Article Contributed by Dennis Hung
Business owners are used to wearing many hats. This is likely why many of them assume the role of their company’s top salesperson. After all, they are the face of the company and the most likely to approve special deals and below market prices. However, what does it take to become a top salesperson? Better yet, how can a business owner assume this all-important role and what strategies should they employ when negotiating with customers?
- Handling Roadblocks and Objections
When it comes to sales negotiation training, few approaches work as well as preparing for the worst. Granted, it’s important to remain positive, and this is by no means a declaration that you should expect to lose or think negatively. That isn’t the intention here. However, the best salespeople have a way of immediately reacting to customer objections and roadblocks.
So, why are they so adept at responding to these customer stall tactics? Well, for the most part, they’ve practiced their responses long before they get on the phone with a customer. They can anticipate what the customer will say because they’ve gone through multiple scenarios and develop a series of readymade answers.
Your customers will try and stump you. They will try to throw you off guard. They’ll claim your pricing is too high, your products aren’t good enough and that your competitors are always one-step ahead of you. However, if you know what they’re likely to say before they say it, then you’ll be better positioned to handle these objections and move the discussion forward. Be prepared by doing your homework well in advance.
- Using “what if”
Part of being prepared for negotiations means to anticipate the kind of concessions your customer is likely to ask for. In this case, you need to employ the “what if” scenario. Think of all the possible requests your customer can come up with and develop a list of requests of your own.
For instance, if your customer requests a lower price, then you might request a higher volume or at least a commitment on their part to purchasing a larger volume over time. A good rule of thumb is to create a list of high-value customer requests and a list of your own high-value requests. As much as possible, try and match what your customer is asking for with an equally-important request of your own. After all, customers expect some push-back when they negotiate with vendors so don’t be a pushover.
- Remain Silent
Surprisingly, silence does speak volumes when it comes to closing a sale. Unfortunately, far too many salespeople are uncomfortable with silence. They are convinced they have to speak for the customer. The next time you make a final offer, stay quiet and don’t say anything until your customer does. It works.
- Defending Pricing
If you give your customer a price they’ve never received from their own vendors, or aren’t likely to get anytime soon from anyone else but you, then you’re well within your right to defend that price. Most salespeople falter here. They think it’s the customer’s right to use their pricing against them. It isn’t.
As a business owner, be prepared to defend your pricing. Make it clear that your customer can’t just shop your price. Success in negotiation is about having respect for each party and standing your ground. Your customers will respect you more if you explain to them how much it takes to give them below market pricing.
- Role Playing
The only way to get better at negotiation is to role play multiple scenarios. In fact, negotiation is ultimately about how two parties reach an agreement, one both sides are satisfied with. This ultimately involves a lot of practice. Ask an employee to play the role of a customer and have them give you an honest assessment of your performance. It will help you understand how you come across, and it will give you invaluable insight into how customers think and react when you’re in the middle of a negotiation.
Business owners are most often their company’s number one salesperson. As such, it’s important to use all of these aforementioned strategies and practice with likeminded individuals and professionals. It will help you better understand your own strengths and weaknesses when negotiating.
About the author:
Dennis Hung is an entrepreneur and product analyst specializing in mobile technology and IoT. He’s spent most of his career consulting for businesses in North America.