Relationship
Selling
Mark W. Johnston
Greg W. Marshall
McGraw-Hill/Irwin
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
Negotiating for
Win-Win
Solutions
Chapter 7
7-3
Learning Objectives
•
•
•
•
•
Understand the process of negotiating winwin solutions
Know the common objections most
salespeople encounter working with
customers
Know the basic points to consider in
negotiating with customers
Understand the specific negotiating
strategies
Understand the sales manager’s role in
negotiating win-win solutions
7-4
Exhibit 7.1
Summary of Customer Concerns
• Do I need your product?
• Product need
• Your product need
• Do I trust your company?
• Unease about your company
• Loyalty to an existing supplier
7-5
Exhibit 7.1
Summary of Customer Concerns
• I don’t really know you
• I need more time to consider your product
• Is this your best price?
• Add value to the total package
• Price should never be the main issue
• Price is your friend, not your enemy
7-6
Do I Need Your Product?
• Companies try very hard to help
customers understand the need for their
products.
• Sony provides a “Learning Center” to
educate consumers about their different
TVs.
• They hope to maximize the customer’s
satisfaction by helping them select the
product that best fits their needs.
7-7
Innovation 7.1
Tips for Negotiating Price
• Understand buyer’s biggest value
• Understand buyer’s fear
• Focus on lowest total cost
• Utilize questions to uncover what buyer
values
7-8
Is This Your Best Price?
• Some companies focus a great deal on
offering the lowest price
• Others have been successful by focusing
on value
7-9
Exhibit 7.2
Guidelines for Negotiating Win-Win
Solutions
• Plan and prepare
• Anticipation enhances negotiations
• Say what you mean and mean what you
say
• Negativity destroys negotiations
• Listen and validate customer concerns
• Always value the value proposition
7-10
Exhibit 7.3
Negotiation Strategies
•
•
•
•
•
•
•
Question
Direct denial
Indirect denial
Compensating for deficiencies
Feel-felt-found
Question
Direct denial
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Exhibit 7.3
Negotiation Strategies
•
•
•
•
•
•
•
Indirect denial
Compensating for deficiencies
Feel-felt-found
Third-party endorsements
Bounce-back
Defer
Trial offer
7-12
Question
• Turn the customer’s concern into a
question and refocus on one or more
strengths of your value proposition
• Get the customer thinking in a new way
and contrast his/her concern against an
advantage
7-13
Question
Your product
is 10% more
than your
competitor’s!
Yes, it is slightly
more expensive,
but do you agree
that the higher
quality means
fewer returns
and lower service
costs for your
company in the
long run?
7-14
Direct Denial
•
•
•
•
Confrontational strategy for dealing with
customer objections
Customers may react negatively
Use this strategy when the customer states a
clearly false and damaging statement about
you, the company, or your product
Avoid being offensive, insulting, or
condescending
7-15
Direct Denial
I was told recently
that you had to recall
all of your
production for the
last two months
because of a faulty
relay in your switch
mechanism.
I’m not sure
where you could
have heard that.
We have not had
a recall on any of
our products for
over 10 years. If
you like, I can
provide the data
for you.
7-16
Indirect Denial
• Less threatening than direct denial
• Begins by agreeing with the customer,
validating the objection, then explaining
why it is untrue
7-17
Indirect Denial
Demand for
your products is
strong. I’m not
convinced you
will be able to
meet my order
on time.
You are correct. My
company has enjoyed
tremendous success
and we are thankful…
However, we pride
ourselves on not
missing order
deadlines, and our
customers will verify
that…
7-18
Compensating for Deficiencies
• Moves the customer from focusing on a
feature your product performs poorly to
one in which it excels
• The new feature must be important to the
customer
7-19
Compensating for Deficiencies
The response
time on your
product is too
slow. Your
competition’s
response time is
two-tenths of a
second faster.
I agree with you. My product
is two-tenths of a second
slower. However, please
note that it also costs 25%
less per unit… and has 10%
fewer returns…
7-20
Feel-Felt-Found
• Acknowledge the customer’s feeling
• Extend the same feelings to a larger
audience
• Counter with a legitimate argument
• Caution: this technique has been around
for a long time.
7-21
Feel-Felt-Found
In my opinion,
your products are
overpriced and
not worth the
extra cost.
Our products are slightly more
that the competition’s and I
can certainly see why you feel
that way. Other customers
have felt that way at first.
However, when they take the
time to examine the product
quality, they have found the
overall value to be worth the
investment.
7-22
Third-Party Endorsements
• Use of outside parties to bolster your
arguments in the presentation
• Adds credibility
• Can be combined with other strategies
7-23
Third-Party Endorsements
Your customer
service has been
questionable, and
it is important I
have tech support
24/7.
I agree with you that our
customer service was not what
it should be several years ago.
However, we made the
investment to improve
customer service, and now it is
among the best in the industry.
Gracie Electronics felt as you
did but was willing to try us and
is now one of our best
customers.
7-24
Bounce-Back
• More aggressive than some other
strategies
• Turns a customer concern into a reason
for action
• Often very effective with objections about
needing more time or a lower price
7-25
Bounce-Back
I’ve listened to
your presentation
but need more
time to consider
your proposal.
I can appreciate that this is a
big decision for your company.
However, delaying this
commitment only costs your
company money. As we agreed
earlier, my products will save
nearly 40%...
7-26
Defer
• Most common when the customer raises
a concern about price early in the
presentation before the value proposition
has been defined
7-27
Defer
(before the full
value of the
product has been
explained): What
is the cost of your
product?
I can appreciate your interest in
knowing the price of the
product, but I would ask you to
hold off just a minute until I
know a little more about your
product requirements…
7-28
Trial Offer
• One of the best strategies to calm
customer objections
• Does not take the place of a good sales
presentation
• Clearly define the terms of the trial offer
beforehand
• Make sure the customer is fully checked
out on the product
7-29
Trial Offer
I’m not willing to
make a
commitment to
your copier today.
It seems
complicated and
hard to use.
I can appreciate your concerns.
How about I have our service
department install one for you
and let you try it for one week.
I will come by and demonstrate
it for you...
7-30
Sales Manager’s Role in Negotiating
Win-Win Solutions
•
•
•
Salespeople need to know they have the
authority to negotiate with customers and
resolve their concerns
Salespeople need to have the confidence
that they can negotiate whatever is
necessary
Company personnel must also know the
salesperson speaks for the company
7-31
Sales Manager’s Role in Negotiating
Win-Win Solutions
• Manager is there to step in and continue
the negotiations
• Manager’s support is critical to the
salesperson’s success
7-32
Role Play
http://www.mhhe.com/business/marketing/videos/RS/07_RP_negotiating_win.mp4
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