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Prof. A. K. Biswas. 2. What is Selling? . Essentially, selling is the process of persuasion.The actual art of selling has little to do with specific features or products and much more to do with the art of persuasion.. Prof. A. K. Biswas. 3. Prof. A. K. Biswas. 3. Why Personal Selling is More Imp
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51. Prof. A. K. Biswas 51 What are the Strategies for Sales Negotiation? Negotiation should never be a substitute for selling.
When you are selling you do not give anything away.
Think of negotiation as something which will only be effective after you have done the best possible job of selling.
52. Everyone wants value but not everyone is willing to pay for it.
To be successful salespeople need to recognize the differences among the buyers and craft the right sales approaches if they do not want to waste their time and leave money on the table. Prof. A. K. Biswas 52 What are the Strategies for Sales Negotiation?
53. There are four types of buyers:
Price buyers buy exclusively on price. Price buyers are very careful not to let themselves get committed to any particular supplier by making sure they have no switching cost.
Value buyers are willing to switch from one supplier to another based on their ability to improve their financial picture or impact for their clients. Prof. A. K. Biswas 53 What are the Strategies for Sales Negotiation?
54. Relationship buyers rely on close relationships with their suppliers and trust that they will provide them solutions and services to win market share against their competitors.
Poker-playing buyers appears to be focusing on price but are really driving the vendors to leave money on the table and still continue to provide high-value features and services. Prof. A. K. Biswas 54 What are the Strategies for Sales Negotiation?
55. It is vital that a company going into negotiations with a customer knows in advance what kind of buyer that customer is.
With the price buyers, the purchasing agent will qualify quite a few suppliers that can meet the specifications.
Thereafter, they would use their bargaining power ruthlessly to extract the best deal from the suppliers. Prof. A. K. Biswas 55 What are the Strategies for Sales Negotiation?
56. Price buyers use bidding wars to drive prices down.
The first rule in dealing with price buyers is to be careful in getting into bidding wars with competitors as no supplier really wins in a price war.
It is vital that salespeople establish the bottom price based on the current business loading and cost structure before entering into the negotiation with such buyers.
Prof. A. K. Biswas 56 What are the Strategies for Sales Negotiation?
57. Secondly, all extra features and services must be stripped away, and only the bare minimum solutions should be offered to the price buyers.
Value buyers want clear demonstrable value from suppliers.
They have internal expertise to evaluate that value to the organization or to their clients.
Prof. A. K. Biswas 57 What are the Strategies for Sales Negotiation?
58. In dealing with the value buyers, salespersons must invest in understanding the value buyers business.
They must take ownership of the customers results.
Salespersons must give such buyers choices while putting together the offering package and provide the necessary analysis to help them make the best choice.
Prof. A. K. Biswas 58 What are the Strategies for Sales Negotiation?
59. Relationship customers expect their vendors to do the best job possible meeting their needs.
They usually rely on their vendors to provide them with technical expertise to make systems, machines, and processes work.
These are customers that need to connect with the selling organizations senior executives on a regular and planned basis. Prof. A. K. Biswas 59 What are the Strategies for Sales Negotiation?
60. It is best to start working slowly with a relationship customer.
The salesperson may identify a problem which their current vendor missed and offer to solve it.
The job then must be done well so that trust is build with the buyer.
Offering choices to relationship customers is important as in case of value buyers. Prof. A. K. Biswas 60 What are the Strategies for Sales Negotiation?
61. Poker players are the hardest customers to deal with because they want to get high value for low price and are accustomed to getting it.
To effectively deal with poker customers, salespersons must do homework on the estimated value of their products and services to these customers. Prof. A. K. Biswas 61 What are the Strategies for Sales Negotiation?
62. Often the poker playing is done by a purchasing agent and usually there is a strong gatekeeper to keep the vendor away from the real influencers and decision makers.
The trick here is to do everything possible to get access to the other members of the buying centre.
Prepare technical and financial questions to get past the buyer to the right people. Prof. A. K. Biswas 62 What are the Strategies for Sales Negotiation?
63. With poker players, the negotiation planning is very important and the pricing strategy must be well thought out and agreed between the salesperson and the senior managers.
The salesperson must learn to bluff and learn to get up and walk away from the table when there is still some value in the hand.
Then the salesperson can begin to close the deal confidently and profitably. Prof. A. K. Biswas 63 What are the Strategies for Sales Negotiation?
64. Prof. A. K. Biswas 64 Regardless of the negotiation approach taken, the sales person should develop a best alternative to a negotiated agreement (BATNA).
A BATNA is the most favourable option that the supplier can pursue if the supplier firm cannot reach an equitable agreement with a prospect. What are the Strategies for Sales Negotiation?
65. Prof. A. K. Biswas 65 If the terms of an agreement exceed the BATNA, the sales representative accepts the terms of the deal.
On the other hand, if it falls below the BATNA, he declines and either makes a counteroffer or terminates the discussion. What are the Strategies for Sales Negotiation?
66. Prof. A. K. Biswas 66
