Negotiating Buyer Concerns

1
13
Negotiating Buyer Concerns
2
Six-Step Presentation Plan

• Approach (Chapter 10)
• Presentation (Chapter 11)
• Demonstration (Chapter 12)
• Negotiation
• Close
• Servicing the Sale

?
3
Negotiation Defined

• Working to reach an agreement that is mutually
  satisfactory to both buyer and seller
• Negotiation is a process
• Ability to negotiate problems or objections is a
  most effective way to create value

4
Negotiation A Win-Win Strategy

• Personal selling is not a we versus they
  process
• If trust is strong, negotiation becomes
  apartnership to workthrough, if not,
  negotiation becomes combative
• Seek to maintain long-term relationship

5
Common Types of Buyer Concerns

• Customers may have concerns related to
• A need for the product
• Product itself
• Source of the product
• Pricing
• Timing

6
Need for Product

• Conditioned response I dont need the product.
• Sincere need resistance a great challenge
• Not convinced of your products benefits
• Best way to overcomeprove your product is a good
  investment

7
The Product Itself

• Product not well established
• Product will not be popular
• Associates did not like the product
• Present product/system is satisfactory

8
Source of Product

• Ways to overcome include
• Identify how product solves problems
• Superior benefits of your product
• Illustrate profits from adding second line
• Place trial order to evaluate merits
• Recruit champions inside buyers firm
• Stay visible and connected to client

9
Price ConcernsTrained Buyers

• Buyers trained in negotiation
• Budget limitation tactic
• Take it or leave it
• Split the difference

10
Price ConcernsLow Price Strategy

• Transactional buyers seek low prices
• Empowered salespeople able to apply various
  discounts
• Downside, lower profitsand lower commissions

11
Dealing with Price Concerns

• Do clarify price concerns with questions
• Do add value, stress service
• Do not make price focal point
• Do not apologize for the price
• Do point out price/quality relationship
• Do demonstrate difference between price and cost
• Do not make concessions too quickly

12
Price Iceberg

• Price is only the tip of the iceberg remind
  customer of value-added factors below tip

FIGURE
13.3
13
Concerns Related to Time

• Also known as the stall
• Usually customer does not perceive benefits of
  buying nowor sees both positive and negative in
  product

14
Customer Objections

• Customer objections are often requests for more
  information to justify buying decision

TABLE
13.1
15
Negotiating Buyer Concerns

• Know value of your offering
• Prepare for negotiations
• Understand the problem
• Create alternative solutions
• Find points of agreement
• Know when to walk away

16
Use a Negotiations Worksheet
FIGURE
13.5

• See the text for the complete figure

17
Specific Negotiation Methods

• Direct denial
• Refute prospects opinion or belief
• Be firm, not offensive, think win-win
• Indirect denial
• Acknowledge prospects as partly right
• Feel-Felt-Found
• I understand how you feel
• Others have felt that way
• Until they used the product and found it
  quite easy and reliable

18
Specific Negotiation Methods

• Questions
• Convert problem into need-satisfaction question
• How would a 30 percent reduction in breakdowns
  affect your companys profitability?
• Superior benefit
• Acknowledge prospect has valid concern and focus
  on superior benefit
• Superior benefits should outweigh specific
  customer concerns

19
Specific Negotiation Methods

• Demonstration
• Discuss competitive advantages of your product
• Demonstrations overcome buyer skepticism
  effectively
• Trial offer
• Prospect tries product without purchase commitment

20
Specific Negotiation Methods

• Third-party testimony
• Neutral third-party testimony adds credibility
• Almost never triggers client argument
• Postpone method
• Postpone answers to client concerns until later
  in dialogue
• Explain why you want to postpone

21
Application Digital Electronics

• Go to a consumer electronics store and ask for
  help with laptop/notebook PCs
• Raise a series of concerns and note how
  salesperson reacts
• Price is too high
• Heard that brand XYZ is bad
• Maybe its not time to buy