By — on July 21st, 2022 / Business Negotiations In sales negotiations, making the first offer is often a smart move. The first
offer can anchor the discussion that follows and can have a powerful effect on the final outcome. But if the other party makes the first offer, you’ll need to be prepared to frame your counteroffer carefully. What is framing in negotiation? It involves crafting your offer to improve its appeal. When you frame your counteroffer with a strong rationale, you may increase your odds of re-anchoring the discussion. In this article, we present four effective sales negotiation techniques, beginning with framing your counteroffers for maximum advantage. Choose the Best RationaleTwo common types of rationales in business negotiation are (1) constraint rationales and (2) disparagement rationales. A constraint rationale focuses on what’s holding you back from accepting the other side’s offer, such as not being able to afford what they’re asking. By contrast, a disparagement rationale critiques what the other party is offering—for example, by suggesting the quality is low. In a recent study, researchers Alice J. Lee of Columbia Business School and Daniel R. Ames of Columbia University compared the effectiveness of these two types of rationales. They found that sellers were significantly more swayed by buyers’ constraint rationales than by their disparagement rationales. Why? First, the researchers note, sellers may view the criticism in a disparagement rationale as inaccurate and rude, and react by standing firm on price. Second, when buyers describe their financial constraints, sellers may take them at their word when they say they can’t afford the deal on the table. Thus, when responding to a seller’s offer, a buyer is likely to get a better deal if he accompanies his counteroffer with information about his financial constraints than if he tries to diminish the value of what’s being sold. Similarly, though this hasn’t been tested, a seller facing a buyer’s first offer may get a better deal if she says she can’t afford to go lower than if she disparages the buyer’s BATNA, or best alternative to a negotiated agreement. 3 Other Top Sales Negotiation TechniquesHere are several other effective negotiation skills for sales professionals:
What other sales negotiation techniques have you found to be effective? Related PostsWhat are the presentation methods used by salespeople?11 Effective Sales Presentation Techniques. Use the “Five-Second Rule” ... . Talk like an executive. ... . Involve key stakeholders. ... . Present solutions to painful challenges. ... . Make it memorable. ... . Prepare valuable insights. ... . Don't lead with your differentiators, lead to them! ... . Master the art of trial closes.. What are 4 common methods of sales presentation and demonstration?4 Sales Presentation Methods. memorized,. persuasive selling,. needs-satisfaction, and.. problem-solution method.. What should a salesperson do in the beginning of a group sales presentation?Professional Sales Skills
A sales presentation should start thoughtfully. The salesperson should first introduce themselves and then they should provide a genuine insight about the company. This helps them to build credibility with the prospects and also to maintain a healthy relationship with them.
Which type of selling method is a presentation by which the salesperson follows a general outline that allows for flexibility and tries to determine prospect needs?The Formula Presentation (persuasive selling) The salesperson follows a less structured, general outline in making a presentation, allowing more flexibility and less direction (AIDA).
|