Much has been written about pain being the primary motivation factor for people to make decisions.  As we uncover the layers of intellectual protection that surrounds the pain, we discover that having a problem is not always enough to get people moving.  Some people will just sit in it… and do nothing!  To break the inertia and get them moving towards a decision requires more work to be done.

Sizing the Problem

We need to understand the severity of problems and find a way size them in a common format.  It helps us guide them to the solution for their problem.  To find the appropriate level of the solution requires that we determine the actual problem cost.  We have to translate every problem they discover into terms of numbers.  Whether the costs are hard or soft dollars doesn't matter.  We're looking to determine the true cost of the problem.

When discussing the problem, we're going to do the opposite of what’s expected.   Ask for minimum rather than maximum costs.  I know this sounds strange but it's easier to get the truth.  Prospective customers aren't used to being asked about minimums.  Most of them have been low-balling us in the past.  The reality is if a case can be made on the minimum numbers, it then becomes a much easier decision when using the real numbers!

True Problem Cost Equation

To help get to the true cost of the problem, I've come up with a very simple formula I call the True Problem Cost Equation.  It helps me understand the magnitude of the problems my prospective customer is experiencing.  It looks like this… 

TPC = PE + FS + C + EC

Where…

TPC      is True Problem Cost and it’s the sum of the following factors:

PE        is the dollar cost of any previous expense related to the problem;

FS        is the dollar cost (estimated) of any future savings by solving the problem;

C          is the dollar cost (estimated) of the value for the convenience of not having to              spend time or effort on the problem;

EC        is the dollar cost (estimated) of the value related to the emotional consideration             for the pleasure gained or pain that is avoided with the solution to the problem.

The objective at this point is to break each one of these factors down as finely as possible for both hard and soft dollar costs.  The hard costs are easier to determine because there is usually an accounting number for the actual dollars spent.  But the soft costs, although more difficult to uncover, can be much greater amounts.  It’s the value/cost they decide it would be worth to not have to deal with the situation again from an emotional point of view.

Do the opposite of what’s expected by focusing on determining the minimum amount for any of the components.  Amateur sales people strive to get the maximum values and in so doing, the prospective customer rarely believes the cost justification arguments because they believe it’s an overstated exaggeration!  The use of minimum numbers has the opposite effect.  It’s also much easier to get people to agree to minimums versus maximums.  As the amounts start to accumulate, the prospective customer begins thinking the problem is much more serious than they first thought since they’ve probably been underestimating all of the amounts!

Using this formula, you can get your prospective customer to break down their problems to help determine their total cost.  This is why using minimum numbers is so effective.  People will give you the minimum numbers because they believe these numbers won’t indicate the true severity of the problem and they won’t feel compelled to buy or pay too much.  But when we add all these “minimums” together, we usually discover a large number!  And even then it’s usually understated.  Suddenly your prospective customer begins thinking “this problem is huge… it’s far larger than I’ve indicated.”

When you're just trying to determine the minimum cost or value for the "Convenience" and "Emotional Considerations" factors, people can and will come up with numbers, particularly if you don't move past this point until they do.  Just tell them there must be some dollar value associated with it or some price they’d pay to make it go away.  Hold your ground and wait for an answer.

Now Magnify It!

Once you believe you’ve got an accurate picture of the true problem cost, there’s one more item that can make all the difference in the world in getting someone to make a decision.  Find out the consequence of doing nothing!  Making a decision to change is risky.  It’s uncomfortable.  There may not be a consequence of doing nothing.  If that’s the case, the sooner you find out the better.  Move on to the next opportunity.

Doing nothing may not have an obvious cost to them and it may seem like the easier path to take.  Ask them what happens if they choose to do nothing?  When will the consequence occur?  What happens after that?

Understanding the consequence of doing nothing becomes the magnifier for getting people working on their problems.  Not only is all the intellectual protection removed that has kept them from feeling the pain, now the consequence of doing nothing is exposed.  Simply put -- When people realize there is a consequence for deciding to do nothing, it becomes the magnifier of the pain!  If there is a consequence to doing nothing, it becomes far more difficult to do nothing.

Our job is not to just get people moving to discover problems and pain.  Our job is to help them discover there may also be a solution to their problems.