The goal of every business is to make money or a profit. How a salesperson negotiates can determine whether a prospect signs on the dotted line or walks away to a your competitor. Consistently closing deals comes down to skill levels, not luck or pushy sales gimmicks.
If you attend sales training in New York City, here are a few tips that you’ll learn about how to negotiate to close more deals.
Qualify leads early
In sales training, you learn that how you start a negotiation usually determines how it will end. How often have you spent time on a potential customer, only to have them pass on the deal? According to Invesp, 80% of new leads never translate into sales.
It takes time and effort to convert a prospect into a paying customer. Time is money, and time is also a nonrenewable resource. So, qualify your leads early so you can close more deals. Qualification means determining the likelihood that a prospect is a suitable fit.
Sales training experts recommend asking the following questions to qualify potential customers.
- Does the prospect have a current need for your product or service (preferably a compelling one)?
- Does the prospect have the money to buy what you are selling?
- Can you provide more value than the prospect’s current vendor?
- Is your prospect unhappy with their current vendor?
- Is the person you are talking to the ultimate decision-maker, or do they have easy access to the budget holder?
Listen first, sell second
How to listen is a topic that surprises many people when they take a sales training course. One of the main reasons why is that most people think “selling” is the same as “talking.” However, what makes a salesperson an effective closer is the ability to listen actively.
Active listening helps increase understanding and build rapport. You also get to learn why prospects buy, how their buying process works, and what objections they might have.
Here are a few sales training tips on how to listen actively.
- “Listen” to nonverbal cues (tones of voice, facial expressions, gestures, and other body languages)
- Avoid interrupting
- Give the speaker some proof that you are listening
- Ask questions that improve understanding
Sell the solution, not the product
Solution-based selling is about showing potential customers how your product or service meets their needs. This strategy can help you close more deals because most business people want to buy solutions to their problems, not products. As Harvard marketing professor Theodore Levitt once said, “People don’t want to buy a quarter-inch drill bit. They want a quarter-inch hole.”
To sell the solution and not the product, sales training experts say you need two key pieces of information. First, you need to know all the benefits of your product or service. Next, you need to identify how those benefits will solve your customer’s problems. The more benefits and solutions you can provide to your customers, the more deals you are likely to close.
Ask for the deal
Finally, and maybe most importantly, ask for the deal. Asking for the deal is critical for success in selling. Jack Canfield, the co-author of the bestselling Chicken Soup for the Soul series, once said: “If you are not moving closer to what you want in sales (or in life), you probably aren’t doing enough asking.”
Despite how attractive and exciting your sales pitch sounds, prospects are unlikely to buy until you ask them to. Timing is crucial when asking for a deal. Ask too soon and you risk turning into the stereotypical pushy salesperson. Master negotiators recommend asking once you’re confident that you have the best solution for the buyer. If you’ve done a great job understanding your customer’s problem and linked your solution in your customer’s eyes, then your customer will very often ask to buy.