Sales Training Article: Part Two - "Let the Seller Beware... "
By Gary Walker, Co-founder of CustomerCentric Selling®
This month's article is a continuation from last month's Tips & Tactics article, which can be found here:
6. Negotiate Only with the Decision MakerIf you agree with the concept, 'You can't sell to someone who can't buy', then you're allowing yourself to be drawn into premature negotiations with non-decision makers who can result in further requests for concessions from everyone who you will eventually have to meet with. The concession you make to the first person becomes the starting point for the next person. It's like getting nibbled to death by a duck!
Once again, if it's at the appropriate point/step in the sales process, before indicating whether or not you are prepared to negotiate, the question we suggest you ask is: "Are you telling me that I'm the selected vendor and the only thing you and I need to do in order to bring this purchase to closure today is to agree upon price?"
7. If Pressured for Better Pricing or Terms, Begin with 'No'When pressured for pricing and terms, we believe your first response should be a plain and simple 'NO.' If your buyer perceives from your response that there is any room for movement, perception then becomes reality and you are forced into a defensive posture.
If you have jointly developed a 'cost/benefit analysis' with your prospect that is mutually agreed upon with outlined benefits complete with metrics, rather than a self-serving ROI form full of assumptions that most companies routinely ask of their customers, then you've probably determined that the potential value to your customer is two to three times what you're asking them to spend! It's already better than win/win! It makes it very easy to simply say, 'No.'
8. Don't be Afraid to Walk Away from a Potential OpportunityAt this point you should have established your competency and your company's competency, introduced and created a real need for your company and product differentiators, proved that you are capable of providing them with what they need to: achieve a goal, solve a problem, and/or satisfy a need, facilitated a cost/benefit analysis and obtained agreement to the potential value. Nevertheless your prospect continues to insist on squeezing you for better pricing and/or terms. Professionally declare an impasse, walk away and go back and consult with your manager.
Remember it's your customer's right and obligation to try to obtain the best possible deal for their company. It may be necessary for the seller to walk away to have the buyer conclude that it is as good as it is going to get. Above-quota sales people will do this in a heartbeat, but if you ask a below-quota sales person to do this, then be prepared to break out the defibrillator! The moral being, it pays to prospect and maintain a healthy pipeline.
