Maybe. But it will come with a hefty destruction of profit.
Too many salespeople are negotiating when they really should be selling.
Are you one of them?
If so, it’s costing you and your company dearly.
There is a way to protect your profits! And let me tell you — negotiating is NOT the way.
Okay, now back to this issue of negotiating and how it is killing your profit.
One way to avoid negotiating all together is to sell first, negotiate second. When you sell first — and genuinely uncover the true needs of the customer — you will rarely have a need for negotiating.
You will be able to match your benefits to the customer, and the customer will see that you are not asking too much with your full price offer.
I can hear the laments right now.
“But what if I can’t close the sale without offering a discount?!”
My response? It’s probably not a sale worth having.
I even believe that companies should introduce a “no negotiation” policy. Profit too often is compromised when the salesperson has the green light to adjust pricing on the spot, without having to secure approval from anyone else.
The problem is that if salespeople have authority to negotiate under any circumstance, they will lean toward negotiation that sabotages profit.
Sure, they don’t go into it thinking this is what they are doing, but trust me — the negotiating typically leads straight to a path of offering a discount.
The “no negotiation” policy can and will work.
I cover this topic at length in my book, because I believe firmly that this is one area where companies can stop such rampant profit drain.
What about the times when negotiating does seem like a reasonable response?
I recognize that in the world of sales, negotiation is needed at times. (Remember, though — I think those times are fewer than many salespeople believe, and salespeople shouldn’t have free rein to negotiate at will).
However, when negotiating is necessary, it should be done with things that won’t kill profit.
In other words, offering a discount on price should rarely if ever be used. You can negotiate by making concessions that are not strictly price-based, such as bumping up service slightly, offering more favorable delivery times, and so forth.
Just remember this: “A sale at a reduced price is not better than no sale at all.”
Sometimes, the wisest decision you can make is to not budge on price and instead stay focused on the customers who are the best fit for what you offer — and are willing to pay for it.
If you want to know more about how negotiating can kill your profit, check out my book “High Profit Selling: Win the Sale Without Compromising on Price.”
I also cover these topics…
- Use Needs and Benefits to Command a Higher Price
- Create Real Value Using your Price Point
- Identify the Most Profitable Prospects — and Turn Them into Customers
- Sell More by Talking Less
- Kill the Sales Presentation
- Sell to the C-Suite
- How to Handle Price Objections
- How to Execute a Price Increase
- Leverage Knowledge to the Fullest
- Sell More without Even Being There
- How to Handle Purchasing Departments and Professional Buyers
- RFPs and RFQs: The Bidding Process
- Position Yourself for Continued High Profits
And if you are interested in me coming to your company or sales meeting with customized training on these skills, contact me today at firstname.lastname@example.org so we can coordinate our calendars!
Copyright 2012, Mark Hunter “The Sales Hunter.” Sales Motivation Blog.