7 Common Sales Negotiation Mistakes to Avoid
If there's one aspect of their role that no successful sales manager or salesperson can afford to get wrong, it is the conducting of effective sales negotiation. In an age where competition between businesses is fierce and information is more readily available to the customer than ever before, it is vital that salespeople have the skills and knowledge necessary to negotiate and close every sale.
Business skills training specialists Maguire Training offers a range of courses which cover the sales process from start to finish. Negotiation Skills shows delegates how to employ a range of negotiation techniques and provides them with the knowledge and skills they need to bring negotiations to a successful conclusion.
For the new or unwary salesperson conducting sales negotiations can be a challenging proposition and mistakes can be made which may jeopardise a potential sale. Here Maguire Training highlights 7 common sales negotiation mistakes to avoid.
1) Negotiating with the wrong person
It's too late once you're halfway through sales negotiations, to discover that the person with whom you're conducting business isn't actually empowered to make the purchasing decision, but must refer it to someone higher up the pecking order. Always ensure that you're negotiating with the person who can approve the purchase.
2) Failing to prepare properly
In order to enter a sales negotiation in the strongest position it's crucial not only to know your product or service inside out but also to have thoroughly researched the buyer. Doing so will ensure that you can pre-empt and overcome potential objections, answer any question they raise and have an insight into their purchasing processes, budgetary constraints and so on.
3) Lacking a strategy
For a negotiation to conclude in your favour, it's necessary to have a sales strategy which takes you from a defined opening point to closure and incorporates parameters which allow for negotiating flexibility but cannot be transgressed.
4) Not fully exploiting your strengths
By the time you've reached the sales negotiations, your customer should already know that your product or service can address their needs, but there may be other persuasive selling points that have not yet been raised. Take any opportunity to explain why your proposition is unique and better than anyone else's.
5) Not having a 'value add' up your sleeve
Bargaining is an integral part of sales negotiations, and customers invariably appreciate receiving added value or 'something for nothing'. The ability to produce a 'sweetener' in the form of, for example, an extended product warranty or additional aftercare, can help to win the final sale.
6) Clinging on when hope of a sale is lost
At the sales negotiation stage, it's perfectly possible to reach an impasse whereby the customer is demanding more than you can offer or has simply changed their mind or got cold feet. The savvy salesperson will recognise the point at which attempting to press on with negotiations is fruitless or may potentially damage an existing business relationship and will accept that, on this occasion, the sale is lost.
7) Compromising your negotiating strategy purely to win a sale
Knowing when to walk away is vital to any negotiation strategy. Allowing the customer to beat you down to an unprofitable price just so that you can say you've won the deal is definitely not good for business.
Don't fall foul of the pitfalls inherent in sales negotiations. Maguire Training can help sales managers and salespeople improve their existing skills and gain new ones for greater sales success. For salespeople who can't spare the time to attend formal on-site training Negotiation Strategies is also available in an online training format which can be accessed at any time and from any location via Maguire Training's convenient E-learning platform.
