<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=349935452247528&amp;ev=PageView&amp;noscript=1">
Search
word-map-thumb

The Alternative Board Blog

Key Negotiating Tactics Your Sales Team Should Have

Apr. 9, 2018 | Posted by The Alternative Board

Businesses with expert sales teams sometimes find themselves on a mystifying string of bad luck. Their sales professionals identify and qualify promising leads, even have a series of discussions with these prospects—only to end up with nothing to show for it.


One possible cause for the inability to close a deal might lie in a tactical misconception of what “negotiation” means.

Engaging with a prospect and finding ways to secure an agreement can be complicated and easily derailed. That’s why every salesperson should thoroughly grasp the idea that negotiations “are termed successful when real and perceived differences are adjusted while preserving credibility, customer value, and profit margins.”

So how can you master the art of negotiations and make the sale that’s so important to your business? Here are tips for salespeople to keep in mind:

Establish value in the prospect’s mind. Your would-be customer will be more receptive if you’ve already laid the groundwork of value. Long before actual talks begin, send the prospect valuable content he or she might not otherwise have, as well as information on how your product or service can dramatically benefit that person’s company in the long run. Establishing value beforehand generally makes a prospect more willing to enter into sincere negotiations.

Know what you’re prepared to give up. It’s fruitless (and can be self-defeating) to enter a sales conversation without knowing your bottom line. Don’t rely on spontaneously offering an exclusive discount or some other “value-added” concession in order to seal a deal. You may end up giving away more than your business can hope to get. Prepare with “strategic concessions” in mind before talks begin.

When offering a concession, ask for something in exchange. It’s not much of a negotiation if you offer key concessions and get nothing in return. As the back-and-forth talks proceed, ask for more favorable payment terms, a bigger initial order or arrangements for repeat business. What appear like significant concessions at this initial stage might yield greater opportunities for up- and/or cross-selling at a later time.

Always remember, negotiations aren’t personal. Just as you enter negotiations with clear-cut business goals in mind, so does the person on the other side of the table. Just like you, they’re looking for the best possible deal. Therefore, getting too defensive or emotional will harm your chances of achieving the desired goal. Focus on being patient and being willing to see things from the other person’s perspective. Business is business, and the prospect’s demands “do not reflect on you as a person.”

Don’t be afraid to say “no.” A salesperson’s instincts generally tend towards always being agreeable with the prospect. But saying no is an integral part of every negotiating session. Of course, it’s vital to do so at the most appropriate moment, and in the most courteous way possible.

Be prepared to walk away. As much as you may want to close a particular deal, there are times when negotiations end up in a place that can negatively impact your business. A prospect who’s too demanding or unwilling to budge from a specified price might not be worth your company’s efforts in the long run. As HubSpot notes, “A customer who only agreed to sign if the contract was radically amended or the price was drastically dropped is bound to cause problems down the road.”

Negotiations aren’t easy. They demand maturity, self-control, strategic preparation and an ability to listen closely. Salespeople who cultivate these traits will see their success rates go up as they become better practitioners of this delicate craft.

Want to learn more about sales and negotiations? Find out if a TAB Board is right for you!

 

Read our 19 Reasons You Need a Business Owner Advisory Board

DOWNLOAD

Written by The Alternative Board

Related posts

5 Ways To Manage A Remote Sales Team
Nov. 5, 2021 | Posted by The Alternative Board
Sales leaders have struggled with managing remote sales teams even before the pandemic. Today, with an increasing number of organizations moving partially or fully remote, the need to put practices...
Phone Sales Mistakes Your Team Might Be Making
Oct. 28, 2021 | Posted by The Alternative Board
Cold calls and other approaches to phone sales might not be considered as vital as they once were, but many businesses still rely on this method for customer acquisition. That’s all well and good, as...
How to Lead More Productive Sales Meetings
Oct. 26, 2021 | Posted by The Alternative Board
Sales meetings, like business meetings in general, come fraught with potential minefields. They’re often perceived by team members as a waste of time, too predictable and boring, not long enough or...
5 Surefire Ways to Boost Repeat Sales
Oct. 19, 2021 | Posted by The Alternative Board
Aside from new customer acquisition, repeat sales is the “holy grail” of all company sales departments. Having customers come back again and again for your products or services should be at the very...
17 Essential Traits of Successful Entrepreneurs - Part 2
May. 10, 2021 | Posted by The Alternative Board
In our last post, we began to review 17 Essential Traits of Successful Entrepreneurs. Here we will continue looking at additional great tips from the TAB community.  #8 Endurance in the face of...
How to Sell During Times of Uncertainty
May. 6, 2021 | Posted by Phil Spensieri
If your business is struggling right now, you may be wondering if there’s anything you can do to improve your sales. While there’s no guarantee that any specific strategy will accomplish this during...
Tips on Going Paperless in 2021
Mar. 11, 2021 | Posted by The Alternative Board
Businesses seeking to economize, as the world slowly recovers from the COVID-19 pandemic, should take a close look at going completely paperless in the workplace. Is this really a worthwhile goal?...
3 Tips for Rethinking Your Business Model
Feb. 2, 2021 | Posted by Phil Spensieri
One of the important lessons the COVID-19 pandemic has taught many business owners is that business agility is a key component to running a successful business. Business owners are challenged more...
Closing Techniques that Help Build Sales
Jan. 12, 2021 | Posted by The Alternative Board
Salespeople all agree about the importance of “ABC” (Always Be Closing), but there’s considerable diversity of opinion on how to go about it. The best salespeople understand that working towards a...
Does Your Sales Team Possess Client Engagement Skills?
Dec. 28, 2020 | Posted by The Alternative Board
We hear a lot of talk about the importance of employee engagement, but how well do members of your sales team engage with current and prospective clients? Whenever a customer and salesperson talk...