Final answer:
Salespeople determine a potential buyer's authority and ability to pay through qualifying questions, analyzing financial statements, and verifying credibility. These methods help them assess the buyer's qualifications and make informed decisions.
Step-by-step explanation:
Salespeople use various methods to determine if a potential buyer has the authority to buy and the ability to pay. Some common techniques include:
- Qualifying questions: Salespeople may ask questions to assess the buyer's role in the organization and their decision-making power. For example, they may inquire about the buyer's position, department, and budget authority.
- Financial statements: Salespeople may request financial information, such as income statements or credit reports, to evaluate the buyer's ability to pay. This helps ensure the buyer has the necessary funds.
- Third-party verification: Salespeople may seek confirmation from other sources, such as references or credit agencies, to validate the buyer's credibility and ability to make purchases.
By using these methods, salespeople can make informed assessments about a potential buyer's authority and ability to pay, which helps them determine whether to proceed with the sales process.