Negotiating
Negotiating may be the most important process in sales besides for closing because this generally determines how much money you will make on a deal. No matter if you’re dealing with a purchasing manager, owner, controller or other, chances are in some part of the sales process they will try to get a lower rate or better terms on their deal. If they do try to negotiate, this should be viewed as a positive because it means they are serious about buying.
The main point in negotiating is to have a win win for both parties involved. So, if you give something, take something as well. This may sound impossible in some instances but here are some examples. If a prospect wants to get a lower price with everything else constant, a good win win may be to honor the lower rate but only if they sign today or in a set amount of time (the shorter the better). Make sure to have them agree to this time frame and stick to it. If the prospect thinks you are weak, or you don’t stick to your agreed deadlines, they will continue to try to take advantage of you.
Another example if the prospect is trying to lower the price is a response of: I will lower the price to X but you will have to buy X amount more or extend the term of the contract by X days/months/years. With this agreement the prospect gets the lowered rate but you are able to sell them more or extend the time they are contracted to buy from you. It’s a win win.
Most prospects or current customers will try to lower their prices and open up the conversation of a lower price. Be prepared and stand firm. Most of the time if you don’t budge they will still sign a deal. They are just pre-dispositioned to try. Don’t be so quick to adjust your numbers just to make a sale unless you get something in return. Your customer or prospect will respect you more and you will make more money.