Negotiating for Win-Win Solutions

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Negotiating for Win-Win Solutions

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(No Transcript)
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Learning Objectives

• Understand the process of negotiating win-win
  solutions
• Know the common objections most salespeople
  encounter working with customers
• Know the basic points to consider in negotiating
  with customers
• Understand the specific negotiating strategies
• Understand the sales managers role in
  negotiating win-win solutions

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The Wacky World of Negotiations
Five basic tips for negotiating win-win solutions

• Be clear about what you want and why you want it
• Stay calm and focused on the key issues
• Dont lose sight of whats important
• Never resurrect dead issues
• Know when to walk

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Guidelines for Negotiating Win-Win Solutions
7.2

• Plan and prepare
• Anticipation enhances negotiations
• Say what you mean and mean what you say
• Negativity destroys negotiations
• Listen and validate customer concerns
• Always value the value proposition

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Negotiation Strategies
7.3

• Question
• Direct denial
• Indirect denial
• Compensating for deficiencies
• Feel-felt-found

• Third-party endorsements
• Bounce-back
• Defer
• Trial offer

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Question

• Turn the customers concern into a question and
  refocus on one or more strengths of your value
  proposition
• Get the customer thinking in a new way and
  contrast his/her concern against an advantage

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Question - Example

• Buyer Your product is 10 more than your
  competitors!
• 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?

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Direct Denial

• Confrontational strategy for dealing with
  customer objections
• Customers may react negatively
• Use this strategy when the customer states a
  clearly false and damaging statement about you,
  the company, or your product
• Avoid being offensive, insulting, or
  condescending

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Direct 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 Im 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.

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Indirect Denial

• Less threatening than direct denial
• Begins by agreeing with the customer, validating
  the objection, then explaining why it is untrue

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Indirect Denial - Example

• Buyer Demand for your products is strong. Im
  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

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Compensating for Deficiencies

• Moves the customer from focusing on a feature
  your product performs poorly to one in which it
  excels
• The new feature must be important to the customer

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Compensating for Deficiencies - Example

• Buyer The response time on your product is too
  slow. Your competitions 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

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Feel-Felt-Found

• Acknowledge the customers feeling
• Extend the same feelings to a larger audience
• Counter with a legitimate argument
• Caution this technique has been around for a
  long time.

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Feel-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
  competitions 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.

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Third-Party Endorsements

• Use of outside parties to bolster your arguments
  in the presentation
• Adds credibility
• Can be combined with other strategies

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Third-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.

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Bounce-Back

• More aggressive than some other strategies
• Turns a customer concern into a reason for action
• Often very effective with objections about
  needing more time or a lower price

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Bounce-Back - Example

• Buyer Ive 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...

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Defer

• Most common when the customer raises a concern
  about price early in the presentation before the
  value proposition has been defined

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Defer - Example

• Buyer (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

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Trial Offer

• One of the best strategies to calm customer
  objections
• Does not take the place of a good sales
  presentation
• Clearly define the terms of the trial offer
  beforehand
• Make sure the customer is fully checked out on
  the product

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Trial Offer - Example

• Buyer Im 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...