There is a disturbing trend that I have heard from the companies I work with. And it starts when prospects start asking for a lower price or a “deal,” or a referral before committing, or a free trial of demo products or services.
The problem I hear is that sales reps, both newer and more experienced reps, drop the price right away or offer a trial, or hand over referrals thinking this is what will close the sale.
If you’ve done it yourself, then you’re all too familiar with the sickening feeling of “giving away the store” only to have the potential customer refuse to do business with you. It is not an effective sales strategy …
The answer is to learn the fine art of negotiation. In short, the basic point of negotiation is that you both have something that the other party wants, so you give to get. And this is the problem for most sales reps: They just give away things (like a free trial or a lower price) without receiving anything in return.
Here’s how to change that. Let’s do a quick role play:
Example one:
Potential Customer: “Do you offer a free trial?”
Representative: “We generally do not offer a ‘free’ trial, but there are a few options that I can offer in terms of a free month at the beginning of your contract with us. I would need to speak to my manager about this.
“Before I do, I know he will want to know that you are ready and ready to go before putting anything together. So let me ask you …”
Now qualify for the budget, deadline, and start date before offering that free trial.
Example two:
Prospect: “That price is too high. Can we buy half a position to prove it?”
Representative: “That’s something I would need to get approval on. Just out of curiosity, if I take this to my principal and he approves, would you be ready to give us the go-ahead and start service today?”
Here again is the basis of negotiation. Never give away a free trial or lower the price without first getting something from your prospect in return. In this case, a compromise.
If they say they are willing to compromise, you can get approval from your manager. If they say they still need to think about it, it’s up to you to keep closing and isolating the real objection.
Example three:
Potential customer: “I need a referral.”
Representative: “I would be happy to provide you with one. However, before I do, I want to make sure that if, after speaking with them, you are ready to start working with us. As you can imagine, all of our clients, like you, are busy and they don’t want people to take their time if they are not convinced of our solution.
“So let me ask you this: What price are you willing to commit to if the benchmark works?
“And how about a start date?” etc.
Again, you need to get something from your potential customer before you give them something. This is the negotiation.
There are many advantages to working with your closing in this way, but the most important is to verify that you are dealing with a buyer and not someone who is just a ‘maybe’. You know as well as I do that those “regular” prospects hardly ever buy, and by giving in to them, you grow weaker and weaker as a sales rep.
So try the techniques above and start negotiating instead of giving up control of your sale.
You will close more sales and feel better about yourself!