1. Negotiating Buyer Resistance
Chapter 12
Negotiating Buyer
Resistance

2. LEARNING OBJECTIVES Describe types of buyer resistance
Outline buyer resistance negotiation strategies
Discuss specific methods for negotiating buyer resistance
Describe ways to deal with negotiation-trained buyers

3. The Six-Step Presentation Plan
FIGURE 12.1: NEGOTIATION
The Six-Step Presentation Plan
Step One
APPROACH
Step Two
PRESENTATION
Step Three
DEMONSTRATION
Review Strategic/Consultative Selling Model
Initiate customer contact
Determine prospect needs
Select product or service
Initiate sales presentation
Decide what to demonstrate
Select selling tools
Initiate demonstration
Anticipate sales resistance
Plan negotiating methods
Initiate double-win negotiations
Plan appropriate closing methods
Recognize closing clues
Initiate closing methods
Suggestion selling
Follow through
Follow up calls
Step Four
NEGOTIATION
Step Five
CLOSE
Step Six
SERVICING THE SALE

4. FIGURE 12.2: THE NEGOTIATION
Strategic
planning for negotiation
of buyer resistance
Actions during
negotiations
1. Anticipate buyer resistance.
2. Review common types of resistance.
3. Review methods of negotiating
buyer resistance.
4. Prepare a negotiation worksheet.
1. Recognize and understand verbal
and nonverbal clues.
2. Validate the problem.
3. Find some point of agreement.
4. Do not allow anger to surface.
5. Answer customer’s concern.
6. Be alert for closing clues.

5. COMMON TYPES OF RESISTANCE
Related to need for the product
Related to product
Related to source
Related to price
Related to time

6. NEGOTIATING PRICE Salesperson Tactics Customer Tactics
Add value by explaining the cluster of satisfactions
Discuss price confidently
Discuss value rather than price
Discuss the relationship of price and quality
Discuss difference between price and cost
Budget limitation
Take it or leave it
Split the difference

7. FIGURE 12.3: TIP OF THE ICEBERG
Price
Assistance from
salesperson after
the sale
Favorable
credit terms
Excellent
technical assistance
Quick delivery
Comprehensive
warranty

8. FIGURE 12.4: BALANCE PRICE AND VALUE
(Dollars)
Value
(Benefits)

9. GENERAL STRATEGIES: NEGOTIATING BUYER RESISTANCE
Anticipate resistance
Know product/service value
Prepare
Understand problem
Validate problem
Find some point of agreement
Maintain relationship strategy
careful of anger

10. METHODS OF NEGOTIATION
Direct denial
Indirect denial
Questions
Superior benefit
Demonstration
Trial offer
Third-part testimony

11. Negotiations Worksheet
FIGURE 12.5: WORKSHEET
Negotiations Worksheet
Type of
objection
Product
Time
Price
Customer’s objection
“Fifteen cases of olives will
take up valuable space in my
receiving room. It is already
crowded.”
“This is a poor time of the
year to buy a large order of
olives. People are not buying
at this time.”
“I would rather not tie up my
money in a large order.”
Possible response
Direct denial:
“You will not have to face that problem. With the aid of our merchandising plan you can display ten cases immediately on the sales floor.”
Indirect denial:
“I agree that it has been a problem in the past, but consumer attitudes seem to be changing We will supply you with point-of-purchase material that suggests new ways to use this high-profit item.”
Superior benefit:
“As you know, olives represent a high-profit item. The average margin is 26 percent. With the addition of our $1.00 per case allowance the margin will rise to about 30 percent. This order will give you a good return on your investment.”