I always remind salespeople to be as effective at the conclusion of the sale as they were at the beginning. It’s because although they are experts in making sales, prospecting, and creating presentations, many producers are only able to do 90% of the work needed to earn a high commission. After that, it will take only a couple of minutes for the client to make them feel drained on the price.
This isn’t good enough. Selling is already tricky enough already but what we don’t want to do is give our hard-earned cash away simply because someone has requested it. You’ll never be a successful salesperson for yourself or for your business in the event that you don’t have the ability to maintain your price.
Here are four negotiation strategies and counter-strategies to maintain your margins after the completion of the transaction:
1. Begin with the right attitude:
Have you ever witnessed two top athletes getting prepared to take one another on? It’s not just that they appear prepared… they’re because they are able to barely wait to start their game. You must have the same mindset. Instead of worrying about the moment the customer asks for a price, try looking towards it. Make a plan to be out of the transaction without a loss in margins or commissions intact Then, and you can prepare for the next challenge.
2. Make sure the conversation is directed in the right direction:
The most important rule to follow when combating price objections is to speak about the value. The fact that customers are even in negotiations with you implies that they’re interested in the product you’re selling them, and all you’re doing is determining what they’ll be willing to pay. Keep this in mind keep them in mind of the benefits they’re about to experience – eventually, they’ll be able to decide they’re worth what you’re asking for.
3. Be ready to walk away
Perhaps the most effective negotiation strategy that salespeople don’t utilize effectively is having sufficient prospects on their list. The more options that are interested in the products are being offered, and the lesser one buyer is vital to your business, as well as the greater confidence you’ll have in your ability to make a case. Make sure you’re attracting a lot of buyers, and you’ll never have to hesitate to withdraw from any offer when you’ve reached that stage; holding on to your price becomes much more accessible.
4. Cut the price and accept it as a fact:
I’ve spent just a few minutes reminding you of how vital it is to adhere to your pricing. However, in reality, recognize that there are occasions and circumstances when you’ll need to offer discounts. It could be because there is an inventory item that you need to be moved, or you have a reason that your relationship with the customer is too crucial to be let go. It is important to note to cut your profit margin must be an option last resort, and you should have an apparent reason for missing your margins.
Cutting prices constantly is an indicator of a weak salesperson, and if you’ve been relying on it to help you close new business for a lengthy period of time, it’s likely to be challenging to change. Develop an appropriate mindset and nurture new customers, and master the art of steering conversations towards quality, and you’ll be more effective in negotiations in the same amount of time.
Carl-Henry is a management consultant. He specializes in helping companies to select the best sales and customer service professionals. Carl is also a Certified Speaking Professional and the author of numerous books and articles on sales, management of sales, and service to customers. Carl conducts seminars and webinars for clients across the globe.