Leading sales negotiations can be stressful for even the most seasoned professional. A delicate situation can either make or break a sale. With so much on the line, it’s natural that it could be nerve wracking. However, if you understand the dynamics surrounding sales negotiations, you’ll be better at leading them, so you can come up with a situation that is agreeable for all parties.
Here are some tips on how to lead sales negotiations.
When you go into sales negotiations, you need to have the right attitude. If you act fearful or desperate, your client will be able to see it and take advantage of it. You need to go in there mentally prepared, confident, and assertive so you can stand by your position firmly.
Objectives and Position
Speaking of your position, what is it? Where do you stand on the issue? What are your objectives when going into sales negotiations? Simply stating you want to close the deal isn’t good enough. You need to decide specifically what you want if you’re going to go after it.
Customer Wants and Position
Understanding your customer’s position wants and needs will help you negotiate a sale that is good for both of you. Does he want a lower price or does he want to lower the quantity? His position is based on his wants and needs. Does he need to stay within his budget or does he need a product by a certain date? Is service, delivery, or price his priority during these sales negotiations?
You’ll both have your wants and needs, but you need to understand what box you’re both working in. This is the set of requirements that cannot budge so it isn’t worth negotiating about. If a customer needs a product by a certain date so it can make its flyer or sale, that’s a firm requirement. Instead of focusing your sales negotiations on the date, focus on the other options and alternatives that you can actually work with. If the budget requirement is firm and the client simply can’t pay what you’re asking for, work around it with payment plans or lower quantities. Abiding by these set-in-stone parameters will allow your sales negotiations to be more meaningful.
Before you go into any sales negotiations, you need to decide exactly what’s negotiable and what isn’t. Analyze the situation and see what can bring value to the customer without costing you too much money. You don’t want to negotiate your deal down to nothing. You should both be making compromises, not just you, so that everyone can be happy.
Sales negotiations don’t need to be stand offs. Working together in the negotiations can build trust and ensure that the process is moving forward. Brainstorm creative ideas and solutions together that can make the deal work.
When it comes to price, set it high and explain the value of the offering. If you start with a lower price, you won’t have much wiggle room when it comes to sales negotiations, which can make you lose in the end.
Any negotiation you offer should be reciprocated. Don’t offer anything without getting something in return. For example, if your client wants a lower price, give it to him only if he buys a higher quantity. If he wants a shorter lead-time, up the price to make it possible.
You know what both of your wants and requirements are. If you’ve tried to come up with alternatives and you’ve brainstormed ideas but nothing’s working, know when to walk away. Sometimes, the deal just isn’t worth it.
If you have come to a negotiation, write it down in an agreement so it is binding. You don’t want to go through the trouble of sales negotiations just to have them back out of the deal.