Negotiation is one stage in the sales process where most of the sales reps dread to go. It is like an unwanted flood that cannot be avoided. The only thing you can do is face it wisely. For closing a deal in the negotiation, you need to take the right steps by being persistent and determined. Till now, you have been a consultant and guided the prospects. Now it’s time to change the gear and become a smart negotiator.
“A negotiator should observe everything. You must be part Sherlock Holmes, part Sigmund Freud.” — Victor Kiam
Customers are getting smarter and doing all they can, to get what they want. They can throw the curve-ball at any moment and turn the situation. Sales reps fall into the bargaining trap during such situations and lower their prices. Business profitability suffers due to this. Quick but right decisions are crucial in such scenarios.
There is no point stretching the negotiation for long; you need to close the deal quickly. But while doing this, you need to ensure you don’t take any step that would cause trouble later.
For successful business negotiation, it is necessary to consider the benefits of both the buyers as well as the sellers. There needs to be a balanced proposal between the two for having a win-win agreement.
Effective ways to close the deal in negotiation
Let’s face it, closing the deal in negotiation is a challenging task. But it surely isn’t an impossible one. If you panic, you’ll make mistakes. After reaching so close to the finish line, you surely wouldn’t want to lose the deal. So, stay calm and negotiate a deal smartly.
This is the stage where your convincing skills are tested. You need to stay focused and strike the right chords. Using effective closing techniques and negotiation tips, you can quickly close the deals in negotiation. But before anything else, first, prepare yourself for successfully negotiating with the reluctant client. It is difficult to win a game without preparation.
Press the rewind button and reflect over your past sales using various sales reports. If you have recorded your sales calls, then listen to them and find out what are the common negotiations that you normally face. Create a list of these negotiations and find the best possible ways to deal with them.
The longer the deal is in negotiation, the more difficult it gets to close it. So, set clear benchmarks and deadlines while preparing for the negotiation process. Define an absolute bottom line of what you are willing to settle for. The final limit should be clear in front of you to avoid getting manipulated by the customers.
Ensure you don’t cross that bottom line under any circumstances. Once you are prepared, you can confidently go forward and negotiate the deal.
Here are a few effective tips for closing the deal in negotiation:
1. Understand the intent and position of the client
Yes, you are in a hurry of closing the deal. But think about your clients as well. Investing a huge amount of dollars in a solution or service is a big decision. If the client is not accepting your deal, then there might be some reasons behind it.
Understand the barriers. Find out what’s preventing your clients from moving forward. What’s the root cause of the negotiation.
Are they unsure about your product or they find the price too high or there is some other reason?
Most of the times the prospect hides the true concern. You need to question them to uncover their real concern. If they are stuck at a certain point, then try to find out the intent for sticking on that point. Listen to their justification. Put yourself in the customer’s shoe and ponder over their justification to see if it is valid. If it is valid, then make necessary adjustments for coming to an agreement.
2. Avoid unnecessary delays
Sometimes negotiation is prolonged for unnecessary reasons. Even if the major concerns are addressed, few prospects don’t close the deal. They use various stalling tactics to postpone the purchase.
“Delay is the deadliest form of denial”- C. Northcote Parkinson
The more you delay, the difficult it gets to close a deal. Ask the customer if everything is settled. If something is holding them back, then clear that out at the very moment.
Be careful while fulfilling the demands of the clients. Know when to stop. Nibbling is one common negotiation technique that most of the buyers have mastered. They are the ones who are going to pay, so they keep demanding for more. Buyers will try to get maximum things by nibbling, but as a seller, you need to draw the line at the right time.
See if there are any genuine issues and try to address them quickly. If you think you have done everything needed from your end, then take a decision and try to conclude the negotiation as soon as possible.
3. Create a sense of urgency
Good negotiation closing techniques can help in winning more lucrative sales. Creating a sense of urgency is one such negotiation technique that can help in closing the deals quickly. Who wouldn’t like to capitalize on a great deal? Customer acts quickly when they have an excellent opportunity in front of them for a limited period.
Try to make your offer appealing to the buyers. Show them what they are missing out on. You don’t necessarily need to reduce the price to win a negotiation. Emphasize on the unique benefits that you can bring them. Convince them that the offer just stands for a short amount of time. They need to act immediately or risk losing out on something great.
4. Invent options
When the client is smart and reluctant, then you need to wear the creative hat and think innovatively. Explore ways to invent more options to attract the customer and influence his buying decision.
Put the customer in a dilemma by presenting two compelling situations. For doing this, it is necessary to have enough information about the client. You should be aware of his strong and weak areas. The scenarios can be built around those weak areas. Offer advantages in both the scenarios and ask the customer to make a choice. You’ll win the negotiation as soon as the customer commits to any one of the scenarios.
“Know what your customer wants most and what your company can do best. Focus on where those two meet”- Kevin Stirtz
5. Bring in your satisfied customers
Try to put yourself in a stronger position for winning a negotiation and closing the deal.
- Present statistics and facts.
- Combine your statements with proof.
- Provide evidence of what you have done in the past.
- Make an impact with your success stories.
- Show them the cases studies and reviews of your satisfied clients.
- Explain how it has helped your existing customers.
- Justify your price with the value of your product.
- Give them reasons to close the deal immediately.
If needed connect your potential prospects with your existing customers. Let them speak to your customers to understand its benefits. Do all that you can in your limits to create a mutually beneficial business proposal. But if you find the deal is no longer profitable, then quit chasing it.
You might face some difficulties while closing the deals in negotiation, but it surely isn’t an undoable task. You just need to understand the client’s situation, use the right negotiation techniques and create a scenario that’s beneficial for both the parties. Don’t be too pushy.
Try to keep the best deal forward. Even ensure that the negotiation doesn’t go on for a long period. Follow-up with your clients. Track your follow-up emails to see if the customers are reading or ignoring your emails. Quickly come to a common conclusion and end the negotiation. Efficient management of deals and its closure can increase your sales and profits.