1 / 21

Negotiating Buyer Concerns

Selling Today. 10 th Edition. CHAPTER. Manning and Reece. 13. Negotiating Buyer Concerns. Six-Step Presentation Plan. Approach (Chapter 10) Presentation (Chapter 11) Demonstration (Chapter 12) Negotiation Close Servicing the Sale. . Negotiation Defined.

orsen
Download Presentation

Negotiating Buyer Concerns

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Selling Today 10th Edition CHAPTER Manning and Reece 13 Negotiating Buyer Concerns

  2. Six-Step Presentation Plan • Approach (Chapter 10) • Presentation (Chapter 11) • Demonstration (Chapter 12) • Negotiation • Close • Servicing the Sale 

  3. 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

  4. Negotiation: A Win-Win Strategy • Personal selling is not a “we versus they” process • If trust is strong, negotiation becomes apartnership to workthrough, if not, negotiation becomes combative • Seek to maintain long-term relationship

  5. Common Types of Buyer Concerns • Customers may have concerns related to: • A need for the product • Product itself • Source of the product • Pricing • Timing

  6. Need 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

  7. The Product Itself • Product not well established • Product will not be popular • Associates did not like the product • Present product/system is satisfactory

  8. 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 buyer’s firm • Stay visible and connected to client

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

  10. Price Concerns:Low Price Strategy • Transactional buyers seek low prices • Empowered salespeople able to apply various discounts • Downside, lower profitsand lower commissions

  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

  12. Price Iceberg • Price is only the tip of the iceberg; remind customer of value-added factors below tip 13.3 FIGURE

  13. Concerns 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

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

  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

  16. Use a Negotiations Worksheet 13.5 FIGURE • See the text for the complete figure

  17. Specific Negotiation Methods • 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”

  18. Specific Negotiation Methods • Questions • Convert problem into need-satisfaction question • “How would a 30 percent reduction in breakdowns affect your company’s profitability?” • Superior benefit • Acknowledge prospect has valid concern and focus on superior benefit • Superior benefits should outweigh specific customer concerns

  19. Specific Negotiation Methods • Demonstration • Discuss competitive advantages of your product • Demonstrations overcome buyer skepticism effectively • Trial offer • Prospect tries product without purchase commitment

  20. 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

  21. Application: Digital Electronics • Go to a consumer electronics store and ask for help with laptop/notebook PCs • Raise a series of concerns and note how salesperson reacts • Price is too high • Heard that brand “XYZ” is bad • Maybe it’s not time to buy

More Related