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Negotiating a Sale
1. Know the Customer
Understanding and working with the customer's needs is the key to successful sales negotiation (see Negotiating a purchase and Purchasing for the view from the other side of the table).
1.1 Know what the customer wants.
- Do you understand what the customer is asking for?
- Does the customer need all the features?
- What extras will he or she value?For example, free stationery deliveries will mean a lot if the customer is an out-of-town printer.
- What are the customer's purchasing priorities (eg delivery or price)?
1.2 Learn what you can about the customer's position.
- What alternatives does the customer have?
- How much can the customer pay?
- How urgently is your product needed?
1.3 Work out the value of your product to this particular customer, at this particular time.
The same product may be worth more or less to different customers.
- Does the customer have a problem your product can solve?
- What money will the customer save by buying your product?Your negotiating power will be increased if the saving lets the customer direct money to other important areas of their business.
- What other benefits can you offer that the customer may be happy to pay for?
1.4 Find out what the competition is doing.
Your competitors are your customer's alternative suppliers.
- What can they offer that you cannot?
- What are they charging?
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