Sales Closing FAQ 1: Pricing Negotiation in a Sales Presentation

Negotiation skill is very essential for sales professional.  Extra discounts often eat up sales professionals’ commissions.  Here is a list of things we shall do during the price negotiation stage of a sales presentation:

- Understand Your Prospective Customers’ Motives: Everybody wants a better deal! Let’s fact it.  Prospective customers often try to negotiate down the price by talking about all sorts of negative things about your products and services.  Or, they would try to compare your products and services with a competing offer.  As sales professional, we need to identify whether it is just a game the prospective customers are playing with you to get a better price.  Remember, if your prospective customers are negotiating with you about your prices, it usually means that they have already gone to the stage where they are interested in buying your products and services.
- Shift the focus to quality: Try to make your prospective customers understand the theory of “you get what you pay for”.  And then, go on and talk about your product and service quality.
- Shift the focus to the details: Try to make your prospective customers to switch gear and talk about how much better your products and services could help them solve their problems.  And then, you go on and talk about the details.
- Compare the difference: Prospective customers would often come back with a competing bid and ask for a better offer.  In this situation, what we can do is to compare the difference in price and the extra benefits the prospective customers would receive.  One example is that I was telling this lady that I got an offer of US$1000 for the exact product across the street.  I was trying to get a better deal from this lady and I understood that this lady offers better product.  She then addressed to me that for only US$100 and I shall enjoy a list of extra benefits.  I was convinced.
- Divide up a huge cost into a monthly or daily figure: This is a very common technique applied in the real estate and insurance industry.  What these sales professional do is to divide up the cost into a monthly and daily figure.  This helps change your prospective customers’ perspective and perceived risk when making a purchase.
- Always save up some extra margins or offer: One important trick is to save up some extra discount offer.  Do not offer the best deal to your prospective customers first.  Offer extra add-on services for free to your prospective customers at the end.  This can always solve the problem.

The key really is to make sure you satisfy your customers’ concerns about pricing quickly and get back to the closing.  Remember the guidelines above and you will be fine.

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