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10 Tips for Getting What You’re Worth - Negotiation & Objection Handling


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10 Tips for Getting What You’re Worth - Negotiation & Objection Handling by Dan Thompson
Sales Hacker Series - New York City - November 20, 2014

Published in: Sales
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10 Tips for Getting What You’re Worth - Negotiation & Objection Handling

  1. 1. Negotiation & Objection Handling: 10 Tips for Getting What You’re Worth Dan Thompson East Sales Director, Smarsh November 20th, 2014
  2. 2. Negotiation & Objection Handling Tonight’s Agenda I. Objection Handling vs. Negotiation II. 5 Tips for Overcoming Objections III. 5 Tips for Better Negotiations IV. Brief Summary V. Q&A
  3. 3. Objection Handling vs. Negotiation Objection Handling: • Addressing your prospect’s concerns about your product or service in order to create technical, organizational, and personal buy-in • You are still selling at this stage in the process Negotiation: • Attempting to reach mutual agreement about the value of your product or service • You have already been selected as the vendor of choice Remember: Don’t negotiate before the prospect is sold, and don’t revert to “selling” once you’re in negotiations
  4. 4. Overcoming Objections
  5. 5. Objection Handling: Tip #1 Learn From Your Losses • Review your lost opportunities over the past year and look for themes • Which objections came up most often? Which ones were the deal breakers? • What areas will require product development? What can you work or talk around? • Review your near-losses and close calls; opportunities you won but almost didn’t • What were the biggest hurdles to closing the sale? How did you overcome them? • Use these insights to create a “cheat sheet” of common objections and craft 2-3 potential responses for each. Test them out and revisit them often.
  6. 6. Objection Handling: Tip #2 Understand Your Prospect’s Real Concerns • Why is the objection an issue for them, and why are they bringing it up now? • No assumptions. Guessing at the prospect’s intention can put the deal at risk. • In order to truly understand, you must: • Validate and acknowledge the prospect’s concern (nurture) • Understand the problem they’re facing and the reasons behind it (ask why?) • Respond only once you’re sure you understand the real concern • Never answer a question without understanding the context behind it! • When in doubt, place the ball back in the prospect’s court. It’s their job to clarify.
  7. 7. Objection Handling: Tip #3 Stop Putting up Speed Bumps • All prospects have a vision of their ideal solution. This gets them ready to buy. • Your job is to help them realize that vision, not distort it. • Salespeople distort their prospects’ visions by: • Answering un-asked questions • “Pitching” unwanted features and benefits • Generally misaligning your solution to their pains or use case • Saying anything that creates unnecessary risk in the prospect’s mind
  8. 8. Objection Handling: Tip #4 Go for the “No” • “Is it over?” “is this going to be a deal breaker?” “should we just call it quits?” • “Walking away” tests an objection’s importance and identifies the prospect’s real concern • When there’s a particular objection that comes up repeatedly, don’t wait for your prospects to bring it up. Get it on the table early and seek resolution. • This builds genuine credibility and rapport • Don’t worry: Just because you’re walking towards the door doesn’t mean you have to go through it... unless, you want to.
  9. 9. Objection Handling: Tip #5 Understand That Pricing is NEVER the Real Issue • There is a direct correlation between pricing and conviction (value) • Less certainty your product will solve their problem means greater pricing pressure • Solution: Learn what your prospects would need to see to justify paying more, then show them you can deliver (ROI) • In other words: Let your prospects answer their own objections.
  10. 10. Better Negotiation
  11. 11. Negotiation: Tip #1 Have a Game Plan • Determine your pricing “envelope” – your best, worst, and most likely scenarios • Create a list of potential negotiables – setup fees, minimum commitments, etc. – and assign trading values. Remember that contract terms have value too. • Know your non-negotiables and stick to them • Remember your prospects will have their own envelope and negotiables too. Worst Case Best Case MOST LIKELY Best Case Worst Case MOST LIKELY
  12. 12. Negotiation: Tip #2 Consider Your Prospect’s Environment & Business Drivers • What do you believe is of value to this particular prospect? Why? • Internal & external factors influencing their decisions may include: • Buying team, business challenges / goals, and individual motivators • Short- and long-term strategy – expansion, relocation, new technologies, etc. • Competitive pressures, market trends, and general business environment • Determine their most likely alternative – a competitor, develop in-house, or doing nothing • What unique advantages does your product or service provide? • This will determine how much leverage you have
  13. 13. Negotiation: Tip #3 Never Give Anything for Free • Always get something comparable or greater in return when you give concessions • Know what items could sweeten the deal for you: • Commitment to sign within an agreed-upon timeframe (EOM, EOQ, etc.) • Longer initial term (annual vs. monthly contracts, multi-year agreements) • Case study or reference account, use of logo in marketing materials • Introduction or referral to other potential clients • Better payment terms (upfront vs. monthly payments, shorter collection times) • “Freebies” lower your solution’s (and company’s) perceived value
  14. 14. Negotiation: Tip #4 Know When NOT to Negotiate • Providing certain concessions create undue risk to the business, regardless of how much you may want the deal, the new logo, or the revenue • Owners and Sales Managers: It’s your job to know when these times are. • Set guidelines, implement check-and-balances, and stick to them. • This is easy if you’ve done a good job creating your pricing envelope and valuations • Live to sell another day…
  15. 15. Negotiation: Tip #5 Quarterback the Process • Consider the various buying centers involved: project sponsors, technical buyers, legal, procurement, etc. • You must always be working these functions in parallel • As the seller, it is your responsibility to drive the procurement process
  16. 16. One Final Tip:
  17. 17. In Summary Successful objection handling and negotiation ultimately comes down to: • Knowing yourself, your customers, and your marketplace • Remembering that “pricing” is really about conviction • Having a game plan and never giving anything for free • Owning the process and maintaining control • Never taking things personally
  18. 18. Questions?
  19. 19. Thank You Email: Connect on LinkedIn @dethomps8069