1. 13 Selling Today Negotiating Buyer Concerns CHAPTER 10th Edition
Manning and Reece 13
Negotiating Buyer Concerns

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

3. 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

4. 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

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

6. 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

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

8. 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

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

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

11. 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

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

13. 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

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

15. 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

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

17. 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”

18. 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

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

20. 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

21. 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