Viewing Posts for: Kimberly Dean
Better Sales Negotiations Go Step by Step
Sales negotiations don’t have to be stressful, contentious affairs. Yes, there’s a lot riding on the outcome of a sales negotiation. Just think of it as one more chance to uncover opportunities to provide value to the customer.
The secret to successful sales negotiations is all based on knowing what the customer is trying to accomplish, converting demands into needs, and then demonstrating and justifying your value.
Richardson teaches the following sales negotiation framework to help sales professionals to structure their dialogue with customers:
Preparation for the Negotiation — It all begins by planning the strategy and tactics, including bottom-line terms, to achieve the maximum outcome that meets the needs of both parties. Opening the Negotiation — The sales professional should set the stage and lay out terms at the outset. Counter-opening — This step draws out the customer’s opening terms and demands in order to maintain control and avoid negotiating elements in a piece-meal fashion. Converting Demands to Needs — The customer’s real requirements may not surface without probing more deeply to convert demands to needs and gaining insight into their true agenda. Value Justification and Concessions — At this point, sales professionals need to protect essential terms by trading expendables, positioning value to persuade the customer that it is worthwhile to make concessions, and trading concessions to achieve essentials. Closing the Negotiation — The last step is to maintain the momentum » Continue Reading.
Are You Caught in a Negotiating Trap?
Here’s a common scenario: You’ve just presented your truly tailored, well researched, totally relevant proposal. The customer, who had been nodding in agreement all along, now has a strange look on her face. The change happened the minute you mentioned price.
She says your price is too high.
It’s your move. What do you do? If you start negotiating on price, trying to find a figure that she’ll accept without hurting your business, you’ve just landed in a negotiation trap.
The trap is in starting to negotiate too early, before justifying your value. This is how a lot of money is lost, either by discounting too early or by leaving money on the table.
Getting pushback on price is a common occurrence for sales professionals. That’s why it’s important to recognize the negotiation trap and learn how to avoid it.
First, don’t start off trying to resolve any immediate price objections; focus instead on justifying the value of your proposal.
Consider the objection as an opportunity to learn more about the customer’s situation. Where does the objection come from? Is the customer at the end of a budget cycle? Would splitting payment over two cycles be workable? Or, would changing delivery options add value?
The point is, you need to understand what the customer is trying to accomplish so that you can determine which terms are most important. This can be more » Continue Reading.