Inside Sales Training – Negotiation
The next stages – Negotiation…Even if the buyers initially accept all the terms, there is always a temptation for them to squeeze a bit more from us – Buyers Ego or their perception that we will keep some buffer as discounts and will give only if they ask us. Handling this well will get us the contract.
There will be some genuine negotiations that may be due to:
- Some budgetary issues as they might not have factored your solution as part of their last years request for budget
- They might have over run their budget on some other project and would need additional money to finish that one which they would like to explore if they can get some additional cash by asking you to discount.
- This can be the terms & conditions, payment terms, delivery dates, extended warranty or legal terms to name a few.
So, we can expect the prospect to request us to make some change in the initial proposal that we would be sending. The most dreaded objection being “Your price is too high” will almost always stare at us. If we sell value and thought leadership from the first touch point onwards, we can get the prospect focus more on the value they would get and not necessarily at the price. We can get them so excited that they want you to implement at all cost and will go all out to defend your proposal to the other stakeholders within the organization if they would object to any of the terms and would advice them not to disturb us as we might say no. If the prospect will still negotiate, the best way to respond to that will have to be on value. It will be a weak and an easy way for the prospects to beat us down if we would take the router of cost of producing the solution or the product for us to be high. It would be very salesy if we would say that we would provide the best service as no other company will say that they will not provide the best service.
Spend a good amount of time in how you can build value from the start. There will many industries where the competition will be very high. This will give a chance for the buyers to behave like your products or services are commodities. They will unfairly compare you with the smallest company and will ask you to match their prices. A well laid out plan of engagement with the prospects will help you make more money out of the same sale.
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