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Price negotiations.
How to neutralize customer objections
In every sales process, whether we want it or not, we will eventually have to make a price agreement with the customer.
This is an indispensable part of any trade call during which we finalize transactions. Closing sales is precisely the stage of our conversation, where we should make price arrangements. Let's focus on this part of the sales conversation.
How do we close transactions at the most favorable sales prices for us?
Have you ever heard of the BATNA rule?
BATNA (best alternative to negotiated agreement) is used to plan the negotiating results. It shall be used in various negotiations to determine the purpose of the talks. In english, it is "the best alternative to a negotiating agreement". In preparation for the talks, it is recommended that the negotiating parties set their claims at a minimum level. In other words, the point is to establish its maximum concession to which a party agrees in exchange for an agreement. It is also recommended that we do not go below our previous assumptions during the talks. Too early concessions will certainly be detrimental to the negotiator and often misperceived by the other participants in the negotiations. This method is often used in complaint, employee and all business negotiations. In my opinion, it is too rarely discussed its contribution to price negotiations.
"The application of the BATNA rule
in setting the objectives of price negotiations
is relevant for the entire sales process"
The application of the BATNA rule in setting the objectives of price negotiations is important for the entire sales process. How can we set our sales and negotiating goals using this rule in practice? At the outset, it is necessary to set the first price that we will offer. At the very end, we set the minimum price, which we accept by finalising the sale.
Another very effective technique, used in the price negotiation stage, is to hide your own interests. In this method, it is essential, first, to formulate all potential negotiating parameters in the vicinity of the price. Why is this so important? Today's trade very often has products like each other or the same, except at different prices. For example, the same pen of a renowned manufacturer can be offered in two different places at completely different prices. Equally often there are situations where both offered products are only seemingly the same – the differences are in the details. When two of the same products are available, even at the same prices, but at completely different outlets, there are still different parameters in around prices what are worth highlighting and subjecting to the negotiating area.
"The techniques of negotiating concessions
consist in the fact that any resignation
from the pre-presented conditions should force
other side of negotiation to give us also a concession in exchange”
Recommended word phrases are, for example:
"I agree well, but in return I expect ..."
"I can agree to your expectations under the following condition... "
"I am able to waive my claims, but in return I expect ..."
More information about price negotiations you will find in book:"The art of selling in practice: practical training guidebook" was written by Krzysztof Czupryński
Sales Power School ® sales trainings
allow you to develop your ability
to overcome price objections in a very practical way.
Participants of our trainings develop
the ability to sell products at prices higher than competitors.
