3 reasons Warren Buffett thrives in a down economy
February 16, 2010 by Bob HillPosted in: closing, communication, customer loyalty, economy, sales management, Sales meeting ideas, Special Report - Sales & Marketing, training
Warren Buffett is one of the most successful entrepreneurs of all time. Here are three priceless sales takeaways from his keynote address at Berkshire Hathaway’s 2009 shareholder’s meeting:
- “If you need to use a computer or a calculator to figure it out, you probably shouldn’t buy it.” A lot of sales organizations are rethinking their message and peppering prospects with charts and graphs that demonstrate long-term ROI. But most prospects just want a plain-English explanation of how you can help them cut costs or increase profits. Break it down. Keep it simple — it’s the only way to keep buyers engaged.
- “You don’t want to be in a position where someone can pull the rug out from under you (or where you pull it out from under yourself).” Competitors are more aggressive than ever right now, eager for any chance to swoop in and steal away your buyers. Be sure salespeople maintain regular contact with customers, so issues are resolved quickly and they’re the first to know when someone else is trying to steal a customer’s business away.
- “You’re not there to change people.” The selling process should always be less about your products and services, and more about the buyer’s needs. Find out where the pain is, and offer solutions that alleviate that pain. Remember, it’s a buyer’s market. And most buyers are inclined to do business with the salesperson who best understands their needs and can help them overcome their challenges.
So what do you think? Is Buffett on target or preaching old-school tactics in a shifting market? Share your thoughts in the Comments Box below.
Source: “A Back to Basics Weekend With Warren Buffett,” by Andrew Ross Sorkin, New York Times
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Tags: business, buyers, CEO, closing, entrepeneur, sales, Warren Buffett
February 17th, 2010 at 11:27 am
Buffet is right. “Old school tactics” can be combined with the knowledge of understanding where the buyer is coming from. I’m a boomer often negotiating with Gen-Y and Gen-Xers. Time and again I’m told relationships don’t matter; only cost. And, time and again, many of those same buyers look to me when they need help because we’ve built a relationship based on trust, support, product knowledge and confidence that I will always follow through on my promises. Bottom line: I help make them look good.
February 17th, 2010 at 12:39 pm
What you inferred from the third point: “You’re not there to change people” is completely off base from what Buffet actually said. He was talking about owning stocks and said “When we own stock, we are not there to try and change people.” He was not talking in any way about the sales process.
February 17th, 2010 at 1:22 pm
Larry’s observation is true of all three points. Buffett was speaking of stock in each instance. Check the writer’s source: “A Back to Basics Weekend With Warren Buffett,” by Andrew Ross Sorkin, New York Times. Sorkin was on stage with Buffett asking the questions. Hill was in the audience writing down “takeaways”. But I’ll grant there is a bit of sales application to be found, if you dig.
February 17th, 2010 at 2:06 pm
To glean sales takeaways from stock purchase strategies is a stretch.
February 17th, 2010 at 5:17 pm
I have to disagree with Larry, Ray and Jay. Yes, the book was written in the context of stock purchase strategies, but look again at the text that is highlighted: all three are VERY applicable to today’s customer communications! 1. Keep your message simple and to the point. In today’s business environment, most biz owners (decision makers) are extremely busy. State your case succinctly and don’t put too much fluff & feathers in the message. 2. Stay in touch with your client base – they are ‘the horse you rode in on.’ Many business people seem to forget the value of a good referral network, but it can be one of the most effient forms of getting new business there is, IF it is managed correctly. Finally, #3. A salesperson CANNOT change a prospect. BUT a good salesperson can HELP the prospect decide that the product/service IS actually one that would be beneficial to the prospect. A book from about 25 years ago titled “Non-Manipulative Selling” (sorry, don’t have the authors’ names handy), was a God-send in helping me realize the truth in #3.
February 17th, 2010 at 5:32 pm
“Here are three priceless sales takeaways from his keynote address at Berkshire Hathaway’s 2009 shareholder’s meeting:”
Book? What book? The article only identified takeaways from Buffett’s keynote address. Did Buffett also write a book on sales approach? The connection is invisible.
But the book as your source is great! Better than stretching Buffett… misquoted is mistrusted.
February 24th, 2010 at 3:15 pm
I found all the comments above very instructive. I once heard a brilliant presenation asking a simple question: “are you dream focused or pain focused?” Understanding a prospect’s “dream” can be a very powerful thing and not often shared. When they share it with you it can be evidence of a deeper level of trust. What might happen if we helped them achieve something they want (either tangible or an “experiential”) vs. pain they wish to avoid?