Negotiating Buyer Concerns Chapter 13 Negotiating Buyer Concerns

Six-Step Presentation Plan Step 1-Approach Step 2-Presentation Step 3-Demonstration Step 4-Negotiation

Step Four Anticipate buyer concerns Plan negotiating methods Initiate win-win negotiations

What is Negotiation? Working to reach an agreement that is mutually satisfactory to both buyer and seller It is a win-win relationship strategy

Planning for Formal Negotiations Gather information before the negotiation Decide team versus individual negotiations for both seller and buyer Understand the value of what you are offering Determine your goals and financial objectives Prepare an agenda Review adaptive selling styles Prepare a negotiation worksheet

Conducting the Negotiation Session Understand the problem Create alternative solutions that can add value (often referred to as logrolling) Periodically review acknowledged points of agreement Do not make concessions too quickly Timing and the Pareto Law (80% of your results are generally agreed upon in the last 20% of your time)

Common Types of Buyer Concerns Need for the product About the product or services Related to source Related to time Related to price (most common concern)

Concerns About the Product or Services The product or service is not well established The present product or service is satisfactory

Positive Ways to Deal with the Source (Loyalty) Objection Work harder to identify problems your company can solve with its products or services Point out the superior benefits of your product and your company Work on recruiting internal champions to build more support for your message Try to stay visible and connected

Specific Methods of Negotiating Buyer Concerns Direct denial Indirect denial Questions Superior benefit Demonstration Trial offer Third-party testimony Postpone method

How to Deal with Price Concerns Do clarify price concerns with questions Do add value with a cluster of satisfactions Do not make price the focal point of your sales presentation Do not apologize for the price Do point out the relationship between price and quality Do explain and demonstrate the difference between price and cost

General Strategies for Negotiating Buyer Concerns Anticipate and forestall buyer concerns Know the value of what you are offering Prepare for negotiations Understand the problem Create alternative solutions Find some point of agreement Do not destroy your relationship strategy with anger

Buyer Tactics Budget Limitation Take-It-or-Leave-It Let-Us-Split-the-Difference If . . . Then Sell Low Now, Make Profits Later