When it comes to making a purchase, many potential clients believe that the only grounds on which they can successfully negotiate a better deal is price. The truth, however, is that if you want to remain successful – especially in this economy – you’ll need to learn how to negotiate along an entirely different set of terms.

Realistically speaking, people want to believe they are helping themselves. Throughout the course of your meetings and phone calls you should have been gaining a better understanding of the troubles your potential client is having in his business. When he attempts to negotiate price, you should be prepared with a better response – one that does not damage your bottom line but does increase the value of your product to your client.

What does this mean to you in the long run? It means you’ll have a happier client, a happier wallet, and you’ll be able to remain consistent when it comes to the way you price your products and services – the latter being the most important. Always remember that your products are priced properly at the start for a reason. Don’t let anyone fool you into thinking otherwise. Instead, help them to find added benefit.

Sean

Sales Expert - Marketing Consultant – Motivational Speaker

I know that I tell you over and over again that you should be prepared for anything when you walk into a sales meeting but today I’m going to take part of that statement back.

When you go on a sales call you should NOT walk in prepared to negotiate on your price. Don’t even consider it before the meeting.

It is, of course, ok to consider it later on if it becomes absolutely necessary to making the sale but here’s the problem. The average salesman, upon deciding in advance to lower his price, will actually do so at some point during the meeting whether he is really pressed to do so or not. He already has the lower price in mind and he thinks it’ll drive the sale. Wrong.

The product you are offering is solid and valuable. Why do you need to discount it? No reason? I didn’t think so.

Besides, if you discount your products every time you make a sale you will end up taking away from your own commissions. Surprised by that? Don’t be. Did you really think your employer would want to give the discount out of his portion of the profit?

Negotiation is a great tool – when it’s appropriate. Be prepared to negotiate on other points (services, accomodations, etc) but don’t make a decreased price part of your thought process. Doing so will only hurt your bottom line.

Sean

Sales Expert - Marketing Consultant – Motivational Speaker

Yesterday I gave you 10 tips to help prepare you for the negotiation process, so today I’m going to take things a step further by giving you some main principles or goals you should be aiming to achieve throughout your meetings and presentations.

Follow these 9 rules and you’re guaranteed to make a more profitable sale:

1. Always aim to get more from your customer than you expect me might agree to. You’ll be surprised at what people will agree to if they’re presented with the opportunity. Not presenting additional options will only limit your sales;
2. Avoid price crumbling. Don’t just lower your price because your prospect complains that it is too high. You need to believe in the value of your product and if you’re too quick to lower your price your customer will wonder if your product is even worth paying for;
3. Don’t give away your concessions; and
4. Don’t minimize the value of the concessions held by your prospect;
5. Be willing to negotiate the variables (which, if you followed yesterday’s plan, you have identified in advance);
6. Be a bit miserly. Don’t give away huge discounts right off the top. As mentioned before, you need to believe in the value of your product. Avoid making price cuts as much as possible. If you do make a major price cut you should be cutting services and benefits as well.
7. Be conscious of timelines and make sure you set deadlines. Don’t let a prospect drag the decision making process out forever. Set a deadline and let him know that discounted prices won’t be available if he doesn’t make a decision by that time.
8. Visualise the big picture in advance. Can you see the sale successfully closing? Use that visualisation to encourage yourself as you negotiate your final agreement.
9. Be conscious of your own weaknesses. Is there a part of the sales process you aren’t very skilled at? Seek out the additional training you need OR partner with someone who can help you out in the areas in which you need it.

Let’s face it. If you’re in sales your ultimate goal is to make a profit so that you can stay in business, pay your bills, and support your family. You can’t negotiate away every penny of commission you might have earned just to make a prospect happy. If he’s not willing to pay for your products or services in the beginning, he’s not likely to be a very reliable client later on down the line.

Don’t despair if the negotiation process doesn’t go as well as you think it should have. In some cases, you’re better off moving on to someone who cares enough about his business to pay for the services he needs!

Sean

Sales Expert - Marketing Consultant – Motivational Speaker

So you’ve managed to land an appointment with the head decision maker at XYZ Coropration and you’ve spent hours preparing your sales presentation. What will you do if, at the end of your presentation, you present your price point and the decision maker decides he wants to negotiate. Will you be prepared or will you stumble over what you thought was a fair price model to begin with?

Before you head out to your meeting, take the time to consider the following strategies and tips:

• Prepare for and assess the objectives – your objectives in presenting and the objectives the decisio maker wishes to achieve by listening to you. Do you both have similar goals?
• Decide for yourself in which areas you are willing to be a bit flexible when it comes to the development of a contract or long-term business plan.
• Plan your approach in advance and be prepared to follow a relatively set sequence of events.
• Take the time to discuss your position with your prospect. You may both have different positions or issues but if you take the time to work through them you may find yourselves on common ground.
• Create a positive work environment. Don’t lock yourselves up in a small office for hours on end. Make it a lunch or dinner meeting or find some other welcoming yet neutral ground from which to work.
• Listen very carefully to everything your prospect says and be prepared to question anything and everything you don’t understand.
• Make your proposal and specify what you want or expect.
• Compromise, if necessary. Make sure that any compromise results in a win/win situation for both parties.
• You may need to bargain in order to come to a compromise. Ask for the things you want and be prepared to modify your expectations if need be.
• Never concede without a fair trade.

These negotiation tips will apply whether you’re the salesmen or the prospect. Learn to apply them in all areas of your life and you’ll be even better prepared when faced with any type of negotiation – whether in sales or not.

Sean

Sales Expert - Marketing Consultant – Motivational Speaker