Inside Our Head

Negotiate Price Late in the Sales Process, Never Early

There is no reason to discuss price until buying desire has been aroused. If you customer doesn't need it, any price is too high. Discuss price only when buyers recognize what they need and why the need it. Lowering price does not necessarily make a product or service more attractive to a buyer, in fact it rarely does.

Carefully Consider the Consequences of Any Concession You Make

Without profit there is no purpose. Therefore, carefully analyze each concession before making a commitment. Any concession will become an expectation later on. Don't give away the store or that's all you wind up doing, all the time.

Don't Propose a Solution with an Already Discounted Price

Purchasing agents are often evaluated by how much they save the company. If you cut price right away in your initial proposal you may actually be doing that purchasing agent a disservice. If you don't start with significant gross profit built into the deal you don't leave yourself any negotiating room. There are exceptions of course. If you get into a deal late, you may have to shoot your best price just to be considered.

Be Patient

Relax! Slow down! If the prospect wasn't interested, you wouldn't be negotiating. Take the time necessary to achieve a true win-win.

Never Give a Concession Without Getting One in Return

To a prospect asking for a lower price you might reply with a willingness to discount if the prospect will agree to purchase several more units during a specified time. The prospect wins by obtaining a lower unit price. You win by increasing the size of the sale. (Discuss other real life requests prospects make and how you might respond by asking for a concession.)

Throughout the first five steps of the buy-learning process, your prospects' focus has been on achieving value. They have examined their problems, determined the problems' seriousness, and examined the alternatives. They have a well-defined expectation of value because their attention has been on the benefits they will enjoy by purchasing. Now, in Step 6, Commitment, the focus changes from the value of your solution to its cost.

If your negotiation is occurring at the proper time, that is, after the two of you have completed the first five steps in the process, then there is good news: your prospect wants to buy from you! However, don't start computing your commission. The prospect will usually want more concessions. This is when real negotiating begins. Customers negotiate because they know that getting a lower price or other concession is likely at this stage. They do it because it works! But there are other reasons prospects negotiate. If you wish to negotiate successfully, you will want to understand the motivations of the other party.

People negotiate hard when their jobs are on the line.
Buyers are often (always?!) evaluated by their ability to save the company money.
CEOs and Core-level decisionmakers are evaluated on much more than price.
Example: efficiency of operations and return on investment. Consequently they negotiate differently, focusing on a variety of items.
Some buyers negotiate vigorously if:
They want to be admired.
They enjoy being tough.

It is strongly recommended that any negotiating you engage be done in good faith, with the objective of achieving a win-win, even if you are negotiating with Attila the Hun. You can learn lots of "tricks" from negotiating books. They may work short-term. But in the long run they work against you.

Obtaining commitment from your prospect is a matter of working through the negotiating process so that everyone wins.

For more specific ways of accomplishing this, please attend one of our Sales Seminars!

If you have successfully applied Customer-Focused Selling concepts, up to and including the negotiation of terms, getting a buyer's commitment should come naturally. You have earned your customer's trust, helped with recognition of needs, and proved that your solution is best.

As mentioned earlier, your goal is to open the relationship, not to close the sale.

In the Customer-Focused Selling process, I refer to the abilities needed to ask for the agreed-on order as "commitment skills," not "closing skills."

Closing skills attempt to get the buyers to commit.

Commitment skills are different because there is MUTUAL COMMITMENT at the point of sale: the customer commits to you, and you commit to the customer.

In the final two roles you play in the process--Teacher and Farmer--are focused on the commitments you make to the customer.

Here are a few non-manipulative ways to ask for commitment:

Ask, "What should be our next step?"

This question is most appropriate for a buyer who has a clear direction of how events should unfold, a lion personality type. This is a simple, honest question that asks your buyer to suggest a commitment to you.

Describe in detail what happens between now and installation, delivery, or commencement of service. If you have an implementation plan, now is the time to share it.

Then, simply ask, "Does that sound acceptable to you?"

Ask, "Would you like to give us a try?"

This commitment question is soft, yet direct, because it asks for a "Yes" or "No" answer.

By now you have come a long way with your prospect. The commitment techniques above are often successful. However, some buyers may still be reluctant. If this is the case, you must deal with the salesperson's old nemesis--objections.

To learn more about these sales techniques and many others, join us at our next sales seminar at the Peppermill Hotel in Reno, Nevada.

Please note, seating at our sales training courses is limited, and the seminars fill-up quickly.

Cost: 1 Manager - $1,695 each
2 or more (same company) - $1,550 each

Includes continental breakfast and lunch plus morning and afternoon breaks. Each participant receives a 200-page participant guide. Walk away with the tools you need to implement immediately, including Select-Quest Interviewing System, Mutual Commitment Performance Management Tool, Tactical Map planning guide, and much more!

We offer a money back guarantee if you are not 100% satisfied with the training.

Click here to reserve your seat today.