Posts Tagged ‘sales negotiations’

Are Sales Negotiations Overlooked Sales Objections?

Sales negotiations are part of earning the sale.  Yet I am beginning to question if in some instances the reason for the negotiation is because specific sales objections were never reconciled. For example if price requires negotiation, then this might suggest the salesperson failed to do all of her or his homework regarding the budget, the return on investment, etc.

Sometimes to earn the sale or close the deal does require an adjustment to the delivery of the solution.  Had the salesperson explored the urgency dictating the consideration of his or her solution possibly there would not be a need for any sales negotiations?

Of course not all sales negotiations happen because of unreconciled sales objections. Yet I believe the reactionary behavior to engage in negotiation may reflect some miss steps in the selling phase of the sales process.

If for example a new decision maker enters into the sales conversation and starts requesting changes to the offered solution, my question would be “Why didn’t you know about this person?”  One of the most basic questions to ask is “Is there anyone else involved in this buying decision?” Yes sometimes there are surprises, changes within the organization.

These changes can be addressed by this two-fold question during the presentation of the sales proposal. “Has anything changed since we last met or are there any changes coming that may impact this solution?” Usually buyers have a good idea of what is happening within their organization.  If the buyer responds yes, then the salesperson returns to sales fact finding to determine if said change will affect the offered solution.

Depending upon the new facts, the salesperson has the opportunity to reschedule the sales presentation so he or she can address these new facts in his or her sales proposal.  By taking this action reduces future sales negotiations.

From a sales coaching perspective, maybe it just may make sense to revisit past sales negotiations and determine the why behind the negotiation.

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Principles Grow Profits Not Pandering

In the quest to grow profits, some small business owners and sales professionals sometimes engage in pandering at the expense of principles (business ethics). I observed this self serving leadership behavior years ago in corporate sales when I was the inside sales manager. This behavior reminded me of Wimpy from Popeye who was always pandering with his “I’d gladly pay you tomorrow for a hamburger today.”

grow-profitsDuring the ever tiresome bill of material submission process, in many instances the price was not as important as meeting specifications and delivery.  Every proposal (usually thousands to  hundreds of thousands of dollars) involved quick turnaround times and piles of compliance (specifications).  And almost every time another vendor would stretch the truth about delivery or specifications to grow profits.

When sales negotiations began, the outside salesperson would insist for me to match the other vendor’s price or delivery.  This usually resulted in one upset salesperson because I would not surrender my business ethics  just to get the order to grow profits and sales because once one’s principles are comprised, rarely can they ever be resurrected.

Knowing the industry and the manufacturers of the material, I was quite confident that all items met the specification and the deliveries were the most accurate as possible.  Then after we lost the bill of material because the client went with what he thought was the best delivery, more often than not he would come back because the item or items in questions did not meet specification or failed in delivery requirements.

Promise the moon is the equivalent of pandering to “close the deal.”

Now an entirely new negotiation process would begin. By standing on the solid ground of  business ethics, the client would end up purchasing those items in question at a higher price because of  an even more critical rush delivery. Also what happened was the client recognized:

  • Our firm was one of high business ethics and  principles
  • We did  not pander just to get the order
  • Customer loyalty was important to our small business

Each of us as small business owners to sales professionals  probably have our own experiences about how principles grow profits.  We also may have some limited experiences about pandering just to get the order especially when bills must be paid.

Yes it is hard to compete against those who engage in pandering at the expense of principles. However, standing firm on one’s business ethics is always the better leadership behavior than being tempted to “be like everyone else, because everyone else does it.”

Would you like to increase your business results by 20% in 60 days?

Would you like to discover the problems within your sales process?

Then scheduled a no risk 20 minute Business Growth Accelerator Session with Leanne Hoagland-Smith at 219.759.5601219.759.5601 CST to discover how you can challenge and change your status quo.

Consider giving her a call especially if what you have tried has not worked and you are ready to challenge and then change the current status quo.

 

 

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