Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-1 CHAPTER 13 Negotiating Buyer Concerns.

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-1

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13Negotiating Buyer

Concerns


Learning ObjectivesLearning ObjectivesLearning ObjectivesLearning Objectives

• Describe the principles of formal negotiations as part of a win-win strategy

• Describe common types of buyer concerns

• Discuss specific methods of negotiating buyer concerns

• Outline methods for creating value in formal negotiations

• Work with buyers who are trained in negotiating


Six-Step Presentation PlanSix-Step Presentation PlanSix-Step Presentation PlanSix-Step Presentation Plan

1. Approach (Chapter 10)

2. Presentation (Chapter 11)

3. Demonstration (Chapter 12)

4. Negotiation

5. Close

6. Servicing the Sale


Six-Step Presentation PlanSix-Step Presentation PlanSix-Step Presentation PlanSix-Step Presentation Plan

FIGURE 13.1


Negotiation DefinedNegotiation DefinedNegotiation DefinedNegotiation 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


Negotiation: A Win-Win StrategyNegotiation: A Win-Win StrategyNegotiation: A Win-Win StrategyNegotiation: A Win-Win Strategy

• Personal selling is not a “we versus they” process

• If trust is strong, negotiation becomes apartnership to work through, if not, negotiation becomes combative

• Seek to maintain long-term relationship


Strategic PlanningStrategic PlanningLeads to ActionsLeads to Actions

Strategic PlanningStrategic PlanningLeads to ActionsLeads to Actions

FIGURE 13.2


Planning for Formal NegotiationsPlanning for Formal NegotiationsPlanning for Formal NegotiationsPlanning for Formal Negotiations

1. Gather information before the negotiation

2. Decide team versus individual negotiations for both seller and buyer

3. Understand the value of what you are offering

4. Determine your goals and financial objectives


Planning for Formal NegotiationsPlanning for Formal NegotiationsPlanning for Formal NegotiationsPlanning for Formal Negotiations

5. Prepare an agenda

6. Review adaptive selling styles

7. Use the Negotiations Worksheet


The Negotiations WorksheetThe Negotiations WorksheetThe Negotiations WorksheetThe Negotiations Worksheet

FIGURE 13.3


Conducting the Negotiation SessionConducting the Negotiation SessionConducting the Negotiation SessionConducting the Negotiation Session

1. Understand the problem

2. Create alternative solutions that can add value

3. Periodically review acknowledged points of agreement

4. Do not make concessions too quickly

5. Be mindful of your timing (Pareto Law)

6. Know when to walk away


Common Types of Common Types of Buyer ConcernsBuyer Concerns

Common Types of Common Types of Buyer ConcernsBuyer Concerns

• Customers may have concerns related to:

• Need for the product

• Product itself

• Source of the product

• Timing

• Price


Need for ProductNeed for ProductNeed for ProductNeed for Product

• Conditioned response: “I don’t need the product.”

• Sincere need resistance a great challenge

• Not convinced of your product’s benefits

• Best way to overcome—prove your product is a good investment


Concerns About the Concerns About the Product or ServicesProduct or ServicesConcerns About the Concerns About the Product or ServicesProduct or Services

• Product not well established

• Present product/system is satisfactory


Concerns Related to the Concerns Related to the Source of ProductSource of Product

Concerns Related to the Concerns Related to the Source of ProductSource of Product

• Positive ways to overcome include:

• Work harder to identify how product solves problems

• Point out the superior benefits of your product and your company

• Work on recruiting internal champions to build more support for your message

• Try to stay visible and connected


Concerns Related to TimeConcerns Related to TimeConcerns Related to TimeConcerns Related to Time

• Also known as “the stall”

• Usually customer does not perceive benefits of buying now—or sees both positive and negative in product


Concerns Related to PriceConcerns Related to PriceConcerns Related to PriceConcerns Related to Price

• Price is one of the most common buyer concerns

• Skillful negotiation in this area is required

• Price objections may be nothing more than an excuse

• To most buyers, value is more important than price

• Position your product or service with a convincing value proposition

• Customers who perceive added value are less likely to object on basis of price


Specific Methods for Negotiating Specific Methods for Negotiating Buyer ConcernsBuyer Concerns


• Direct denial

• Refute prospect’s 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”




• Questions

• Convert problem into need-satisfaction question

• “What would a 10 percent reduction in employee turnover save your company?”

• Superior benefit

• Acknowledge prospect has valid concern and focus on superior benefit

• Superior benefits should outweigh specific customer concerns




• Demonstration

• Discuss competitive advantages of your product

• Demonstrations overcome buyer skepticism effectively

• Trial offer

• Prospect tries product without purchase commitment


Ask Positive QuestionsAsk Positive QuestionsAsk Positive QuestionsAsk Positive Questions

In their best-selling The New Conceptual Selling, authors Heiman, Sanchez, and Tuleja recommend using questions framed in a positive way rather than negatively.

See theWebsite

http://www.millerheiman.com/

http://www.millerheiman.com/




• 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


Creating Value During Creating Value During Formal NegotiationsFormal Negotiations

Creating Value During Creating Value During Formal NegotiationsFormal Negotiations

• Do clarify price concerns with questions

• Do add value with a cluster of satisfactions

• Do not make price focal point

• Do not apologize for the price

• Do point out the relationship between price and quality

• Do explain and demonstrate the difference between price and cost


The Price IcebergThe Price IcebergThe Price IcebergThe Price Iceberg

Price is only the tip of the iceberg. Remind customer of value-added factors below tip

FIGURE 13.4


The “Winner in the Short Run”The “Winner in the Short Run”The “Winner in the Short Run”The “Winner in the Short Run”

The cavernous Airbus leads on seat cost per mile, but the much lower price per trip of the CRJ200 makes it a winner in the minds of some buyers.

FIGURE 13.5


Working with Buyers Trained in Working with Buyers Trained in Formal NegotiationFormal Negotiation

Working with Buyers Trained in Working with Buyers Trained in Formal NegotiationFormal Negotiation

• Budget limitation tactic

• Take-it-or-leave-it tactic

• Let’s-split-the-difference tactic

• “If . . . .then” tactic

• “Sell low now, make profits later” tactic


Sales Negotiation TrainingSales Negotiation TrainingSales Negotiation TrainingSales Negotiation Training

Acclivus offers the Acclivus Sales Negotiation System for salespeople who work in the business-to-business sales arena.

See theWebsite

http://www.acclivus.com/

http://www.acclivus.com/


Sales Negotiation TrainingSales Negotiation TrainingSales Negotiation TrainingSales Negotiation Training

Karrass Limited offers the Effective Sales Negotiating Seminar

See theWebsite

http://www.karrass.com/

http://www.karrass.com/


Key ConceptKey ConceptDiscussion QuestionsDiscussion Questions


• Describe the principles of formal negotiations as part of the win-win strategy

• Describe common types of buyer concerns

• Discuss specific methods of negotiating buyer concerns




• Outline methods for creating value in formal negotiations

• Describe how you would work with buyers trained in formal negotiation


13-31

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Copyright © 2010 Pearson Education, Inc. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice HallPublishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-1 CHAPTER 13 Negotiating Buyer Concerns.

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