All sales people want to excel and achieve their goals.
There are two possibilities: sign more and/or sign better.
A salesperson trained in negotiation can earn as much (or even more) by signing 10 contracts as a colleague who sells off his product to sign 20!
The difference between a good and a bad salesman?
A good salesman wants to close the sale.
The average salesperson wants to close the sale at all costs.
They forget a little easily that if they have reached this point in the sales cycle, it is because there is a real interest on the customer's side: he wants your product or service.
He needs it. So why give in?
Our tips on how to stop losing money in the home stretch.
Don't be overwhelmed.
There is only one hurdle left to clear. The price.
The best salespeople keep their heads and forget about being a salesperson.
This desire to close a sale quickly before the prospect changes their mind.
Keeping a cool head:
1/ Be prepared.
Imagine the agenda of the meeting and the course of your arguments.
What is your offer? What is your floor price (the one below which you cannot go lower)
What concessions are you prepared to make to justify a certain discount?
Ok to lower the price, but in return: Longer commitment period. No trial period. If you sell software: a larger user base.
Remember: when the customer is negotiating, it's a good sign. They have already decided to buy your solution.
2/ Become rational: measure the things that matter.
Review the various exchanges you have had with your future client and capture all the elements that will convince you that your prospect needs your solution more than he or she would have you believe.
- How many people will be present in the meeting? How many were present at the last meetings?
- How many emails have you exchanged since the beginning of your discussions?
- How many appointments, how many calls have you had?
If the intensity is low, one might think that the motivation on the other side is not very strong.
When the intensity is high: you have exchanged nearly a dozen emails, you have had several meetings, you have met more than 2 or 3 interlocutors, then it is reasonable to assume that your prospect shows an interest.
Why else would he invest so many resources and time? Review the key moments of all your exchanges.
If you're still working the old-fashioned way, re-read your note-taking. Take the time.
If you're on the ball, it will take you 3 minutes. Focus on the essentials and replay the moment you talked about price in your last conversation with your prospect.
The best salespeople invest 4x more time in preparing for their negotiation meeting.
Structuring your commercial negotiation
1/ Lay the base
"Working with you is one of my top priorities this year and I'm going to do everything I can to make it happen"
Explain to your prospect why working with them is important to you.
They need to understand that you will do whatever it takes to make the sale.
They need to be confident that you will do your best and that the price you offer will be the best possible deal.
Tell him.
2/ Why you can't sell your product
Ready for anything. But there is still a limit. Make him understand this limit.
"I'm willing to do anything to work with you, but I can't jeopardize our business either."
If your prospect makes an "aggressive" request (half price for example) start by apologizing.
"Sorry, I wish I could give you this discount but [...]."
If you have built a relationship of trust, no prospect will want you to jeopardise your business.
3/ Propose alternatives
Noarms, no chocolate.
You can lower your price. However, not in any way. Each reduction must be justified.
Never give in without getting something in return.
This is called the principle of reciprocity (give and take in popular parlance).
This way, you establish in your prospect's mind that he can vary the price according to what he gives you.
If you give up without consideration, you can expect the other person to ask for more.
You can make proposals to your prospect on the following negotiation pillars:
A duration of the POC (or its very existence).
Depending on the nature of your product, you can compromise on the POC ... or remove it.
Throughout the sales cycle, you've assured your prospect that your product will transform their business or the way their team operates. Dare. Go all the way.
"Fine. I can make you this price [X] but in this case we remove the POC".
Commitment period.
You can also play on the commitment period, if your prospect commits with you for five years, you can justify a substantial price reduction.
"I can make you this price, but in this case you'll have to make a longer commitment."
Signature
This technique is particularly effective at the end of the term but not only.
"I can make you this price, on the other hand, do you think on your side it is possible to sign before September 30?"
Thepayment schedule
Whether you are an established company or a start-up, getting an up-front payment, i.e. an equivalent payment for the whole year from the beginning, is a bargain.
Again, don't give in without extracting it from your prospect if it is a priority for you. This is especially true for companies with cash flow issues.
Beware, your prospect may ask for an additional discount in exchange for this direct payment. Again, negotiate.
Again, remember: the prospect is interested in your solution. It is in your best interest to try to get the best deal by making a counter-offer.
Thecustomer testimonial
Especially when your client is known - and recognized - getting a customer testimonial can help you attract other prospects into their industry or ecosystem.
This establishes your credibility with future clients, who are often reassured by prestigious clients. Other leading companies have chosen to place their trust in you.
4/ Negotiate euro by euro
Fight back. Reduce euro by euro.
Whether you sell airplanes or green beans, every euro counts!
Example: if you sell software with a license billing, you will see that the impacts can be very important.
For 50 licenses, each lost euro is equivalent to 50 euros per month or 600€ per year. You only have to give up 10 euros and your losses amount to 6 000€!
This is why it is important to negotiate and only give up in exchange for something else (quick signature, multi-year commitment, etc.).
5/ Turn your back
Just like your prospect. You have a limit. When it is reached :
"Look, I feel terrible about this. Working with you was my most important annual goal, but I have a feeling it won't be for now."
Conclusion
Focus on this exercise.
Every effort your prospect asks of you is very important. Make them feel it.
The golden rule: when your prospect is negotiating, it's a good sign. Don't get overwhelmed.
Keep a cool head and never give in without asking for something in return.
You have all the cards in hand!
Best,
.webp)
