How Sales Professional can manage the Negotiation Process ?

By being patient...If a sales person is not patient then I the buyer will will wait till he loses his patient and makes the deal.

If you are impatient in a negotiation you will not be able to negotiate successfully. So don't rush to make the wrong deal..

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One should also try to get into the price and value that the competitor is quoting. At todays time when customer have better choice at low price, the chances of drop in sales are more. 

Sales person should try to make themselve aware about the competitiors weak areas. Try this to take away customer just to prioritize the pricing among different vendors instead of better product and services. Your competitor might have quote less then you becuase he might be comprimising on some side. Try to showcase your extra advantage and then give a justified discount to the customer. 

if you would like have small negotiation process, if your company allows you to show the old invoices which you raised to the other customer then please show it to the prospect. I personally feel dont increase and decrease the price just for the sake of negotiation because it may give false impression to the customer. say your fixed price in upfront and ask there budget.

If it meets your margin, then its worth of negotiating,otherwise its waste of time

this helps you to make your selling cycle short

Comments are welcomed, karthykb@gmail.com

Regards,

Karthick

Any negotiaton process, never reduce the price. There are other tricks, but do verify where you stand in the deal as you need to be very clear that in the sale transaction occuring - price is not the issue e.g. an ERP implementation.  The following is not valid if your service is selling a box of moserbaer CDs.

• Add a few sweeteners or explain why he is already getting a good deal as he is a "prized" customer. This could be an  upgrade a few months down the line or some onsite resource for extra duration at their site without technical fees attached.
• Arrange a telecom with your "boss" and your "boss" yells at you for talking price discount without informing him, and asking him to report to him in the evening (two can play games). You can visit this client after a couple of days and get a better picture, after telling him how you still managed to keep the deal in place but to keep price related issues in the background for a more convenient time as the "boss" was in a bad mood since he got fired on some other proposal during the day.

Patience is always good, and not getting excited on a deal is also important. The best thing to do is never to mention price early in the process, if user wants work to ascertain his budget first, and at the most inform him on normal   price list tags, and rough cut on implementations.

You can also give him more presentations why you are a better vendor and hold on the price, maybe the buyer need to justify your price to his Finance Manager.

A good scare is to mention that the extra price is for ongoing support and retionion costs of key team members of implementation period, through bonuses etc. of a contract, hence reduction on this could hit quality of SLA clause implementations

If you want to close the sales and make profit for your organisation. Never believe what your buyer is saying. He/she might just be bluffing and you might land up giving a certain amount of discount to them...

You can negotiate discounts, but as long as you get value in exchange,  such as: a larger order, an up-front or COD payment or an open-order contract.

During negotiation the Sales person would be asked to give their best price so that the buyer can buy what he/she is selling. Once the seller gives his best price he will be shocked to find out that the buyer wants more. Nothing can be done in such situation, So to overcome this, if you can drop the price by 10%, start wilh 2% , 3% and so on...who knows you might end up selling at just 4% or 2% instead of giving 10% reduction in price.

If ypou know your MAV it becomes easy to negotiate with your customer. It will help you safeguard your channel contributors and also give you the edge to navigate the negotiation process limiting it to the process of your product only. Comparisions should not be a deterrent at all. The fact that YOUare seating in front of the customer shopuld be pounded through the customer effectively.

Remember that people come and go but the rpoduct / brand will remain if its good and has been accepted over a period of time. A wee bit of history, the continuous efforts of the professionals managing the attributes and the FACT that you have been considered should make the process a lot more easier.

They say who wins a negotiation SMILES. A good negotiation end of the day according to me should make both the parties SMILE. During a negotiation either party is playing part to do justice to their principle so a good sales person according to me is the one who does HONEST CONSUTATIVE SALES. For price negotiations, ensure to meet all the decision makers on the table. Customer will always decide the deal based on your approach, your relationship and your product. Always have a long term, propose alternates to make the session conclusive and decisive. If you show desperation, you will always give out in other words be aggressive but never be desperate. The tactics is BE PATIENT and IMPROVISE, always express your seriousness and excitement about the opportunity. I am not an expert but this is just my opinion. Have a great negotiation.

Buyers are attending various seminars to improve their negotiation skills, which means that the seller will lose during negotiation and buyer will be the deciding at what price he/she can buy a product. So a constant improvement in the skills of a seller is needed and how to get that is the question.

How do you get it ?? Simple..Ask the best negotiator how he/she does. ask more and more questions to your customer so that you know what excatly they want and how badly they want your product...

prepare in advance ur minimum walkway,no. of variables u can discuss on,start high concede slowly,dont say yes immediately,donot raise expectation of other party by giving unnessecary discount,donot become impatience listen to other party also dese are some of d points which we can incorporate in negotiation process.

Well one should never forget  that the last process to seek the order is to go for negotiation and the obvious questions being put forward. As a part of sales one should make good relationship with the customer and try to see that the customer gets good service so that your weightage is always there.Sales people get orders even when there price is higher because no one want to compromise on services and quality. Quality is always associated with brand image gained over a period of time. Even when you are prices are higher company is reluctant to place order to others since they are always assured working with you will be troublesome. Ofcourse you need to know your competitorss weakness and highlight them with references. The more you remain in negotiation it means that the customer is willing to go with you so be patient. Please be aware that prices cannot be negotiated for the sake of price it should be negotiated over and above qulaity, commitments, past relationship. Anyone who wants to break the relationship will always come with better pricing but then its not good to break a existing bond and start again with whom you are not sure. try to negotiate on delivery, Services & Training but less on price. So in totality give customer confidence that you are a partner in their technology and always with them for a win win situation.

Before getting into the negotiation process, I usually prepare a comparative analysis between my product and a competitor's product. This typically states what additional features I have in plate as compared to the competitor.

Now, my conversation is build on showing the importance of those "EXTRA FEATURES" that my product has and their role/importance.

This usually helps me overcome the negotiation process.. I draw a clear picture.. If the discount prevails, the "extra features" cannot be delivered and then I throw the ball stating that without the "extra features" the product will not make complete sense!

But again, this is one way... I completely support the other mentioned ideas as well!