How to Improve Your Negotiation Skills by 140%
All types of deals end up with negotiations, no matter how much the salesperson is qualified or trained to follow the sales process or use prospecting automation. In order to make a successful agreement, the salesperson may shift from the consultant to negotiator. Negotiations can move to any direction, so the salesperson should follow some important and valuable negotiation tips to make the sales successful. Following are the important tips to enhance negotiation skills for the sales representatives.
State advance allowances that are offered
In order to give allowances, you may choose additional services of six to eight months or a 30% discount. In order to offer such a concession, you should be fully satisfied that you have taken a right decision. The salesperson should clearly mention all add-ons, price discounts and freebies before offering a deal to the customers so that a beneficial agreement (win-win situation) can be signed.
Let your customer deal first
If your customer wants to negotiate first, after reading your terms and conditions, then let him do. In order to be accommodating, the salesperson can offer some discounts or other add-ons before the customer starts negotiations. It is true that you don’t know what your customers want to demand so let your customer starts the conversation first.
Don’t specify the limits
When your customer ask you for the price discount on a particular product, then you should give them accurate figure. The salesperson should always avoid using price discount limits for the customers for example 10% to 15%. Always give a specific figure to the customer and then start negotiations. The word “in-between” or “between” should not be used to make the contract successful.
Don’t try to split the difference
The process of negotiation should be made smooth. If your customer wants to take 50% discount on the product’s price, then the salesperson should not give 25% discount at once. He should negotiate from the smaller amount. Although splitting the discount is logical, but the salesperson should not do so. If the salesperson offer less discount (around original value), the customer will be more likely to accept the offer to make the contract.
Don’t make a written agreement until the negotiation is over
When you negotiate for something, it is obvious that you go back and forth several times. So don’t start prospecting automation with an agreement until the customer wants you to do it. During the process of negotiation, you may give several ideas. Immediately write the contract with all terms and conditions once all parties or your customer is satisfied with one point.
Always negotiate with right person
A right person is the one who have to make purchase decision. Sometimes, the salesperson negotiates with the wrong person. John Holland states that negotiating with right person is very important. In such a case, the decision maker starts negotiations on the already discounted price that may be good for the prospect but not fair for you.
Getting return on concessions
A beneficial or a healthy salesperson-prospect negotiation is the one in which the negotiation would end up with the win-win situation for both the company and the prospects. The salesperson may demand long term relationship with the prospects in returns to the concession. This will ensure the mutual trust and respect between the salesperson and the prospect.
Take your conversation apart from money
Although, price is the main and only factor on which two parties negotiate with each other so it is very important for the salesperson to negotiate on the discounts. Since the price if related to the values and values are related to the products, so the salesperson should also focus on some other aspects of products like add-ons, freebies and many other things. Make sure that it is not the rule of thumb, you can turn your negotiation on the basis of situation or demand of the customer.
Avoid hot conversations
It is very important for the salesperson to keep the prospecting automation conversation light for future relationship. Although, both parties sit in opposite directions, but they should not create bad blood. They may go for a long term relationship, so it is very important that the conversation should be light.
Leave the negotiation
Salesperson should not try to make a contract at any cost. If the customer demands unreasonably that is non profitable for the company, then he should try to leave the negotiation. A customer who demands you more than the thing you can offer may become unbearable for you especially in the longer run. If they can not satisfied with your offer then you should immediately leave the negotiation.