13 Selling Today Negotiating Buyer Concerns CHAPTER 10th Edition Manning and Reece 13 Negotiating Buyer Concerns

Six-Step Presentation Plan Approach (Chapter 10) Presentation (Chapter 11) Demonstration (Chapter 12) Negotiation Close Servicing the Sale 

Negotiation Defined Working to reach an agreement that is mutually satisfactory to both buyer and seller Negotiation is a process Ability to negotiate problems or objections is a most effective way to create value

Negotiation: A Win-Win Strategy Personal selling is not a “we versus they” process If trust is strong, negotiation becomes a partnership to work through, if not, negotiation becomes combative Seek to maintain long-term relationship

Common Types of Buyer Concerns Customers may have concerns related to: A need for the product Product itself Source of the product Pricing Timing

Need for Product Conditioned response: “I don’t need the product.” Sincere need resistance a great challenge Not convinced of your product’s benefits Best way to overcome—prove your product is a good investment

The Product Itself Product not well established Product will not be popular Associates did not like the product Present product/system is satisfactory

Source of Product Ways to overcome include: Identify how product solves problems Superior benefits of your product Illustrate profits from adding second line Place trial order to evaluate merits Recruit champions inside buyer’s firm Stay visible and connected to client

Price Concerns: Trained Buyers Buyers trained in negotiation Budget limitation tactic Take it or leave it Split the difference

Price Concerns: Low Price Strategy Transactional buyers seek low prices Empowered salespeople able to apply various discounts Downside, lower profits and lower commissions

Dealing with Price Concerns Do clarify price concerns with questions Do add value, stress service Do not make price focal point Do not apologize for the price Do point out price/quality relationship Do demonstrate difference between price and cost Do not make concessions too quickly

Price Iceberg Price is only the tip of the iceberg; remind customer of value-added factors below tip FIGURE 13.3

Concerns Related to Time Also known as “the stall” Usually customer does not perceive benefits of buying now—or sees both positive and negative in product

Customer Objections Customer objections are often requests for more information to justify buying decision TABLE 13.1

Negotiating Buyer Concerns Know value of your offering Prepare for negotiations Understand the problem Create alternative solutions Find points of agreement Know when to walk away

Use a Negotiations Worksheet FIGURE 13.5 See the text for the complete figure

Specific Negotiation Methods Direct denial Refute prospect’s opinion or belief Be firm, not offensive, think win-win Indirect denial Acknowledge prospects as partly right Feel-Felt-Found “I understand how you feel” “Others have felt that way” “Until they used the product and found it quite easy and reliable”

Specific Negotiation Methods Questions Convert problem into need-satisfaction question “How would a 30 percent reduction in breakdowns affect your company’s profitability?” Superior benefit Acknowledge prospect has valid concern and focus on superior benefit Superior benefits should outweigh specific customer concerns

Specific Negotiation Methods Demonstration Discuss competitive advantages of your product Demonstrations overcome buyer skepticism effectively Trial offer Prospect tries product without purchase commitment

Specific Negotiation Methods Third-party testimony Neutral third-party testimony adds credibility Almost never triggers client argument Postpone method Postpone answers to client concerns until later in dialogue Explain why you want to postpone

Application: Digital Electronics Go to a consumer electronics store and ask for help with laptop/notebook PCs Raise a series of concerns and note how salesperson reacts Price is too high Heard that brand “XYZ” is bad Maybe it’s not time to buy