Sales negotiation can be a source of dread for salespeople. It’s especially painful when a rep thinks they’ve closed a deal and then the prospect surprises them by wanting to “talk about the details.”
With the right sales negotiation strategy & sales negotiation training, even this part of the sales process can remain warm and result in a win-win outcome for all parties.
Here are 9 sales negotiation skills your salespeople need to master to avoid price concessions and protect your profit margins.
1. Talk to the Right People
Nothing is more disheartening than settling on a deal with someone, only to find out they don’t have the final say in the decision-making process.
Help your salespeople reduce the odds of this happening by coaching them how to identify and reach decision-makers early in the sales process.
2. Establish the Customer’s Pain
Prospects who understand their own pain will be more motivated to alleviate it, and less likely to push back on price.
Skilled sales professionals identify customer pain early, bring it to the prospect’s attention, and quantify its financial and emotional cost out loud to the prospect.
3. Build the Relationship
Buyers are far less likely to “play hardball” when they’re negotiating with someone they view as a trusted partner.
Teach your sales reps to establish trust and build the relationship early in the sales process to reduce negotiation friction later.
4. Quantify the Value
When a prospective client clearly understands the value of a solution, they are much more likely to be willing to pay what it’s worth.
Help your salespeople learn to clearly identify and, when possible, quantify the value of the solution as differentiated from competitors.
There are great questioning techniques to accomplish this, including the 3-deep strategy.
Using a 3-deep questioning strategy, the conversation with a prospect to quantify value might go something like this:
Sales Rep: So, you’re having delivery issues with your current supplier. How does that translate to your business?
Prospect: It’s delaying our delivery to hospitals and ambulance drivers who need and expect the products on time.
Sales Rep: What impact does that have on your efficiencies and bottom line?
Prospect: We spend a lot of time, energy, and money negotiating the returns and tracking down deliveries. It’s cutting into our profit margin substantially, not to mention it creates a ripple that ultimately affects patients.
Sales Rep: What would it mean to you to have guaranteed quality products delivered on time?
Prospect: We really want to partner with a high-quality company that can deliver on time, every time. We spent over $5,000 last year alone on issues relating to returns.
5. Know Your Bottom Line
Sometimes, following steps, one through four can eliminate the negotiation process altogether.
If the sale does go into a negotiation process, teach your reps to be thoroughly prepared by knowing in advance exactly how low they can go and still result in a win-win situation for all parties. This will ensure they don’t make promises in the heat of the moment that they later regret.
You can also motivate reps to avoid price concessions by the way you structure their sales compensation plan.
Source: brooksgroup.com
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