When a buyer asks for an unreasonable concession during sales negotiations, what do you do? How do you react? Do you concede? Get frustrated?
The Answer is Logic
So what should you do? Use logic-based reasons or stands to explain why you shouldn’t have to make concessions.
For example, if the buyer requests a price reduction, you could remind the buyer of the estimated ROI that you both agreed on during the evaluation process. Ask something along the lines of, “Has anything changed? I thought we all agreed that the value significantly outweighs the cost.”
The advantage of this is that you avoid saying no, while enforcing the potential value provided and compelling the buyer to explain his position.
Third Time’s the Charm
You should attempt to resist concession requests up to three times. Resisting three times communicates that if you give in at all, it will be limited and there will not be any further concessions.
Now, you might be wondering, “Three times? How do I resist three times?”
Well, there are many types of stands that you can use. Some common ones include recalling the buyer business issue or pain driving the opportunity and reiterating the quantified business value associated with fixing the problem. The power of your stands are based on knowledge and the work you’ve done during the sales cycle to uncover and build value. However, these will not work if you haven’t first established the value of your solution with the buyer, prior to negotiations.
Prepare Your List Beforehand
You should create a list of potential stands before the start of negotiations. Use the negotiation preparation worksheet to plan your stands. Make sure to included detailed metrics that you can communicate back to the buyer.
With your stands in hand, you’ll be able to better resist concessions, reinforce the value you provide, and keep your negotiations positive.