Virtually everyone in sales is required to negotiate the terms of a deal. Unfortunately, many sales people lack the ability to negotiate effectively and make a variety of mistakes that cost them money. Here a 16 of those mistakes.
1. Believing that price is the primary reason why people make a buying decision. Although price is a factor in every sale, it is seldom the motivating factor behind a person's final decision.
2. Not asking enough high-value questions. I'm still amazed how few sales people take the time to ask great questions during the sales process. This makes it more difficult for them to effectively position their offering.
3. Not gathering the RIGHT information. While it is essential to ask questions, it is equally important to ask the right questions so you can negotiate more effectively.
4. Trying to rush the negotiating process. Effective negotiators have the patience of Job. They can wait out delays and they never show anxiety when the process doesn't move as quickly as they would like it to.
5. Failing to establish the value of their product, service or solution. Value is in the eyes of the beholder so determine what is important to each buyer or customer and position your product or service accordingly.
6. Allowing their ego to get in the way. Negotiating is part of business but I have seen people walk away from a good deal because their ego got in the way and clouded their judgment.
7. Fear of losing the sale. Remember, there will always be someone else to sell to. This fear is more prominent when a sales person's pipeline is running on empty so avoid it by constantly adding new prospects to your pipeline.
8. Another mistake is to reveal any deadlines you working with. A tight deadline puts you under time pressure and a savvy person will use this grind out a better deal for themselves.
9. Neglecting to negotiate with limited authority. Don't hesitate to tell a prospect that you need to check with your boss before you agree to a concession. This gives you wiggle room and allows you to appear that you are working on behalf of your customer.
10. Failing to plan. Failure to plan means planning to fail. Invest the time to plan your approach, the tactics you will use, the concessions you are prepared to make, and what information you still need to negotiate the best possible outcome.
11. Failing to determine a walk-away point. If you don't know when to walk away from a sale, you could end up losing money.
12. Unable to walk away. Too many sales people find themselves in the position of accepting an offer only to discover later that the deal actually cost them money. If the sale doesn't make good business sense be prepared to walk away from it, regardless of the time you have invested.
13. Not taking a time out to think. Important decisions are sometimes made without proper thought; often in the heat of the moment or in order to get the deal done. Taking the time to think about the implications can save you money and add critical profit dollars to your bottom line.
14. Failing to get a different perspective. I often talk to my business partner before making a final negotiating decision. This gives me a different perspective, and often, new ideas and strategies. Use your time out to review the deal with someone who is not attached to the outcome.
15. Negotiating with the wrong person or people. If you're not talking to someone who can make a final buying decision then you are dealing with the wrong person.
16. Talking too much. I have watched dozens of sales people negotiate with themselves because they talked too much. The best negotiators listen more than they talk.
There you have it. Sixteen fatal mistakes, blunders and gaffes that sales people make when they negotiate. Avoid these errors and you will improve your results, increase your top line sales and your bottom line profits.
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