Sales negotiations before closing deals, often turn out to be rocky terrain for sales executives. These tactical conversations used to be fairly easy earlier when a few companies exercised market monopoly. The average customer wasn’t very well-informed and usually had no choice but to go along with your offer. However today, it is impossible to survive as a salesperson without concrete sales negotiation skills. This is because customers are flooded with choices today. Furthermore, they are highly discerning, well-informed, well-aware, and cannot be taken for a ride. In the current, highly digitized age of information, you need to make your sales pitch with conviction. You also need to have a holistic knowledge of your offerings so that you can defend the pricing and features when the prospect plays hardball.
Important Sales Negotiation Skills to Imbibe for Aspiring Professionals
If you are keen on charting a successful career in sales and marketing, acquiring mastery over sales negotiation is a must. While a select few have an inborn flair for effective persuasion and communication, most sales personnel develop these traits via certified training courses. Thereon, they hone these skills with every crucial interaction in the field or on the job. Let us go through the important sales negotiation skills and how to master them:-
- Analyze your Product/Service Value realistically
For successful sales negotiations, you need to step into the shoes of the customers. As a salesperson, you need to see what you are selling from their point of view. From their perspective, what value and tangible benefits is it providing? Compare it with the value that your competitors are providing. Analyze this before making your pitch. Outright, aggressive selling and being overtly biased about your offerings will lead to failed negotiations.
- Don’t Normalize Outright Discounts
A majority of clients tend to ask for discounts just before closing the deal. At this point, you might be tempted to just give away whatever price-slash they want just to meet your sales target. But remember, giving frequent and outright discounts to every customer will just dilute your product value and brand recognition in the market. It is always better to suggest a free trial and ask them to consider the original pricing if they are completely satisfied with it.
- Stay in Control of Your Emotions
A crucial aspect of sales negotiation skills is to exercise control over your emotions. When the stakes are high and you are negotiating a very important deal on behalf of your company, it is quite possible to get carried away. Even if your prospect loses his or her temper, you need to stay calm, level-headed, and make your point. Getting unduly aggressive, angry, or rude will worsen an already tense situation and prompt the client to approach your competitors.
- Research is the Key to Effective Negotiations
Many are under the impression that good communication is the key to effective negotiations. Well, it is no doubt important, but your words and approach need to be backed by solid research. As a salesperson, ensure that you have in-depth knowledge of the following aspects before proceeding with negotiations:-
- Client research- What are their motivations to avail your offerings? What are their deterrents? What is the overall mindset and perception? What is their estimated budget?
- Competitor research- In terms of what your prospects are looking for, make sure you find out what your competitors are offering. What are your product/service strengths and weaknesses vis-à-vis theirs?
- Self-Introspection- Where does your company draw the line at price-slashing? What are the suitable alternates to discounts (like a free trial or additional freebies) that you can offer? If you are unsure, consult your colleagues and superiors before going ahead with negotiations.
- Product/Service research- Nothing irks a customer more than the half-baked knowledge of a salesperson. Always ensure that you thoroughly know about what you are selling.
Conclusion
The crux of all sales negotiations boils down to how well you can understand the clients’ psyche and anticipate their response. Therefore, good sales negotiation skills encompass your ability to rehash the offering to match the client’s preferences without affecting your profitability. Walking the tightrope between what is being demanded vis-à-vis how much you can offer without pushing the boundaries too much on either side is the challenge. As a salesperson, you can master this by being effectively observing, listening, communicating, preparing, and leveraging your power at the right opportunity.
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