While the hammer (the hard sell) at times may be the easiest way to go about a negotiation, it is often not the most effective. And you can't continue to rely on the old stand by, you know the one.....the "take away." So you need to have multiple sales negotiation tools in your sales negotiation tool box. Here are a few tips to help you fight off pricing pressure and help you maintain gross profit integrity and keep you smiling at your ATM machine!
Sales Negotiation Tip #1
Most sales people know they should never give something up without getting something in return. Heck, we don't work pro bono! The challenge however is figuring out what to ask for in return during a sales negotiation. Remember any reduction or discount you offer in your rate or pricing represents a transfer of profit from your company (and your pocket) to your client’s. So tip #1 is, ALWAYS make sure you get something in return for any concession that you make. Don't just give something up without getting something in return.
Sales Negotiation Tip #2
So what should I ask for in return during my sales negotiation and should I make any concessions? Good questions. I suggest you make a list of all of things you would love to have that your customer can give you. The longer the list the better. Here are a couple of quick sample ideas. Access to power (decision maker), quicker payment terms, business volume or exclusivity. I could go on and on and on. Brainstorm with your co-workers, you'll be amazed at what you come up with.
Sales Negotiation Tip # 3
Only negotiate with those who have the power and authority to commit and say yes. Far too often I see sales professionals negotiating with gatekeepers and other constituents who don't have the authority to commit or say yes. Only negotiate with those who have the power to say yes to your solution or offering. Otherwise, you're just wasting your time.
To learn more, download our eBook, Your Guide to Mastering Consultative Selling.