Sell Value First; Negotiate Secondby Nick Miller
When sales people begin negotiating on price too early to get the deal, they give up the bank’s value and margins.
The solution: spend time building up the value side before you start negotiating.
- Correctly identify the client’s problems.
- Clarify the implications of those problems for the client.
- Know what additional costs, delays, or lost revenues are at stake.
- Know how much the bank’s solution could save the client.
When you have thoroughly explored the value side, then, when negotiation begins, you are in a position to start high on price because the perception of value is high. If you fail to build a compelling value before offering a price concession, you’ve adopted a risky and potentially expensive strategy.
Want more tips on positioning value? Check out our July 19, 2011 live webinar – Selling the Value of Bank Solutions. It’s part of Clarity Advantage’s Deep Diving into Sales Techniques summer webinar series. Coaching material for sales managers. Actionable tips and strategies for sales people. No charge. Find out more here.