Usually negotiation is perceived as skill that enables you to make a bargain while purchasing an item. But at that time, you think are the only person negotiating to get what you want? Swap sides and you will realize that even the seller is negotiating to get his terms!
Sales Negotiation is an art of dealing with customers or clients to make a profitable deal.
Let us understand the 3 reasons why sales negotiation is so important!
1. Cost of Lead
It is only after spending a lot of money on advertisement, or after farming a lead for months or years, or following up a client for months for a particular reference; is when you get the opportunity to sit with the customer across the table to discuss the deal. Hence, if one walks out of the room empty-handed, one has to write-off all these costs and efforts.
2. Gain for Competitor
When is comes to customer mindset, if a prospect is in the market looking for a particular product or service, he is definitely going to buy, either from you or someone else. Hence, once the customer walks out the room, now armed with information, he/she will proceed to negotiate (a better deal, at least what they think!) with someone else!
3. Psychological Setback
Apart from the monetary cost of lead, with the efforts the sales team invests to reach the negotiation table. The failure to convert the lead at the last junction can lead to disappointment. When such disappointments keep piling up, sales teams can suffer from major psychological set-back ruining their morale and affecting their approach / attitude and thus instigate a downward spiral.
Hence it is of paramount importance for companies to train sales executives for sales negotiation.
Misconception about Sales Negotiation
Many business leaders, sales heads and sales executives mis-interpret sales negotiation as a tug of war on price of the product. But in fact, it is a game of Chinese checkers where both want to achieve the best possible set of terms in the deal and price is just one of those terms.
Visit our blog on Objection Handling and Sales Negotiation Skills to know more.