1. CHAPTER 13
Negotiating Buyer Concerns 1

2. Learning Objectives
Describe the principles of formal negotiations as part of a win-win strategy
Describe common types of buyer concerns
Discuss specific methods of negotiating buyer concerns
Outline methods for creating value in formal negotiations
Work with buyers who are trained in negotiating

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

4. Six-Step Presentation Plan
FIGURE
13.1

5. 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

6. 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

7. Strategic Planning Leads to Actions
FIGURE
13.2

8. 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

9. Planning for Formal Negotiations
Prepare an agenda
Review adaptive selling styles
Use the Negotiations Worksheet

10. The Negotiations Worksheet
FIGURE
13.3

11. Conducting the Negotiation Session
Understand the problem
Create alternative solutions that can add value
Periodically review acknowledged points of agreement
Do not make concessions too quickly
Be mindful of your timing (Pareto Law)
Know when to walk away

12. Common Types of Buyer Concerns
Customers may have concerns related to:
Need for the product
Product itself
Source of the product
Timing
Price

13. 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

14. Concerns About the Product or Services
Product not well established
Present product/system is satisfactory

15. Concerns Related to the Source of Product
Positive ways to overcome include:
Work harder to identify how product solves problems
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

16. 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

17. Concerns Related to Price
Price is one of the most common buyer concerns
Skillful negotiation in this area is required
Price objections may be nothing more than an excuse
To most buyers, value is more important than price
Position your product or service with a convincing value proposition
Customers who perceive added value are less likely to object on basis of price

18. Specific Methods for Negotiating Buyer Concerns
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”

19. Specific Methods for Negotiating Buyer Concerns
Questions
Convert problem into need-satisfaction question
“What would a 10 percent reduction in employee turnover save your company?”
Superior benefit
Acknowledge prospect has valid concern and focus on superior benefit
Superior benefits should outweigh specific customer concerns

20. Specific Methods for Negotiating Buyer Concerns
Demonstration
Discuss competitive advantages of your product
Demonstrations overcome buyer skepticism effectively
Trial offer
Prospect tries product without purchase commitment

21. Ask Positive Questions
In their best-selling The New Conceptual Selling, authors Heiman, Sanchez, and Tuleja recommend using questions framed in a positive way rather than negatively.
See the Website

22. Specific Methods for Negotiating Buyer Concerns
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

23. Creating Value During Formal Negotiations
Do clarify price concerns with questions
Do add value with a cluster of satisfactions
Do not make price focal point
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

24. The Price Iceberg
Price is only the tip of the iceberg. Remind customer of value-added factors below tip
FIGURE
13.4

25. The “Winner in the Short Run”
The cavernous Airbus leads on seat cost per mile, but the much lower price per trip of the CRJ200 makes it a winner in the minds of some buyers.
FIGURE
13.5

26. Working with Buyers Trained in Formal Negotiation
Budget limitation tactic
Take-it-or-leave-it tactic
Let’s-split-the-difference tactic
“If then” tactic
“Sell low now, make profits later” tactic

27. Sales Negotiation Training
Acclivus offers the Acclivus Sales Negotiation System for salespeople who work in the business-to-business sales arena.
See the Website

28. Sales Negotiation Training
Karrass Limited offers the Effective Sales Negotiating Seminar
See the Website

29. Key Concept Discussion Questions
Describe the principles of formal negotiations as part of the win-win strategy
Describe common types of buyer concerns
Discuss specific methods of negotiating buyer concerns

30. Key Concept Discussion Questions
Outline methods for creating value in formal negotiations
Describe how you would work with buyers trained in formal negotiation

31. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
Copyright © 2010 Pearson Education, Inc.  
Publishing as Prentice Hall
13-31