There is a secret to making a profit when selling to lawyers.
My first job involved selling copiers on a 100% commission basis. If I sold a copier at cost, I worked for free. This only made sense if the sale helped me reach a bonus level, but that was rarely the case.
Now there were hundreds of small lawyers in my territory and they used a lot of small copiers. There was only one problem. Nearly every sale to a lawyer ended up as a no- or low-profit sale.
Competition was only on price. Lawyers commonly called 4 or 5 copier companies for a demonstration and bid. They never accepted any first bid. They knew perfectly well, that the profit margin was 40% or more on the list price.
They laughed at a 20% discount, they scowled at a 30% discount, kindly types accepted a 35% discount, but most wanted the machine at cost.
And the fact was, they could always get it. Somebody among the 4 or 5 competitors would always sell at cost.
I wasted so much time, I was ready to give up on even trying to sell to lawyers.
That was when I read an article talking about legal billing hours and hourly rates. A light went on.
During my next sales call with a lawyer, I cut right to the chase. Rather than play the discount game, I put my cards on the table.
“If you are like most lawyers, you expect a 35-40% discount. I am not going to give it to you.”
“If that’s what you really want, I can give you the names of 4 or 5 companies that will give it to you – though I am never sure how they stay in business that way.”
“Of course you will need to meet them all and play them off each other, but you will certainly succeed.”
“I just always wonder how lawyers who can bill clients $200-300 per hour can afford to spend six to eight hours trying to save $600 on a copier.”
“If you’re interested, I will give you a 25% discount to close the deal right now. That means I make $300 on the sale. It means I will come back and train you and your staff. It means I may still be employed in this job if you have a problem in 2 years. Otherwise, I can give you the list of competitors and get on my way.”
It was amazing how well it worked. That direct no-bullshit speech won me immediate closure on 50-60% of the lawyer sales calls.
They said yes or they said no in under 5 minutes.
Lawyers like to be reminded of how valuable their time is.
This was 30 years ago. I wonder if it would still work.