Even if you think you may have a deal in the bag and ready to sign up there is still the possibility of walking away empty handed. Typically deals fall apart during the final stages of negotiations – so this is your time to make sure you are doing everything right. Below are the 4 most common mistakes a sales rep can make when negotiating a deal. If you read this list and any of these sound familiar to you then it’s time for you to make a change in your tactics so you can start closing more deals.
Not negotiating with the signing authority
If you can identify the ultimate decision maker early in the sales process, you will be much better off. Unfortunately, this identification is not often made until the negotiation phase. If you start negotiating with someone who does not have the signing authority, you risk losing out big time. Say you go through and make some concessions and settle on a number less than your regular price. If you have you have done so with someone who does not have signing authority, you will have to start the negotiation process all over again with the person who does, only this time instead of starting at your regular price, you have to start at the one you agreed to with the previous correspondent.
Using lump phrases
You may think you sound confident in your sale when you throw around phrases such as “this is non-negotiable” or “it’s a deal breaker.” In reality, the more limitations you establish in the negotiation, the less likely it is to be successful. To enable both sides a successful negotiation, you must be open-minded and flexible. Putting the most options out there as opposed to the fewest will actually benefit you.
Over negotiating is one of the biggest mistakes a sales rep can make. You want to make a sale, but you do not want to seem desperate. If the prospect makes a statement of the threshold they are willing to pay, do not immediately jump to change the price and give them a contract without a signing date. Instead, ask clarifying questions about why the prospect needs the price below a certain amount. This will help both parties come to a mutual agreement and the prospect will know exactly what value they’re getting for the purchase price.
Not properly preparing
Rushing into a negotiation without thoroughly preparing. You may think you know what you want to get out of the deal, but that is not enough. It is important to take the time to analyze all aspects of the negotiation with care and come up with a BATNA, or best alternative to a negotiated agreement. If you can’t reach an agreement during the negotiation, your BATNA is the best alternative course of action. Establish at which point you will walk away to help yourself make rational decisions.
Are you looking to fine tune your negotiation skills? Apply to become an ISO/Agent today with Beacon Payments.