Being able to negotiate effectively is a crucial skill for sales professionals. You can excel at discovering new markets, reaching new businesses, and engaging new prospects. You can do a phenomenal job of establishing rapport and tailoring your pitch. But if you slip up in the home stretch—in the negotiation phase—all your efforts could go to waste.
Clint Babcock, the author of Negotiating From the Inside Out: A Playbook For Business Success, says sales professionals often make three negotiation mistakes that can end up jeopardizing or killing the deal. In this issue of Promotional Consultant Today, we take a closer look at these mistakes and share Babcock’s insights on how to overcome them.
Mistake No. 1: Doing too much talking. According to Babcock, this is the single-most frequent mistake during sales negotiations. Sales reps are often so eager to win the business, they rattle off all the features and benefits of their product or service instead of focusing on prospects’ specific pain points.
What to do instead: Think like an investigator and become curious and inquisitive. Get to know the prospect’s unique needs and situation. The more you discover, the better equipped you will be to reinforce your position as the right choice for their problem or need. Instead of talking up your solution, commit to actively listening and uncovering as much information as you can.
Mistake No. 2: Giving in too quickly. Another common sales negotiation technique is bringing in concessions at the first objection. Sales professionals shouldn’t be so quick to offer or agree to concessions, says Babock. However, when a buyer asks for a lower price or better terms, the sales rep often responds, “What were you looking for?” While you might be familiar with this part of the negotiation process, you might not be fully prepared. You could be dealing with an expert negotiator who has leverage in the situation.
What to do instead: Rather than opening the conversation to allow the prospect to ask for concession after concession, do some prep work and know what you will ask for once the conversation gets to the negotiation part. Babcock says you should identify what you will ask for in return when the prospect asks for a concession. And, he says, hold on to concessions as long as you can. When you do bring them into the discussion, be sure to get something valuable in return, such as a firm commitment to do business.
Mistake No. 3: Focusing only on the money. Prospects have a budget they must keep in mind, but money isn’t the only issue when it comes to signing a sales contract. Babcock points out that the best negotiations often have little or nothing to do with money. It’s really about finding the best fit for the problem or need.
What to do instead: Rather than offering discount after discount, stand your ground, recommends Babcock. If you make it only about the money, you both lose. Yes, the prospect wants the best solution at the best price. Rather than offering discounts, Babcock recommends painting a vivid picture of how you can solve their issues and pain points with your specific solution.
Learning to negotiate well takes practice. If you or sales reps find yourselves dominating the sales conversation, agreeing to concessions too soon, or making the issue only about money, consider how you can reframe the discussion. With the right training and coaching, your sales reps can go into each negotiation well-informed and empowered to create a win-win situation.
Compiled by Audrey Sellers
Source: Clint Babcock is the author of Negotiating From the Inside Out: A Playbook For Business Success. Babcock has over 25 years of sales, leadership and negotiation experience and has worked with senior executives at companies in a wide range of industries to help them strategically build their sales forces.
