Failing to Close Business Deals? Try This Art of Negotiation and Bag a Contract

Sales personnel function in a high-stakes environment where any make or break in the deal can directly affect the business. Their ideal goal is a successful business deal with mutually beneficial outcomes for all parties involved.

As a sales personnel, you must be familiar with conversation flow scenarios where terms are aligned and a positive end seems in sight. Yet, chances are, you’d not close the deal. If this resonates with you, it's time to consider that the problem may not lie in the offer or the opportunity but in the subtleties of your negotiation strategy.

When it comes to sharpening sales skills, negotiation often remains one of the often underestimated aspects. But it's an art that helps close deals.

In this piece, we will dive deep into the essential art of negotiation that promises to arm you with the precision of a skilled artisan in the craft of deal-making when closing leads.

#1. Communicate value, not price

When negotiating with a sales lead, you don’t want to lose a client because of a price mismatch. Conversely to bottom-up selling, where you showcase the least expensive product, you will justify the price with a value it offers. Make it clear how it solves a problem or enhances their efforts through efficiency.

Every client has a unique set of priorities and challenges. The concept of value is subjective; it shifts based on the client's perspective and current needs. Be a powerful negotiator who digs deep to understand the values that your prospect seeks. It can be efficiency, quality, service, innovation, or reliability.

Therefore, when negotiating a sales deal, align your product's strengths with values your prospect highly emphasizes. This also helps create a compelling narrative that price alone cannot compete with.

Here’s how to put this art into action.

Offer USP: Identify and communicate the unique selling proposition of your product by telling the prospect what makes your what makes your offering unique. Thinking about what works best for this client? Are they looking for product durability, efficiency, or after-sales service personalization? Ensure keeping a USP as the cornerstone of your sales narrative.

Infuse consultation as a selling approach: Be with your prospect throughout the sales cycle by adopting the Q2C (Quote-to-Cash) philosophy, where you take on the role of a trusted advisor instead of the mere seller. This approach is central to the Q2C process that involves everything from initial product configuration and pricing to final deal closure and revenue recognition. Understand your client's business and their organizational role deeply to position yourself to tailor your product or service as a comprehensive solution. This enhances your sales strategy's effectiveness and streamlines the entire sales cycle, ensuring a smoother transition from generating a quote to successfully closing the deal.

Conduct value demonstrations: Try showcasing your product in action rather than just discussing it. On average, you can make one sale for 4 to 6 product demos, indicating a conversion rate of 15-20%, where about one in five demo attendees make a purchase. Leverage demonstrations, trials, and pilots that can be persuasive in showing the tangible benefits. Prospects love to see the product work in their environment, showcasing the true value proposition to a potential client.

#2. Engage in active listening

Remember, humans make 95% of their decisions in a subconscious mind. So, getting there requires exhibiting a positive experience with the lead. This is where you will use the art of listening.

It involves hearing words, interpreting tone, understanding context, and reading non-verbal cues. The goal is to create a receptive space where the prospect feels heard and understood.

When you engage in active listening as a part of the negotiation process, you will gain insight into the client's values. It helps analyze your client's needs for a product/service. It could be cost efficiency, long-term ROI, quality service, or something as simple as feeling secure in their choice.

Listening with a focus on knowing clients helps shape your proposal to address these priorities by identifying their core concerns.

Here’s how you can actively listen to negotiate with a client.

• Give attention: Focus entirely on them. Avoid distractions like checking a mobile phone and even the temptation to plan your response while they're talking.

• Keep responding: Show that you're listening by using appropriate body language, nodding, or interjecting small verbal affirmations like "I see" or "Understand."

• Reaffirm: Reflect on what is said. This way, you must paraphrase or summarize the speaker's points to confirm your understanding.

• Clarify: Ask clarifying questions to show that you are engaged. This also encourages your prospects to expand on their thoughts.

#3. Learn to say no

Say 'no' effectively to reject an offer and set up a standard for the negotiation. This communicates your commitment to value. It conveys that you clearly understand your business's worth and limitations.

It is not about being inflexible but helps foster a negotiation environment where both parties can openly define their deal-breakers and must-haves.

The strategic 'no' also opens the floor to the other party. It invites them to return with a counteroffer, leading to a more earnest and transparent negotiation. It's about balancing your firm stand on the core offerings and being adaptable enough to craft a deal that delivers mutual satisfaction.

Here’s how to cultivate this art.

• Offer alternatives: When you say 'no', provide your prospect with an alternative solution or option. It shows you're still committed to finding a workable resolution while a specific request can't be met.

• Practice empathy: Understand that a 'no' might disappoint the future client, but also try acknowledging their perspective and showing that you understand their needs. Such an empathetic approach helps ease tension and maintain the relationship for future dealings.

• Prepare your 'no': Anticipate scenarios where you must say 'no' and plan your responses. Consider role-playing with a colleague to refine how you'll articulate this while maintaining a positive and constructive tone. Ideally, your no should not sound reactive but a well-thought-out strategic move.

#4. Emphasize the cost of inaction

Lastly, you will want to show your prospects what they stand to lose by not taking action. It can be a lost opportunity for growth, continued inefficiencies, or the risk of falling behind competitors.

When negotiating, highlight the consequences of inaction while emphasizing the cost of inaction. A strategic sales approach helps effectively move the needle toward a close. This tactic is not about instilling fear but about painting a realistic picture of the consequences that come from not addressing a pressing issue or opportunity.

Here's how you can apply this strategy effectively.

Showcase missed opportunities: Show your clients the opportunities they miss by not using your product or service. This could be regarding market share, revenue growth, or technological advancement.

Ensure personalized communication: Tailor the narrative to the client's specific pain points and aspirations. Make it clear how inaction can personally affect them, whether through lost bonuses, increased workload, or diminished industry standing.

Give numbers to the impact: Provide clear, data-backed insights into what inaction could cost the client. For example, if your product increases efficiency, calculate the daily cost of its current inefficiencies and project it over time.

Wrapping up

Closing a sales deal will include more than just the above-mentioned tactics. In a negotiation, you’ll need to realize that the subtlety lies in the execution about when to pivot, pause, or press on. As you deploy these tactics (or others), you will see each conversation as an opportunity for a positive outcome.

As you approach prospective leads, remember to refine your approach every time depending on their needs, business types, pain points, etc. Ideally, you’ll need to learn more about the human elements that drive decision-making. At its core, sales is about connection that matches a solution to a need, your value to a void, and your vision to a client's aspiration.