Often, Salespersons tend to make mistakes during their Sales Negotiation conversations and tend to lose out on the sales wondering what exactly happened. The lead which they have been following up for many month now is lost just at the last phase of the sales cycle at the time of Sales Negotiation. These are the 3 expensive mistakes which every sales person should avoid at the time of negotiation.
1. Price Negotiation on High Cost Products
Avoid negotiation with Customers for reducing the price of high cost products. Always try to negotiate with customers only for the low cost products having a high perceived value in the minds of the customers. If you reduce the price of High Cost Products, then customers would expect that every time they buy from you. This is detrimental for your business growth since you would find it difficult to run your business on thin margin for a prolonged period of time.
2. Not knowing the Urgency for Customers
As a Salesperson, you would stand good at negotiating position if you are aware of the extent of urgency of the customer who wants to buy from you. If they are having less time and the purchase of the product you are selling is urgent for them, then you stand a better chance. In this kind of situation, you have more chances to crack the sales deal with lesser amount of negotiation with the customer. This is because since customer doesn’t have much time to search for another vendor, they would happily agree with your price.
3. Starting Negotiation without understanding the needs of the customer
You should never start sales negotiation at the start of the sales cycle even without understanding the needs of the customer in the discovery phases of the sales cycle. The more questions you ask to your customer during the Need Discovery phases of the sales cycle, the more information you will get on the needs and requirements of the customers. This will help you set the expectations of the customers and would help you negotiate better. The more you know about the expectations of the client, the more you would be able to point out those facts during your sales negotiation conversations and hence customers would be willing to pay a higher price if their expectations are met.
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