Sales Strategies for Successful Sales Negotiations

Sales Strategies for Successful Sales Negotiations

By: Liz Wendling

Like it or not, the ability to negotiate has become a necessary skill to possess whether you are a business owner or salesperson.  For the best sales strategies to compete in today’s marketplace you need to understand the various stages of the sale so you can move confidently through them. A good understanding of sales negotiation is essential if you want to succeed in closing the sale at the price you want.

Negotiating is not a game, it’s a process. It is much more productive to think of negotiating as a cooperative endeavor that all parties enter into for the purpose of having their needs, goals and objections satisfied.  When multiple parties enter into a negotiation on a cooperative basis, there is a strong likelihood they will each strive for resolution.

Many salespeople become fearful when the negotiation process starts, and they dread hearing the questions that set the process in motion – “what type of discount do you have to offer me today?” or “I can find it cheaper somewhere else, can you match that?” or “that’s way too expensive, you’ll have to do better than that.” They don’t like to negotiate because they lack self confidence or were never taught how to do it efficiently and effectively.

The sales negotiation process is a special kind of communication, because it uses a number of tactics and methods for communicating that are not usually part of normal, everyday conversation or discussion. But with a solid sales promotion strategy in place and the right tools for negotiation, you are less likely to fall victim to ineffective negotiation tactics and end up losing sales or not getting the best outcome for you and your company.

Here are 5 Sales Strategies or Sales Tips to Negotiate Successfully:

1.Listen with diligence. This is easier said than done and often overlooked. Your listening skills will be greatly enhanced when you focus and concentrate on what your customer is saying and can truly understand their needs. Ask questions like, “can you say more about that?” or “what’s the concern?” or “can you help me understand more.” Then be quiet and listen!  Hear them out, ask clarifying questions and focus on understanding.  It’s impossible to negotiate or offer a solution to your customers if you have no idea what they need.

2.Set your ego aside. The negotiation is a discussion about possible solutions to the issue and not about you. What really matters is the customer and the deal on the table.  Many salespeople get very personal in their negotiation and become attached to the outcome. If their offer gets rejected, they feel that the customer is rejecting them, not their offer. Never let your pride get in the way of closing the deal.  Avoid the temptation of being egotistical in the negotiation process; it’s not professional and shows a lack of confidence in your product or service, and in yourself.

3.Know when it’s over. It is important to know when to stop trying. Your primary goal in the negotiation process should be to create a positive, long-term relationship with your customer while establishing a price and set of conditions that fits for both of you. Negotiating a low price just to make a sale sets you up for future price discussions and discounts.  Before you start, know your bottom line, and be prepared to walk away if the sale isn’t advantageous to you and your company.

4.Dig deep to understand. Always get to the root of your customers’ concerns and allow them to expand on their specific needs and issues.  Make sure you completely understand what your customer has stated. A great way to make sure you do understand is to restate a summary of the customer’s ideas to clarify any potential misunderstandings. For example: “Just to make sure I am clear on everything you have just said, you would like . . . ?” or “So we are all on the same page, you need…?”

5. Ask the right type of questions. There are certain talents that successful negotiators seem to share and many of them have worked hard at developing them. These talents have to do with the art of communicating – asking effective questions and gathering information wisely.  Their questions fall into the five categories: general questions, direct questions, leading questions, fact-finding questions and opinion-seeking questions.  Skillfully using a range of question types will get the best outcome in the negotiation.

Many factors influence the negotiation process but understanding these steps helps to keep you calm, cool and collected and keeps your focus on what matters most – getting the best deal and creating a win-win situation for both parties.

When people understand how to negotiate effectively, they not only reach more sales agreements more often, they build strong customer relationships that ensure the profitability of those agreements. Remember: It’s not what you sell, it’s how you sell.

One more thing to consider…..Need a “911” Strategy Session? If you are struggling with sales and/or keep running into the same obstacles and issues, reach out and schedule a 30 minute complimentary call with me. You never know…it could change your sales results and bottom line. This session is an opportunity for me to ask questions and learn where you are in your business, where you want to go, and what might be holding you back.

PS. THIS IS NOT A FREE COACHING CALL. That would be irresponsible of me to offer you, as change doesn’t happen overnight, and certainly can’t happen on one phone call. This is purely a chance for us to get to know each other, see where you are in your business, and see if it makes sense to work together. I want to serve you deeply, and in order to do that, we need to have a frank conversation about your business first.