34/15/2017Learning ObjectivesUnderstand the process of negotiating win-win solutionsKnow the common objections most salespeople encounter working with customersKnow the basic points to consider in negotiating with customersUnderstand the specific negotiating strategiesUnderstand the sales manager’s role in negotiating win-win solutions
4The Wacky World of Negotiations Five basic tips for negotiating win-win solutionsBe clear about what you want and why you want itStay calm and focused on the key issuesDon’t lose sight of what’s importantNever resurrect dead issuesKnow when to walk
5Guidelines for Negotiating Win-Win Solutions 7.2Guidelines for Negotiating Win-Win SolutionsPlan and prepareAnticipation enhances negotiationsSay what you mean and mean what you sayNegativity destroys negotiationsListen and validate customer concernsAlways value the value proposition
6Negotiation Strategies 7.3Negotiation StrategiesQuestionDirect denialIndirect denialCompensating for deficienciesFeel-felt-foundThird-party endorsementsBounce-backDeferTrial offer
7QuestionTurn the customer’s concern into a question and refocus on one or more strengths of your value propositionGet the customer thinking in a new way and contrast his/her concern against an advantage
8Question - ExampleBuyer: Your product is 10% more than your competitor’s!Seller: Yes, it is slightly more expensive, but do you agree that the higher quality means fewer returns and lower service costs for your company in the long run?
9Direct DenialConfrontational strategy for dealing with customer objectionsCustomers may react negativelyUse this strategy when the customer states a clearly false and damaging statement about you, the company, or your productAvoid being offensive, insulting, or condescending
10Direct Denial - Example Buyer: I was told recently that you had to recall all of your production for the last two months because of a faulty relay in your switch mechanism.Seller: I’m not sure where you could have heard that. We have not had a recall on any of our products for over 10 years. If you like, I can provide the data for you. Your source was mistaken.
11Indirect Denial Less threatening than direct denial Begins by agreeing with the customer, validating the objection, then explaining why it is untrue
12Indirect Denial - Example Buyer: Demand for your products is strong. I’m not convinced you will be able to meet my order on time.Seller: You are correct. My company has enjoyed tremendous success and we are thankful… However, we pride ourselves on not missing order deadlines, and our customers will verify that…
13Compensating for Deficiencies Moves the customer from focusing on a feature your product performs poorly to one in which it excelsThe new feature must be important to the customer
14Compensating for Deficiencies - Example Buyer: The response time on your product is too slow. Your competition’s response time is two-tenths of a second faster.Seller: I agree with you. My product is two-tenths of a second slower. However, please note that it also costs 25% less per unit… and has 10% fewer returns…
15Feel-Felt-Found Acknowledge the customer’s feeling Extend the same feelings to a larger audienceCounter with a legitimate argumentCaution: this technique has been around for a long time.
16Feel-Felt-Found - Example Buyer: In my opinion, your products are overpriced and not worth the extra cost.Seller: Our products are slightly more that the competition’s and I can certainly see why you feel that way. Other customers have felt that way at first. However, when they take the time to examine the product quality, they have found the overall value to be worth the investment.
17Third-Party Endorsements Use of outside parties to bolster your arguments in the presentationAdds credibilityCan be combined with other strategies
18Third-Party Endorsements - Example Buyer: Your customer service has been questionable, and it is important I have tech support 24/7.Seller: I agree with you that our customer service was not what it should be several years ago. However, we made the investment to improve customer service, and now it is among the best in the industry. Gracie Electronics felt as you did but was willing to try us and is now one of our best customers.
19Bounce-Back More aggressive than some other strategies Turns a customer concern into a reason for actionOften very effective with objections about needing more time or a lower price
20Bounce-Back - ExampleBuyer: I’ve listened to your presentation but need more time to consider your proposal.Seller: I can appreciate that this is a big decision for your company. However, delaying this commitment only costs your company money. As we agreed earlier, my products will save nearly 40%...
21DeferMost common when the customer raises a concern about price early in the presentation before the value proposition has been defined
22Defer - ExampleBuyer: (before the full value of the product has been explained): What is the cost of your product?Seller: I can appreciate your interest in knowing the price of the product, but I would ask you to hold off just a minute until I know a little more about your product requirements…
23Trial Offer One of the best strategies to calm customer objections Does not take the place of a good sales presentationClearly define the terms of the trial offer beforehandMake sure the customer is fully checked out on the product
24Trial Offer - ExampleBuyer: I’m not willing to make a commitment to your copier today. It seems complicated and hard to use.Seller: I can appreciate your concerns. How about I have our service department install one for you and let you try it for one week. I will come by and demonstrate it for you...