Six-Step Presentation Plan

2. Six-Step Presentation Plan 13.1 FIGURE

3. Negotiation: A Win-Win Strategy • Focus on integrative negotiations: • Joint problem solving • Trust and rapport • Win-win relationship strategy • Trust and rapport must be maintained on the front end and throughout process • Goal = Maintain long-term relationship

4. Planning for Formal Negotiations • Gather information before negotiation • Decide team versus individual negotiations for both seller and buyer • Understand value of what you are offering • Determine goals and financial objectives

5. Planning for Formal Negotiations • Prepare an agenda • Review adaptive selling styles • Use the Negotiations Worksheet

6. The Negotiations Worksheet 13.3 FIGURE

7. Conducting the Negotiation Session • Understand the problem • Create alternative solutions that can add value • Periodically review acknowledged points of agreement • Do not make concessions too quickly • Be mindful of your timing (Pareto Law) • Know when to walk away

8. Common Types of Buyer Concerns • Customers may have concerns related to: • Need for the product • Product or service • Source of the product • Time • Price

9. Need for Product • Conditioned response: “I don’t need the product” • Sincere need resistance a great challenge • Not convinced of your product’s benefits • For business prospects: Prove your product is a good investment

10. Concerns About the Product or Services • Product not well established • Present product/system is satisfactory

11. Concerns Related to the Source of Product • Especially challenging when prospect is a strategic alliance buyer • Positive ways to overcome include: • Identify how product solves problems • Point out superior benefits of your product and your company • Recruit internal champions to build more support for your message • Stay visible and connected

12. Concerns Related to Time • Also known as “the stall” • Customer does not perceive benefits of buying now • Customer sees both positive and negative in product • Consider probing questions to determine negative feelings

13. Concerns Related to Price • Price is one of the most common buyer concerns. • Skillful negotiation is required. • Price objections may be nothing more than an excuse. • To most buyers, value is more important than price. • Position product or service with convincing value proposition. • Customers who perceive added value are less likely to object on basis of price.

14. Creating Value During Formal Negotiations • Do clarify price concerns with questions • Do add value with a cluster of satisfactions • Do not make price focal point • Do not apologize for the price • Do point out the relationship between price and quality • Do explain and demonstrate the difference between price and cost

15. Specific Methods for Negotiating Buyer Concerns • Direct denial • Refute prospect’s opinion or belief • Be firm, not offensive; think win-win • Indirect denial • Acknowledge prospects as partly right • Feel-Felt-Found • “I understand how you feel.” • “Others have felt that way until they used the product and found it quite easy and reliable.”

16. Specific Methods for Negotiating Buyer Concerns • Questions • Convert problem into need-satisfaction question • “What would a 10 percent reduction in employee turnover save your company?” • Superior benefit • Acknowledge prospect has valid concern and focus on superior benefit • Demonstration • Discuss competitive advantages of your product • Demonstrations overcome buyer skepticism effectively

17. Specific Methods for Negotiating Buyer Concerns • Trial offer • Prospect tries product without purchase commitment • Third-party testimony • Favorable testimony of a neutral party can be effective • Postpone method • Postpone response to buyer concerns • Combination methods

18. Working with Buyers Trained in Formal Negotiation • Budget limitation tactic • Take-it-or-leave-it tactic • Let’s-split-the-difference tactic • “If . . . then” tactic • “Sell low now, make profits later” tactic