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Hello fellow Sales Entrepreneurs.
The passage of time continues to march forward at a relentless
pace. It’s almost the close of Quarter 1.
It’s scary how the calendar advances with terrifying speed. Hence,
it’s time to be planning your destinations for Quarter 2.
Don’t let it evaporate without a sense of accomplishment and success.
Success is arriving at your destination (your goals), happiness
is enjoying it after you’ve arrived. Get what you want and want
what you get.
To that end, this newsletter focuses on one of the most feared
aspects of selling; negotiation.
The very thought of it seems to paralyzes any rational thinking.
Hence, we often succumb to the outlandish demands of the
customer as we vehemently fight for the sale at all costs. Well,
enough of not enough. It’s time to focus on win-win.
The first step is to understand when to negotiate. Do not
negotiate with a potential customer until they have expressed a
desire or an interest to do business with you.
Why would you discuss price or terms with an undecided customer? Don’t.
A common mistake is to enter into premature negotiation. If you do, the advantage
always goes to the customer. Customers often lure us into the price discussion
before we thoroughly understand their needs. Price is never their number one buying
criteria although they love to convince us it is. Price is usually number five or six
down their wish list. Customers will pay for value.
Be sure to complete your discovery and present a value based
solution. If they do bring up price (they usually do) then
acknowledge their concern and put it in the parking lot. Simply
say “I understand price is important but let’s temporarily put
it aside and continue to explore the potential of us doing business
together. If it appears that I have something of value, I would be happy
to discuss our competitive pricing. Is that okay?” The customer will
usually accept your suggestion. Don’t forget, they are hopeful that you
just might be in a position to offer a better mousetrap. Customers are
always looking for a competitive advantage.
The next step is to use a trial close to validate their
interest. Simply ask, “based on our discussion, would you be
interested in our offerings?” If yes, you have a willing
customer who will see your price as an investment rather than a
cost. If no, then continue to probe for potential hot buttons.
Banish the feature-dump. Understanding their hot buttons will
allow you to present a value based solution which they will pay
a competitive price for. Know this; competitive pricing does not
mean the cheapest. It means charging up to 10% – 12% more.
Remember, only negotiate price with a willing customer.
Once you become comfortable with this strategy your productivity
will soar. You will close better deals for you, your employer,
and your customer. And with that comes a deeper commitment to
follow through on your promises.
Your score card is a satisfied customer who invites repeat business
coupled with a positive word of mouth.
Make it a great Quarter 2.
To learn about our one day sales negotiation workshop, contact
us at info@spectrain.com.
I leave you with this gem: If you know what you want…..you can
say “no” to what you don’t want.
Cheers,
Tim Breithaupt
Trainer / Speaker / Author
Spectrum Training Solutions Inc.
Ph: (403) 269-2626
Fax: (403) 269-3483
www.spectrain.com
tim@spectrain.com
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