CHAPTER

13

10th Edition

Selling Today

Manning and Reece

Negotiating Buyer
Concerns

13-1

Six-Step Presentation Plan

1. Approach (Chapter 10)
2. Presentation (Chapter 11)
3. Demonstration (Chapter 12)

5. Close

4. Negotiation

6. Servicing the Sale

13-2

Negotiation 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

13-3

Negotiation: A Win-Win Strategy

Personal selling is not a we versus they
process
If trust is strong,
negotiation becomes a
partnership to work
through, if not, negotiation
becomes combative
Seek to maintain long-term relationship
13-4

FIGURE 13.2

Strategic Planning

13-5

Need for Product

Conditioned response: I dont need the
product.
Sincere need resistance a great challenge
Not convinced of your products benefits
Best way to overcomeprove your
product is a good investment

13-6

The Product Itself

Product not well established
Product will not be popular
Associates did not like the product
Present product/system is satisfactory

13-7

Source of Product
Ways to overcome include:
Identify how product solves problems
Superior benefits of your product
Illustrate profits from adding second line
Place trial order to evaluate merits
Recruit champions inside buyers firm
Stay visible and connected to client
13-8

Price Concerns:
Trained Buyers
Buyers trained in negotiation
Budget limitation tactic
Take it or leave it
Split the difference

13-9

Negotiation Training by Acclivus

See the
Website

13-10

Price Concerns:
Low Price Strategy
Transactional buyers seek low prices
Empowered salespeople able to apply various
discounts
Downside, lower profits
and lower commissions

13-11

Dealing with Price Concerns

Do clarify price concerns with questions
Do add value, stress service
Do not make price focal point
Do not apologize for the price
Do point out price/quality relationship
Do demonstrate difference between price
and cost
Do not make concessions too quickly

13-12

Price Iceberg
Price is only
the tip of the
iceberg; remind
customer of
value-added
factors below tip

FIGURE 13.3
13-13

Concerns Related to Time

Also known as the stall
Usually customer does not perceive
benefits of buying nowor sees both
positive and negative in product

13-14

Customer Objections
Customer objections are often requests
for more information to justify buying
13.1
TABLE
decision

13-15

Negotiating Buyer Concerns

Know value of your offering
Prepare for negotiations
Understand the problem
Create alternative solutions
Find points of agreement
Know when to walk away
13-16

Specific Negotiation Methods

Direct denial
Refute prospects 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

13-17

Specific Negotiation Methods

Questions
Convert problem into need-satisfaction question
How would a 30 percent reduction in breakdowns
affect your companys profitability?

Superior benefit
Acknowledge prospect has valid concern and focus
on superior benefit
Superior benefits should outweigh specific customer
concerns
13-18

Specific Negotiation Methods

Demonstration
Discuss competitive advantages of your
product
Demonstrations overcome buyer skepticism
effectively

Trial offer
Prospect tries product without purchase
commitment
13-19

Specific Negotiation Methods

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
13-20

Negotiation Tips
See the following for suggestions:
trainingexpert.com
work911.com
mindtools.com

13-21