This is a question I get asked far more frequently than I would expect, so it’s time to share what I tell individual salespeople when they ask me this.
Yes, there are times you should not negotiate, but typically it’s not due to what people expect.
Here are the 7 things you need to know:
1. Never negotiate if what you have is in short supply.
Negotiating is a form of trying to maximize sales vs. supply. If you can sell it all without negotiating, then don’t negotiate.
2. Never negotiate if you have not first attempted to sell.
Sell first, negotiate second and this rule should never be violated.
3. Never negotiate if the customer you’re negotiating with has the ability to jeopardize long-term your price value-relationship you have already created with existing customers.
This is pricing integrity. If you wind up creating special deals with some customers you must always remember how the “special deal’ could be viewed by every other customer you already have or may have in the future.
4. Never negotiate if such behavior will impact how you behave with other customers in the future.
ow will negotiating with one customer impact how you behave in the future. What can be viewed initially as a one-time negotiation can quickly become an everyday occurrence amongst the sales team.
5. Never negotiate with a customer you expect will buy from you regularly going forward.
This can create huge problems! If a customer receives a special deal once, what is to keep them from expecting a special deal the next time they want to buy?
6. Never negotiate if the person you’re engaging with is not the decision maker.
Only thing that can happen here is you wind up having to negotiate twice, and the second time will get you even worse results.
7. Never negotiate if you and the customer aren’t exactly sure as to what you’re negotiating and why they need it.
Failure to know this can and will lead to concessions being made for no reason.
For more on these tips and other valuable skills, check out Breakthrough Sales University!
Copyright 2015, Mark Hunter “The Sales Hunter.” Sales Motivation Blog. Mark Hunter is the author of High-Profit Selling: Win the Sale Without Compromising on Price.