The 3 Most Important Negotiation Practices to Enhance Sales Profits
The ability to negotiate effectively is a key driving factor in enhancing profits. However, negotiating can often feel like tiptoeing across a high-strung tightrope. You need to be careful about what you say and how you say it, or you could risk the deal falling to a very painful end.
As challenging as negotiating can be, sales training companies say sticking to some key practices can make the process run smoother. This article explores three powerful negotiation practices salespeople can use to enhance profits as economic outlooks grow more uncertain.
Focus on value, not price
Value refers to what the product or service can do for the customer. Price is the amount asked in return. By focusing on value, you open up the opportunity to have a conversation about what the product or service is worth to the customer. This helps salespeople understand what’s important to their customers and craft a solution that satisfies the customer’s needs.
When you can deliver the maximum value to the customer, you’re more likely to come away with without discounting the order. Not to mention, you’ll establish a solid reputation for your company as a provider of quality products or services.
To sell value, not price:
- Know your product or service inside and out. This ensures that you can easily identify its key value points.
- Research your competition so you can adjust your pitch to focus on your product or service’s unique value.
- Dig into the customer’s pain points. By demonstrating how your product or service can solve a specific problem, you’ll be able to show its worth and why the customer should pay your asking price.
Create a win-win solution
The best sales negotiations are those in which both sides come away feeling like they’ve won. To achieve this, sales training companies recommend creating a win-win solution, where both the customer and the salesperson feel they’re walking away with what matters most to them.
Aiming for a win-win solution helps strengthen the salesperson-customer relationship. Also, the customer is more likely to be satisfied with the outcome and feel good about doing business with the salesperson again in the future.
Some ways you could create a win-win solution are to:
- Keep an open mind. Be willing to consider different options and solutions.
- Be flexible. Don’t be afraid to adjust your offer to meet the customer’s needs.
- Think outside the box. Come up with creative solutions that can benefit everyone involved.
Building rapport with customers can put you in a stronger position to influence the outcome. According to Gong, the more time spent on rapport-building, the greater the closing ratio.
Taking time to develop harmonious relationships also allows you to develop deep, long-term connections with customers. Studies by Semrush show that existing customers make larger purchases. They also shop more often, which can lead to a more stable sales pipeline and increased revenue.
Sales trainers say companies can build rapport by:
- Being genuine and authentic in their interactions.
- Finding common ground with customers, such as shared interests or experiences.
- Listening attentively and without judgment to what the customer has to say.
- Demonstrating empathy and understanding towards the customer’s needs and perspectives.
By following these three powerful negotiation practices, salespeople can help their companies close more sales at a higher profit.