5 Negotiation Tactics for Closing Sales
Sales are the lifeblood of any company. No matter how big or small, sales keep a business afloat. Without them, your business will not survive for long. Many people think it takes years to get good at negotiation tactics and close deals with ease. Negotiation is an integral part of sales. But, like most things in life, people overcomplicate it.
If you have ever been involved in a business negotiation, you know how difficult it can be to agree. Often, the negotiations will go on for hours with no progress being made. Even when there is some compromise between both parties, they may not feel that they are getting the best deal possible. They could walk away from this, unsatisfied with their outcome. If only there were a better way to negotiate deals so that everyone felt like they were getting an excellent result? Well, lucky for us, there is! Here we will discuss five tactics that can help make negotiating much easier and more productive:
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Start with the Lowest Price
The first tactic is the classic one; you start with your lowest price point possible (assuming there isn’t a firm set price). This way, if your prospect doesn’t want to pay this amount, you have room for further negotiations without making too much of a concession upfront. However, if they accept it right away, then at least you know what their budget limits are. This makes them notice not to try anything ridiculous later on because “you already gave me that discount during our negotiations.”
Be prepared when negotiating
Know what you want out of a deal and understand your opponent’s situation. Knowing everything about both parties allows you to make more informed decisions, which benefits everyone involved. The more information you have, the easier it is for both sides to agree on terms.
You can achieve this by saying that the price has been slashed or something similar. This will put them under pressure to lose out on an opportunity if they don’t act fast enough. This leads to them buying right away so as not to miss out on the deal. People hate feeling regretful for missing opportunities. Also, there’s nothing worse than thinking, “if only I had bought this yesterday.” But if you use language such as “I am sure you’ll want to take advantage of these offers before we expire” instead, your prospects will feel a sense of urgency, and probably, you will close the sale right there.
Advertise your Product/Service
Another tactic is to let your prospect know that they are getting something even better than they originally asked for. This could be anything from free shipping to extra bonuses; this way, when closing sales, your prospects’ primary concern is whether they should buy if they can afford it. Suppose you convince them that buying now beats waiting. Then the chances are excellent that you’ve sealed the deal with minimal effort, which rarely happens by accident.
Use a Proven Technique
Another tactic is called “the rabbit hole technique”. Instead of taking yes for an answer as soon as you receive it. You go deeper into the discussion until they are so invested in what’s happening that there is no turning back. This tactic can be effective when done right because once your prospect feels like they have to choose between two poor alternatives (buying vs. not buying).
For the need it now technique, instead of asking for permission. You tell them how things will work out if they refuse or don’t commit themselves fast enough. This could be phrased as something like “I’m sorry but we’re all sold out,” which makes whatever product/service seem scarce and more valuable than before.
Many negotiation tactics can be used for closing sales, and these are only a few. Making your prospect feel like they are getting something even better than what they originally asked for. Letting them know they are getting an excellent deal by using psychology. Also, telling them how things will play out if you don’t close the sale fast enough could lead to incredible results when done right!