsey's sales force and channel management practice. Their most uncomfortable claim isn't about selling better. It's that for a good many of your buyers the selling itself is a cost they're carrying and would rather not. Rackham and DeVincentis sort buyers by where they locate the value. Intrinsic-value buyers find it in the product: they already know what they need and how they'll use it, so the discovery, the demo and the relationship-building are overhead wrapped around something they'd have bought anyway. Extrinsic-value buyers find it outside the product, in the advice and the work of shaping an answer, and they'll pay properly for that. The response to the first group isn't to sell harder, or to sell more consultatively — it's to take selling out of the transaction until what's left is cheap, fast and easy to buy. Rackham and DeVincentis called that transactional selling, and treated it as a discipline rather than a defeat. The trap is treating every deal as a chance to add value, when for a good half of them the value you add is a bill the buyer never ordered.

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