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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.

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Negotiating Buyer Concerns

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  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

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