Know When to Hold 'em, Know When to Show 'em
November 29, 2010
As sales people, we focus on one main objective…closing the sale. With that objective always roaming in the back of our mind, we can be blinded when deciding what to give and take during negotiations. Knowing when and how to play your cards can ensure you always have the winning hand.
Let’s jump forward in the sales process to the closing. Up to this point, you’ve asked all the right questions, delivered a spot on presentation, and now, you’re ready to ask for the business (we can’t get the business without asking for it, right?). Here’s an example with John (sales rep) and Jane (customer):
John: Jane, based of all the information I’ve provided, has ABC Company earned your business?
Jane: Well John, I’m not quite sure. I like what you have to offer, but you’re price is a little higher than your competition.
Now, freeze the action! This is where the number one mistake in negotiations takes place. Sure, John can probably lower the price to meet the competition, but is price really the objection Jane is presenting? If it’s not, and John jumps the gun, then he just gave away the company’s money, likely part of his commissions, and also lost one of his aces he could have used later.
Fortunately, John is on top of his game today, and decides he’s going to dig deep and isolate the true objection that Jane is presenting (before he gives away anything).
John: I appreciate your honesty, and I want to understand your concern a little better, so we can make this work for the both us. How did you determine the total cost of your program over the next few years with the other companies?
Jane: I simply took the price they gave me and multiplied it out over the course of the agreement.
John: Ok, how did you take into account any start-up fees and price increases implemented by their agreements?
Jane: Well John, come to think of it, I didn’t.
John: I can understand. Most customers I deal with don’t realize they even have these charges built in. Jane, if I can show you how with ABC Company you will end up with a lower total cost over the next few years, would there be any reason to prevent us from moving forward?
Jane: If you can do that, I don’t see any reason why we couldn’t do business.
Since John spent the time to talk with the customer and understand her objection, he will not need to lower his price. Instead, a simple explanation of the overall cost of the program built rapport with the customer and helped ensure a profitable account. By holding his cards back, John was able to stay in control of the meeting and come out with an outstanding victory.
