6 Sales Negotiation Tips
Once you get there, a sales negotiation can be tough. You may have sent out sales letters or emails, made a phone call or two, presented your product or service to prospects and arrived here – negotiation time.
Negotiating in sales can be a daunting prospect, but if you can retain these 6 points you will be better armed to succeed.
1. Ask questions and listen
A sales negotiation is most definitely not a time for you to just talk about your product or service. It’s important to ask questions, involve your buyer and listen to their needs. Would you just talk ll the time during a regular conversation? No. So it’s the same here. Keep thinking while listening – how can you steer this negotiation into a win-win situation?
2. Do not negotiate one point at a time
It can be tempting to agree to a request (demand?) that your buyer places on you, once he/she has made it. But it’s important to have all issues laid out on the table before agreeing to anything. Examples might include payment terms, minimum order size, delivery delays, pricing (FOB, Ex Works, delivery included, etc.), after-sales service, staff training and so on.
3. Both sides can win a negotiation
A sales negotiation can conclude to both sides’ satisfaction. Indeed, this is the preferred outcome. Get out of your “them v us” mentality.
4. The buyer does not hold all the power
Sales and marketing is all about satisfying the customer’s needs (at a profit). This fundamental proposition implies that your buyer has a need. So, do they have all the power? Evidently not.
5. Price is not the only issue
Often, a seller will fear the price issue, dreading that a competitor might have a better price. But, of course, price is just one element of a negotiation towards a sale. Find out what all the issues are.
6. Stay calm
Your negotiation does not have to conclude today. If there are elements of a potential deal you’re not comfortable with, postpone. Go away, carry out your checks and come back another day. Remain courteous and return to negotiate at a later date.
Sales Negotiation Skills
Of course, it can take time to develop the skills to expertly carry out a sales negotiation that results in an outcome that makes both parties happy. With practice comes improvement. Review the whole of the Sales Process to put negotiation in its context.