The Penalty Close is popular among salespeople. It comes in handy at one time or another. The idea is to let your prospect know that if they don’t buy now, there will be some type of penalty to making the purchase at a later date. It could also be used by letting the prospect know that the product or service may not be available at a later date.

Here are some examples of how the Penalty Close works:

• This is the last ruby ring we have in stock.
• The 50% off sale ends at the close of business today.
• This is a limited time offer.
• I have another customer who is also very interested and is coming in later today.

The key to the penalty close is that you are truthful. The technique should only be used if the penalty attached to not making a purchase at that moment is the truth. The quickest way to lose a customer is if they find out you have not been honest with them. Don’t run the risk of losing a prospect because you used the penalty close when there was no penalty.

That wraps up our review of different closing techniques. While they are all different, they also share some things in common. When it is time to close the sale, remember you have earned the right to ask for the sale. No matter what technique you choose, you must be confident enough in your presentation and relationship with your prospect to close the deal.

All of these techniques have different strengths and weaknesses depending on the situation but the real key is making them your own. Don’t be afraid to let your personality show as you are closing a sale and use your own words.

Keep this in mind, though. The better your relationship with your prospect, the easier it will be to close the sale. These closing techniques are important but the work you do throughout the selling process is just as important, if not, more important!

Happy Closing!

FINAO - Brad Huisken