4-10-2012
As salespeople, we tend to believe that the biggest obstacle that prevents us from closing the deal is price. Price is always on the table; though rarely is it the real issue. In fact, most price concessions are initiated by the salesperson, not the buyer. What does the buyer want in a negotiation? The best deal. How do you signal that this is the best deal? By being non-negotiable. People love to buy; they don?t want to be sold. So by being non-negotiable it entices them to buy.
Why do salespeople default to lowering their price at the first sign of resistance? Fear of losing the deal; fear of losing the customer. They don?t fully believe in the value of what they have to offer. Ask yourself, why is it that some salespeople are able to bring in the order at a premium price, while others on your team are always looking for discounts? It is all about belief, what the mind believes is directly linked to what one achieves. When you establish a fair market price, and stick to it, only then will people believe they are getting the best deal. If you aren?t prepared to defend your price, your customers will lose respect for both you, and your medium.
Negotiating is a game. To close deals you must know how to play the game by recognizing the moves of the other side. Rather than lowering your price, learn how to successfully navigate these common negotiating tactics:
The Shocker: When the buyer says, ?Wow that is a lot more expensive than I was expecting.?
The seller?s response should be silence. Say nothing. Just smile and nod your head slightly, while maintaining eye contact. (This is a test, never respond unless it?s a direct question.) If they repeat it again, which is very likely, you should still say nothing. Silence is golden.
The Doubter: When the buyer asks ?Is this the best you can do??
The seller?s response is ?Yes.? Again the buyer is trying to squeeze you to see if you?ll budge on price. Redirect if necessary, to ask what exactly do they mean by this question? Often just doing that makes it go away. Buyers went through negotiating classes, too and they just repeat things they were taught to say without any real motivation.
The Bluff: When the buyer says ?I can get this for less at fill-in-the-blank.? (One of your competitors)
The seller?s response should be ?I?m not surprised? or ?Yes, I would expect that to be the case.? You are agreeing with them, which is always disarming. And they are bluffing, if they wanted to deal with your competitor then why are they talking to you?
This is also a time to remind the buyer of your unique qualifications. Get them to agree with you now on points you?ve previously established as to why they should do business with you. Let the buyer ask you to compare apples to oranges and proceed to list all the things that differentiate you from the competition.
The Take it or leave it: When the buyer says ?I want to do business with you, but all I can spend is??
Seller?don?t you dare take their lowball offer. You?ve already gotten a commitment here by them stating they want to do business with you, so you?re halfway home. Don?t give in now. This is when you need to be empathetic and say ?I understand, but in order for us to achieve your goals we can?t compromise the marketing plan. I would rather walk away from this deal, then to dilute its effectiveness by altering the package. It stands as is.?
Then gather your papers together, thank them for their time and prepare to leave. TRY IT and then report back to me what happens next. I bet you don?t get out the door without the buyer calling you back to the table.
The savviest negotiators know that negotiating is a game that they can control by anticipating the buyer?s reaction. They appear unflustered by the whole situation and take nothing personally. They are always ready to pass on the deal. Because they seem unmoved and remain calm they are able to unnerve their less experienced counterparts.
So don?t let those ridiculous counter offers bother you?recognize the tactics for what they are and smile with the knowledge that time, and power, is on your side. Use it to your best advantage.
For more sales articles from Theresa Go HERE
You may also like sales articles from Sean Luce HERE
Theresa Merrill is the Director of Business Development for Anovick Associates. She has more than 20 years of sales and marketing experience in NY, Boston and Atlanta working for Katz Communications, CBS, Tribune and Cablevision and can be reached at 201.444.2991 or by e-mail merrill.theresa@gmail.com
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