What Can You Do For Me On The Price?

A standard question when you’re buying. An inevitable inquiry when you’re selling.
How would you respond at this moment?
Many people will respond to the question by immediately giving or implying the possibility of a discounted price. Again – great when you’re buying, a margin killer when you’re selling.
Here are the hard-dollar points to better negotiating…
1. Remember that negotiation success depends more on the work you do early in the sales process than on the negotiation moment itself. It’s all about the perceived value of your offering and the buying urgency you create with your prospect. The stronger the perceived value and urgency by your prospect, the better. Great front work (asking open-ended questions, delivering key benefit statements, responding to objections appropriately, etc.) combined with the delivery of strong value/ urgency statements will further strengthen your and your team’s negotiating position

2. Be prepared for the inevitable discount inquiry. Preparation feeds confidence. Always respond by implying that a discount is likely not possible and/ or if it is, it will mean the prospect will need to give up an added feature or make a larger buying commitment for you to “do something on the price” By itself, avoiding the inclination to immediately jump to a discounted price can literally translate into thousands, if not tens of thousands, of extra dollars for you and your company every year.

Think value. Think urgency. Be confident.

Nothing complex. Nothing manipulative. Just simple preparation and thoughtful execution.
Get some starter ideas of value/ urgency statements & negotiating responses (and a printable reminder that preparation feeds confidence). The number one mistake I’ve seen sales people make over the years is to lead with a discount, not knowing whether or not price is the real objection. Most prospects will tell you it’s price, but a simple question like “So, Mr. Buyer, if I lower the price by 5%, are you prepared to sign today?” If the answer is no then you’ve not asked enough questions in your preparation phase.  

Remember, ask questions then listen. They will tell you how to sell to them if you ask the right questions.

Finally, read two books on selling.

1. Mahan Khalsa’s “Let’s Get Real or Let’s Not Play”
2. Michael Bosworth’s “Solution Selling, Creating Buyers In Difficult Selling Markets”

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s