The proof of sales lies in the number of sales negotiations which lead to closure and revenue generator for the organisation. In this blog I am listing down the most common reasons for failure of Sales Negotiation.
Salesperson starts negotiation even before their offering becomes buyer’s top choice.
- If buyer does not agree in so many words that your product or service is the best choice for him what is the point of negotiating because he will till not buy your product since you are not his top most choice
- If the buyer agrees in so many words that your product or service is the best choice for him what is the point of negotiating because he already feels that your product or service is the best option and choice for the customer
Customer does not even know the financial benefit of dealing with sales negotiators product or service
- The customer must know the exact number of money that he is going to save by making positive use of your product or service.
- The customer should also know the exact number of money that he is going to lose by not making positive use of your product or service.
Salesperson did not anticipate getting squeezed on price
The opening offer made by the salesperson is very important. The following figures get mathematically pegged to the opening offer
- Opening “ask” of buyer
- Last “give” of buyer
- Last “give” of seller
If any sales negotiator ever believes that orders can be closed on opening offer, this is a sure shot recipe for failure in negotiation.
Salesperson takes position based on his interest rather than customer’s interest
A smart sales negotiator has to learn how to craft a MVP (Minimum Viable Product) on the negotiation table.The MVP should be aligned to the “Interest” of the customer rather that retrofitted into challenges of self.
How do you do this?
- Identify the interest of the customer
- Prioritise the interest of the customer
- Craft your MVP for each interest of the customer
Salesperson is unable to expand the size of pie with non monetary trade ups
In every sales transaction, especially at the time of final sales negotiation, there are a lot of intangibles which are taken for granted.
- Insurance in transit
- Off-loading and Loading charges
- Receipt of damaged goods
- Pre shipment inspection
- Bank guarantee charges
- Training fees
- Installation charges
- Moratorium over escalation of cost of consumables for a fixed period of time
- Calliberation . and many more
A smart negotiator puts everything on the table, monetise each such time and treat each element as a negotiable element on the table of sales negotiation.
Salespersons “give without getting” on the negotiation table
If you give you must get is a guiding principle for all sales negotiators. On the negotiation table , the customer always asks for a lot of things. What should a smart sales negotiator do?
- Anticipate what all could the customer ask for
- Prepare a “give and get” kit for each such apparent ask from the customer
- Never give without getting on the negotiation table. This is as per planned “Give and Get” kit
Salespersons sometimes, do not know their walk away point
In every Sales negotiation there is an “Exit Point” predefined before sitting on the negotiation table. This is a part of Sales Negotiation. If this is not done during planning stage, sales persons fail at the negotiation table. They start making an attempt to win all battles and in the process lose the ultimate war!
These are the 7 most common mistakes that sales negotiators make on the negotiation table. If every sales negotiator can brace himself with soft skills and arm himself with functional knowledge so that they do not commit these 7 mistakes, I am sure that their respective sales negotiation will sail smoothly.