Chapter 13: Negotiating Buyer Concerns

Identify needs and develop solutions up front

• Build value in the front end of the sale, price becomes less of an issue on the back end of the
sale
If Done incorrectly
• 83 % enter into negotiations with no formal strategy • Making last-minute concessions in order
to close

Formal Integrative Negotiation

Negotiating skills have application almost daily in our personal and professional lives
• Any agreement that leaves one party dissatisfied will come back to hurt the other party later

When trust and rapport are strong, negotiation is a partnership

• After you have configured a solution that matches the customer’s needs, you must select which
presentation strategy to emphasize

Negotiation –working to reach an agreement that is mutually satisfactory to buyer and seller •
Resolve problems and concerns that prevent people from buying
• Win-win relationship for long-term results, Not a one-time deal
Can take place before the sales call
• Meeting time, location, attendees, length of meeting
• Can take place anytime during the sales presentation
• Most important during stage three of buying process
• Early concessions can have a negative influence by setting a precedent
None verbal Cures: closed off body posture, fidgeting, looking up, lack of eye contact, turning
head away, listening or distracted,
checking in with a question “do you agree, any questions?”
Taking a break, when someone becomes agitated they negotiation will not a successful
Going over a review of what was agreed on

Planning for Formal negotiations

Professional buyers are well-trained negotiators so do your homework: • Gather information
before the negotiation
• “Exhaustive preparation is more important than aggressive argument.” - Robert H. Schuller
• From both parties’ points of view
• Identify similarities and differences in goals and objectives
Decide team versus individual negotiations for both seller and buyer
• Ensure there is a leader and establish guidelines for information exchange
• Cohesion may yield higher profits
• Understand the value of what you are offering
• Discover what is of the utmost importance
• Tangibles and intangibles
Determine your goals and financial objectives
• BATNA – Best Alternative to Negotiated Agreement
• Your’s and customer’s
• ZOPA – Zone of Possible Agreement
• Space between the seller’s walk-away point (reservation value) and the buyer’s highest willing
to pay
Prepare an agenda
• What will and will NOT be discussed
• Prioritize so buyer gets “small wins” up front to create goodwill
• Review adaptive selling styles
Prepare a negotiations worksheet
• Predict and classify possible resistance
• Identify the most common problems and how to respond

Conducting the Negotiation Session

Golden Rules To Be Successful:
• Understand the problem
• Misunderstanding or disagreement?
• Probing questions help
• Create alternative solutions (logrolling) that can add value
• Validate with confirmation question
1)Giving personal attention; pleases customer
2)Gives time to think about best response
Periodically review acknowledged points of agreement
• Summary-confirmation question so value outweighs points of disagreement
• Full attention now on resolution
• Do not make concessions too quickly
• Do not substitute negotiation for good selling
Timing and the Pareto Law
• Use time as strategic weapon; buying time to fully consider concessions
• Know when to walk away
• Not favourable for your company or, only interested in lowest price
• When appropriate document minutes and settlement in writing

Common Types of Buyer Concerns

1) Concerns related to need for the product • Conditioned response or real reason • Prove
your product is a good investment
2) Concerns about the product or service • Product not well established • Third party
testimonials, demonstrations, guarantees • Present product or service is satisfactory •
Change is hard; offer value (such as warranties)
3) Concerns related to source • Difficult with relationship buyer i. Work harder to identify
problems only your company can solve ii. Point out the superior benefits (company level
not of the product) iii. Work on recruiting internal champions iv. Try to stay visible and
connected
4) Concerns related to time (stall) • No benefit to buy now; use probing questions • If now is
beneficial present sincerely • Renewing a contract may mean renegotiation
5) Concerns related to price • Most common form of resistance • May only be an excuse

Methods of Negotiating Concerns

Direct denial • Indirect denial • Feel-Felt-Found • Questions • Superior Benefit • Demonstration •
Trial Offer • Third-Party Testimony • Postpone Method • Combination Methods

Creating Value During Negotiations

• The challenge a salesperson faces in almost every negotiation is to sell products and services
based on fair and unique value propositions, not simply on the basis of price

How to Deal with Price Concerns

Clarify price concerns with questions
• Add value with a cluster of satisfactions
• Do not make price the focal point of your sales presentation
• Do not apologize for the price
• Point out the relationship between price and quality
• Explain and demonstrate the difference between price and cost

Negotiating with a Low-Price Strategy

Many salespeople are empowered to use discount strategies
• Quantity discount, trade discount, seasonal discount, and promotional discount
• Price match competition
• Consider eliminating features for transactional buyers who are primarily interested in price and
convenience

Buyers Trained in Negotiation

Budget Limitation Tactic
• Repackage offering to meet
•Unbundling – eliminating features or items that contribute to a higher selling price
Take-It-or-Leave-it Tactic
• Take it
• Leave it
• Review the benefits and try again
• Appeal to fairness
• If no merit in final offer give customer a way out
• Let-Us-Split-the-Difference Tactic

Buyers Trained in Negotiation

“If … Then” Tactic
• Buyer presses for a discount or they will buy elsewhere
• Assess the value of the customer’s business versus conceding
“Sell Low Now, Make Profits Later” Tactic
• Reverse it to buy as is now, offer discount later
• Overall, decide in advance what you are willing to accept and how to handle any plausible
option a client might present  be prepared
Summary
Skill in negotiation plays a key role in selling
• Planning for formal negotiations works
• Buyers often have legitimate concerns
• Seven methods of dealing with buyer concerns
• How to deal with price concerns
• Working with experienced buyers