Whether you’re doing business online or in a brick-and-mortar setting, negotiation skills are important for any sale to be closed. Negotiating with potential customers is part of the sales process and learning how to do it properly could be the difference between success and failure. In a fiercely competitive world, your negotiation skills are going to come in handy. So if you want to hone your negotiation skills and start closing sales, learn a few important tips from Agam Berry below.
Know How To Flinch
This is an old but seldom used tactic that you ought to master. When a potential customer gives you a price offer, you need to make a visible reaction to it, and that is a flinch. This negotiation tactic is meant to make the other party feel uncomfortable about their offer and reconsider. When you flinch, you must appear shocked as this will force the other party into an immediate concession.
Learn that People Always Ask For More Than They Expect
When a potential customer asks for the price of an item and exclaims that it is a bit high, you shouldn’t automatically reduce the price. When someone is in a buying position, they know that they have the freedom to ask for more than they can get so that they can get at least half of that after negotiating. Don’t give in to their request immediately. Settle for a price that gives you reasonable returns.
Have As Much Information As Possible
In a negotiation, the party with the more information stands a better position to get what they want. That means that you must learn as much as you can about the other party, especially if you’re a sales person. Ask the potential customer questions about their purchase. Learn about their needs and what they consider as their most important necessity. Questions to ask include the following:
- “Why are you considering a purchase such as this one?”
- “Do you have experience with a similar product?”
- “What’s the most crucial aspect for you about this product?”
- “What time frame are you looking at?”
It’s also important to get all the information you can get about your competitors. This way, you’ll be in a better position to prevent a potential customer from using your rival as leverage to get an unfair price advantage.
Practice Your Skills
Most people lack confidence to negotiate, so they hesitate negotiating. However, the more you practice how to negotiate, the more confidence you build. If you’re buying from a supplier, practice negotiation skills with them because you’re the customer in this case. Ask questions such as:
- “What’s your best price offer?”
- “What discount are you offering today?”
- “That’s a bit too high; Can you do better than that?”
Be persistent but not demanding. Train yourself to negotiate when the opportunity presents itself. With time, negotiating will feel natural.
Never Lose Your Walk Away Power
Although negotiating with a potential customer may net you a sale, avoid making concessions that are too large or discounts that may hurt your profit. This tactic will give you a great deal of leverage when dealing with potential customers.
That said, this tactic is also the hardest to do when going through a period of slow sales. The most important thing to keep in mind is that there will always be someone to buy your product.
When you follow these negotiation skills by Agam Berry, you’ll be able to close more sales and make reasonable profit. In some cultures, negotiation is a way of life; you too should make it part of your life if you want to increase your sales.