Wednesday, February 12, 2014

SG Sales Guru: Sales Training - Negotiation Tip

Sometimes during the benefits presentation, the sales prospect may start to negotiate for a better deal. While this is usually a good sign, as it indicates interest, it is important that you first get a commitment to buy before starting to offer concessions.
 
This step of getting a commitment is important as without the commitment to buy, offering concessions only weakens your selling position. Once that happens, the following two things can happen ....
 
Firstly, the prospect may use your offer to negotiate with another vendor. If his intent is to drive prices down, this then puts you in the middle of a bidding war and will result in thin margins if you end up getting the deal.
 
Secondly, if the prospect's intent is not to start a bidding war, then when he is finally "ready to buy", he will then use this to push for another round of concessions. Once again, you will end up with razor thin margins.
 
The outcome of both scenarios are the same - think margins for you. To prevent the above scenarios from happening, it is therefore important that you only offer concessions after getting a commitment to buy. Don't let your haste to close a deal let you be manipulated by the prospect. This is sales training 101.

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