Closing a sales negotiation is the key aspect in selling. Many a field executive struggle to close the deal when there are objections to the proposal. The objections from a prospect can be related to a feature, price, usability etc. The price objections are generally difficult to handle, here are some easy tricks to handle price objections
Timing- This is the most key aspect of the sales negotiation. A sales executive should never start with prices in deal closure until and unless the discussion on all the other aspect of the deal has been discussed.
Why? Early price negotiations lead to more concessions. Prospect may add on freebies For e.g. the prospect may ask for the freebies or another concession before closing the deal.
A sales executive can simply request saying “I can give the price, let me first understand what is the use of item”. This leads to discussion to the value of the deal
Focus on the value rather than price- It is better for a sales executive to draw the attention of the prospect towards what can be achieved through this deal or product rather than focusing to save on the price. The prospect may not have a full information as how this deal or product feature can be of help in other aspects.
The sales executive should be able to demonstrate the higher value than the price of the deal by building interest on an outcome. For e.g. A prospect may be inclined to say that the price of a Juicer is higher than the other brand, then sales executive should be able to provide pointers of a better motor, casing, wiring etc. Or point on no. of service centers, legacy, references. This will lead prospect to believe he is getting a good deal and prospect will be able to get the desired outcome without many problems
Understand motives and avoid haggling: Sometimes a prospect has made mind for closing the deal but needs satisfaction of buying with discount. In such cases either sales executive should give a minimum discount and ask for immediate closure with a letter of intent, purchase order or advance money for booking.
In some case, the prospect is not the decision maker and want to leverage discussion for first level discount leading to a final decision maker for more discounts. In such case, if sales executive ask for LoI or PO, the intention of the prospect become very clear and negotiation can hard stopped saying we will need to meet the decision maker.