Negotiating Techniques Ring Up Sales

A customer walks in, wastes (or takes) 45 minutes of your valuable time, and then leaves without buying anything. Have you ever had this happen to you? If it hasn’t, you must be selling gold at $10/oz.

The parting line of the customer is usually “I’ll have to think it over,” “Your price is too high” or “Cheap & Sleazy Distributors have a much lower price.”

How many of these people ever come back? Too few, so it is important to sell them when they first come in.

Let’s face it, most people aren’t going to talk about product for very long, unless they want to buy it. Yes, there’s a minority who will never buy. Let’s forget about them.

Many people would rather be golfing, boating or just sitting around the house than go out shopping. But, if they have to come to your place of business, a sale is possible. What can help to close the sale? Simple negotiation techniques can turn the tide and the strategy isn’t too difficult to master. It requires proper preparation, and flexibility with your sales approach. The principles can be used for any product or service.

Your Advantage

You’re starting off with a couple of pluses from the moment the customer walks in your door. It’s your place of business, which gives you the “home field” advantage. Being the expert on the product is another factor in your favor. Find out as much about the customer right away. This may turn out to be a positive clue to a selling point.

It is very important to establish if he’s the decision-maker in the buying process. Sometimes, after the sales discussion takes place, a customer begs off by saying that approval is needed of another person. Finding out quickly whether the customer is the potential purchaser is a significant detail. You have to decide how much time to spend with an individual without purchase authority. Why are they looking at your product line? Are they just shopping out of curiosity? Do they really represent a potential buyer?

If two people are together, which one will make the purchase commitment? Discovering this isn’t too difficult. During the course of the conversation, one person will usually let the other ask or answer all questions. If possible, try to get the person not making the buying decision to agree with you on the merits of the product. This will sometimes weaken the bargaining position of the decision maker. After all, they don’t want to rebuff their companion in public.

Therefore, they will be reluctant to dispute anything the other person has already agreed to. On the other hand, only one person should do the selling. It gives you complete control over the sales strategy to be used with the buyer. It also prevents the possibility of conflicting statements or claims being made.

Bend, But Don’t Break

As you might surmise, prospective buyers are not all friendly. They may bait, argue or even insult you. Losing your temper means losing a sale. The prospective buyer may be deliberately trying to rattle you, to gain the upper hand in bargaining. Keeping your composure will deflate a hostile attitude, and may weaken the buyer’s sales resistance.

Overcoming sales resistance is where negotiating flexibility comes into play. Always be ready to adjust your sales approach to counter the buyer’s objections. For negotiating purposes, decide what tradeoffs can be made in terms of price, payment terms, service or delivery, etc. decide what is not negotiable under any circumstances.

When negotiating the sale, don’t make any concessions unless the customer is seriously backing off from buying. Of course, concessions should be made piecemeal, so you always have something in reserve that can be offered to clinch the sale. The important point here is your overall gameplan can be established beforehand.

It is only the implementation that will vary from customer to customer. Adqueate preparation makes it unnecessary to interrupt sales discussions to work up new figures, or think about whether a particular concession can be made. This is crucial, since any interruption gives the buyer time to think. About what? Maybe an excuse for not making the purchase.

While on the subject of excuses, here’s where your prior preparation really pays off. You will have formed a strategy to counteract the customer’s objections. In general, customer statements as, “I’ll have to think it over,” and “I can’t afford it right now,” result in indecision on the part of the buyer.

Overcome this hesitation by giving the customer reasons why an immediate decision is to his advantage. You can, at this point, tell why you’re having the item in stock and at a set price, will mean immediate shipment, as opposed to waiting to reorder to come in, perhaps at an increased price.

If the prospect keeps harping on the fact he believes your price is too high, be prepared to show him advertisements of your competitors showing your price is actually in line, or lower than those of your competitors. If your price is comparable, but not lower, point out the reliability of your firm, your reputation for service and other factors as to why you stand behind the merchandise you sell.

The Secret To Increased Sales?

Despite all of your efforts, some prospective customers won’t make an immediate purchase. Close off your discussions with these people by leaving them with the responsibility for making further contact with you.

This serves two purposes. You’re not wasting time and money contacting what may be a hopeless sales prospect. Furthermore, your initiative may be construed as a willingness to bargain further. However, if the prospect calls you, the sale can probably be made on your terms.

What’s the secret to increased sales? There is none. All that is required is knowing your product, recognizing buyer reluctance and overcoming this hesitation. It isn’t easy, but can be accomplished by adequate preparation in establishing a sales strategy , and flexibility in applying that strategy during sales presentations. Combine this with some hard bargaining, and increased sales will take care of themselves.