By Graham Roberts-Phelps
Selling goods and services requires many skills, but to achieve truly profitable results every salesperson must master the demanding skills of negotiation. In selling you don’t necessarily get what you deserve; you get what you are capable of negotiating. The skill of negotiation in selling is a crucial factor that, when mastered, will ensure you always make the profitable sales.
One of the areas of successful negotiation is to master the art of price pressure.
When a customer applies price pressure, it creates tension. Most salespeople (and most people in general) are uncomfortable in such situations, and strive to make the tension go away.
Unfortunately, tension over price is a natural part of today’s competitive selling environment. Successful sales professionals are able to “stay with” this tension. Rather than giving in and making quick price concessions, they use the Price Pressure Model to explore customer needs further, and uncover new ways to justify more profitable pricing.
Communicate what you want and need from the negotiation, and encourage the customer to defer discussion of price until needs are fully explored.
Ask Open Questions
Uncover information, especially about underlying customer needs, and the rationale behind the price objective.
Test and Summarise
Clarify customer needs and build up relationship.
Generate creative solutions to solving the customer “price problem.”
Break impasses and close sale price, which satisfies all parties.
By using these behaviours when price objectives arise, top salespeople strike a balance between standing firmly for their company’s interests, and taking actions, which build long-term customer loyalty.