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13-1
Negotiating Buyer Concerns
Selling TodaySelling Today10th Edition
CH
AP
TE
R Manning and Reece
13
13-2
Six-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
13-3
Negotiation 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
13-4
Negotiation: 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 workthrough, if not, negotiation becomes combative
• Seek to maintain long-term relationship
13-5
Common Types of Buyer ConcernsCommon Types of Buyer Concerns
• Customers may have concerns related to:
• A need for the product
• Product itself
• Source of the product
• Pricing
• Timing
13-6
Need 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
13-7
The Product ItselfThe Product Itself• Product not well established
• Product will not be popular
• Associates did not like the product
• Present product/system is satisfactory
13-8
Source of ProductSource 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
13-9
Price Concerns:Trained BuyersPrice Concerns:Trained Buyers
• Buyers trained in negotiation
• Budget limitation tactic
• Take it or leave it
• Split the difference
13-10
Price Concerns:Low Price Strategy
Price Concerns:Low Price Strategy
• Transactional buyers seek low prices
• Empowered salespeople able to apply various discounts
• Downside, lower profitsand lower commissions
13-11
Dealing with Price ConcernsDealing 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 IcebergPrice 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 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
13-14
Customer ObjectionsCustomer Objections
• Customer objections are often requests for more information to justify buying decision
TABLE 13.1
13-15
Negotiating Buyer ConcernsNegotiating 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
Use a Negotiations WorksheetUse a Negotiations Worksheet
• See the text for the complete figure
FIGURE 13.5
13-17
Specific Negotiation MethodsSpecific 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”
13-18
Specific Negotiation MethodsSpecific 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
13-19
Specific Negotiation MethodsSpecific Negotiation Methods
• Demonstration
• Discuss competitive advantages of your product
• Demonstrations overcome buyer skepticism effectively
• Trial offer
• Prospect tries product without purchase commitment
13-20
Specific Negotiation MethodsSpecific 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