Did you know that only a quarter of all sales are successful?
HubSpot reported that its average win and close rates are 21% and 29%, respectively. This means that about three-quarters of all sales negotiations usually fail.
As a sales professional, you seek to improve your performance and fill the sales pipeline. However, in the entire process, the negotiation part is the most important.
Why? It can make or break the deal!
What are the do’s and don’ts, then?
This article is a basic guide to sales negotiation. Read on to learn what steps to take and what to avoid for a successful closing deal.
Understanding Sales Negotiation
A sales process starts with lead prospecting and ends with sales closing. But somewhere in between, it involves lead qualifying, sales outreach, and lead nurturing. Negotiation comes before sales closing.
Chris Aubeeluck, Head of Sales and Marketing at Osbornes Law, suggests focusing on sales negotiation for successful conversions.
Aubeeluck argues, “I have my fair share of having been turned down by potential legal clients—multiple times. But over time, I’ve learned the art of negotiating. I realized that effective negotiation isn’t showcasing what your business can offer; it’s providing solutions to your client’s problems.”
Steps To Take and Avoid in Sales Negotiation
Sales negotiation requires a deliberate level of approach. There’s a need to optimize your sales strategies to close more deals.
According to the same HubSpot report mentioned above, the top sales goals are going beyond the targets (34%), making the process efficient (29%), and targeting new markets (28%).
However, nearly 55% of salespeople claim that selling has become harder. In fact, the top challenges include inflation (25%), supply chain (21%), and market competition (19%).
Jeffrey Zhou, CEO and Founder of Fig Loans, recommends reevaluating your sales approach.
Zhou asks, “Are all your sales negotiation tactics working? Maybe there are some things you need to stop doing and some best practices you must continue to follow. It takes sitting down with your sales team to consider what has and hasn’t been working.”
That said, consider the sales negotiation do’s and don’ts below:
Sales Negotiation Do's
This section will help salespeople build on their strengths. Below are steps to take in sales negotiation:
- Define your sales goals clearly. As with any business endeavor, start with goal-setting. What do you aim to achieve from such negotiations? Is it to nurture your leads, boost your sales, or exceed your quotas? These goals will motivate you to improve your negotiation skills and tactics!
- Understand your market. Sales negotiation ensues after lead generation, lead qualification, and sales outreach. This means that you already know who your prospects are at this stage of the customer journey. However, it takes digging further to understand them deeply and know how to approach them strategically.
- Prepare for negotiation thoroughly. Of course, proper planning and enough preparation are keys to sales success. These go beyond writing your sales pitches and responses. Consider all aspects, from the communication channel to the sales presentation to prospective customer engagement.
- Present your offer creatively. It pays to be a little creative in your negotiation approach as a salesperson. For example, beautify your sales presentation or turn your products into aesthetic tokens. Potential customers will appreciate that you exert time and effort into this, making them feel special and valued.
- Focus on the value authentically. During this customer journey stage, your prospects have shown interest in your products or services. It’s now a matter of showcasing your solutions to their problems. To do this, show authenticity, offer real value, tell success stories, and demonstrate your products’ efficacy.
- Establish good rapport seamlessly. Sometimes, people buy products or hire services because of how salespeople make them feel. To establish good relationships, demonstrate effective communication, active listening, true empathy, and positive body language. However, adapt your sales approach to different prospect personalities.
- Stop and walk away strategically. During the negotiation process, assess if your prospects are indeed potential customers. If they don’t agree with the terms and conditions after you’ve negotiated enough and the engagement isn’t sustainable, it’s time to let go. Remember, it’s not always a win-win situation!
However, Thomas Medlin, Co-founder at JumpMD, believes there’s no one-size-fits-all approach to sales negotiation. “Your sales tactics must align with your prospects—their goals, needs, interests, and preferences. By successfully meeting their needs and requirements, you’ll be able to influence their buying or hiring decisions.”
Sales Negotiation Don'ts
This section will help identify coaching opportunities to improve sales performance. Find out what steps to avoid in sales negotiation below.
- Don’t come completely unprepared. Nothing is more frustrating for customers than salespeople coming in not ready at all. You don’t know what to say (no sales pitches) and how to respond (poor rebuttals). You don’t want to waste their time, money, and effort during the negotiation.
- Don’t overpromise, but underdeliver. Today’s consumers have become more critical and selective than ever before. They focus on value and don’t quickly and easily fall prey to business offerings. This means that you must be transparent and authentic when showcasing your products or services.
- Don’t sound overly salesly. Consumers usually evade salespeople, whether online or offline. They quickly ignore product promotion via email or avoid handling flyers on the street. Therefore, your sales negotiation should focus on providing value and building relationships, not selling your products or services.
- Don’t focus on the sales pricing. It’s easy to discuss the prices of your products or services. This is especially true if you offer special discounts and exclusive deals. However, as mentioned, people buy products or hire services to solve their problems. Focus on their value instead!
- Don’t ignore the prospects’ concerns. Prospects have been drawn to you because they have problems and look for solutions. They have reached the sales negotiation stage because you have something they need. The ultimate goal is to address their concerns and create a win-win solution for both parties!
- Don’t be aggressive or standoffish. As a sales professional, you can be demanding by forcing potential customers to take your offer. Conversely, you can be nonchalant by not negotiating when prospects instantly say ‘no.’ Strike a balance between the two so you won’t push customers away!
Albert Kim, VP of Talent at Checkr, advises being critical of your sales approach. “There are some things you must avoid at all costs. Remember, you are the one reaching out with an offer. As a sales professional, give value to their time and effort as well as make your prospects feel special.”
The Art of Sales Negotiation: Closing More Deals
Sales negotiation is an art, which means it entails knowing what to do and avoid. As such, consider the do’s and don’ts outlined above for your sales approach. With these in mind, you’ll be able to close more and more deals for successful conversions!
Our CSS team firmly believes that closing deals requires a perfect mix of talent, training, and tactics. Get in touch with us today to see how we can help!
