Effective negotiation enables parties to work out a deal that will benefit both sides. As much as possible they would want to increase the benefits and decrease the expenses of the deal. Negotiation is not just about making the other party understand your side. It is about combining different perspectives into one that will be beneficial to both of the parties.
In sales, effective negotiation is also key to maximizing profit. Here are some techniques to ensure negotiation in sales.
Focus on the customer’s benefit.
The customer doesn’t have any concern whether you reach your monthly target or not. Effective negotiation should focus on how his needs will be met. Maximizing the customer’s money is the result of negotiation. Instead of telling them about how far ahead the technology of a car is, explain how it can help them save money and time.
Know who you are up against.
You must also know the strengths and weaknesses of your competition’s products. Effective negotiation ensues when you are able to compare your product to others. You must be ready with whatever things they throw at you. If they contest your price, defend why they benefit more even if the price is higher.
Save your effective negotiation skills to those who matter.
Always aim your target to those who will play a part in decision-making. Effective negotiation with a secretary will not matter because she will not be the one who will buy your products. If you can’t set a meeting with the big boss then it’s better to find your next target somewhere else.
Negotiation should make you stand out above the rest.
Effective negotiation is strengthened when the product or service that you offer is unique. Identify the aspects which make your offer different. Explain why this is a chance that they shouldn’t miss. Some customers purchase products that are not usually used by many.
Sometimes copying is a good thing.
Imitation is flattery. Effective negotiation lets the customers know the benefits people have gained from using your product or service. This will encourage them to try it as well.
Time is Gold.
Don’t let yourself run out of time to sell the product. When time runs out, the ability to dictate price is lost. Customers always take advantage of this. Don’t let yourself fall into the trap. Effective negotiation should be done to make sure that the deal is a win-win situation. Don’t go for one-sided deals. Karma comes around quickly and may hurt your business in the long run.
Use Terms to your advantage.
When effective negotiation cannot be done in the pricing alone; try doing it for the terms of service. In the loans industry, agents are able to give higher interest rates due to the flexibility of the payment.
Rules are not meant to be broken.
Sometimes effective negotiation requires you to psych people out. Some customers tend to give in easily when they learn that the terms they want to pursue are not allowed by the company’s policies. Sales agents usually print a copy of their price list with words that imply that the terms should be strictly followed.
Save the best for last.
Customers always try to bargain to reduce the price that is being offered. Effective negotiation should be able to counter this. Offer a price that is higher than your actual last price so that the customer will think they are getting a good deal once they are able to bargain with you.
Learn how to say No.
Effective negotiation is not always about adapting to what the customers want. You also have to learn to take the risk. Agreeing all the time may destroy your image. Learn to let go if you know that the deal is not going to be profitable.