So, whether via email or in person, it’s critical to be careful about stating your price or exposing the scope of work and deliverables to the wrong person. Once these details are known, you most likely won’t be able to back out when negotiating with a key influencer.
To avoid this situation, it is crucial to make sure that you approach the person who has the decision-making power directly, even if this means extra effort in the research and contact process. By negotiating with the right person, usa real mobile phone number list you will significantly increase your chances of reaching a mutually beneficial agreement.
2. Probe the prospect by letting him speak first
A big part of being an effective negotiator is simply reacting to what your prospect is saying and looking for valuable information in between. Allowing them to speak first can help you identify underlying challenges that clients have.
Often in the rush of selling, salespeople end up offering discounts or expanding the scope of work before hearing the prospects' point of view. But, maybe the problem wasn't related to price at all! You can't be sure until you let them take the lead.
Probe the prospect by letting them speak first
While it's important to listen, if you find yourself in a situation where the client asks for a discount without having an alternative price in mind, you'll need to come up with one yourself. In such a scenario, always negotiate to protect your margins. Even before the negotiation begins, have two or three pre-approved prices ready and present them one by one.
After the client hears your final offer, they may propose an even lower price than your lowest rate. Don't reveal your position just yet to close the deal if you don't have approval to accept the client's proposed price. Keep them in suspense by asking for permission to respond within 24 hours - always provide a deadline and stick to it.
Within this time frame, seek input from your superiors, respond to the client by saying yes to their offer or offering a slightly higher amount, and then wait for their response. By following this approach, you will be able to effectively navigate the negotiation process and reach a mutually satisfactory agreement.
Finally, keep in mind that negotiators end up remembering only 50% of what their counterpart said, so if possible, take extensive notes or ask a colleague for help. Doing this ensures that you don't miss any vital information.
3. Quote a single-figure discount, if necessary
If, during a price negotiation , you have the opportunity to reduce the cost quoted to the customer, never extend a discount range.
For example, avoid statements like, “I can reduce the price by 10 or 15%.” Now, the customer might have agreed to 10%, but the moment they learn that 15% is also possible, why would they choose the former option?
Avoid middle-of-the-road pricing at all costs. Not only does it show a certain level of desperation on your part, but by closing the deal, the person on the other end might also think that you might be able to reduce the price even further.
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Quote a single figure discount
4. Explain the value of the product through numbers
When creating a sales plan , you need to quantify the value of your product and then use that to negotiate a better price. Through numbers, you show your potential customer what they can gain over time by investing in your offering now.
Remember that price is always related to value, so it's crucial to take negotiations beyond the money. When you use numbers to show your prospects the true value of your offer, it's likely to change their perception of your quote.
Additionally, sellers often include a bunch of extra perks that they don't talk about when explaining the quoted price. Make sure your prospect knows about the extra services you're providing.
5. Take note of non-verbal cues
If you think the art of negotiation lies solely in your words, think again! Non-verbal cues, such as your body language, tone of voice, whether you trembled or stuttered, are equally important.
Expressing confidence is key when it comes to conducting a sales negotiation. So, stay calm and patient when approaching your prospect, as they can see the cracks in your armor if you have any.
Try to think of yourself as a partner willing to provide services to the potential client. Firmly maintain your position during a negotiation. Remember that at this point, they are not yet your client, and you are largely on equal footing.
Being too salesy or too submissive will only invite the other party to be more aggressive with you. If you can, keep your nerves in check. By doing so, you've already won half the battle of the negotiation.
6. Use the prospect's timeline as a negotiation tool
Your prospects also have a deadline to close a deal, so they'll just play hardball until the time comes closer. If you can get a rough idea of what their deadlines are, you'll be able to negotiate accordingly. Let's say they offer you a counter-price that you're not happy with, wait a while, let the deadlines tilt in your favor, and then re-offer a price.
Use prospect's timeline as a negotiating tool
You'll also have a deadline to close a deal. However, try not to let the prospect know about it. Be careful when answering the prospect's questions that revolve around you to avoid accidentally revealing your deadline.
