Closing in Sales
The most difficult part in an equipment sale is the closing, most negotiations are stuck at last 3-5% of the final value.
For salesperson its the panic urge to close at the earliest the fear of a lurking competitor or a change of mind of a customer
For the buyer it’s the fear, is he paying more? Is he taken advantage of? Has he got the best deal? Is there a hidden cost?
In the end the person the who holds the nerves gets benefit, usually it’s the customer, because its his money, he directly stands to gain if he gets a better deal , for the sales man its the company's money not much benefit with a better price
The sales person who comes under pressure & closes with a big discount loses value not only on the particular sale but on all future sales as the low price given spread faster than forest fire.
A salesman who takes more than the market price runs the risk of losing the trust from customer who he has charged more
It’s a tight rope walking, so what is the solution?
Value based selling is one of the first way, showing why should a customer pay more
Second is refusing to come under pressure from a smart buyer, refusing take higher price from a customer who trusts you
Why does a salesman come under pressure during negotiations? Because he has limited options & the month is about to close
Best ways to get more is to show value & have more options
More about value selling and how to increase the prospect base in next article
Techno
5 年Brief & Better way to Explore Marketing Mind
Channel Appointment and Development Manager
5 年"Best ways to get more is to show value & have more options"......Sir I followed this approach and succeeded in knowledgeable and application oriented customers.In this approach I educated many farmers about options in the product and how they benefited and worth for money.Finally market ended up with a result that products sold more that customer wants than the products sold with many features that manufacturer have.
Founder- Director at SALES ENABLERS
5 年Fully agreed the sales should be firm and say value is not free if he doesn't do his homework he succumbs to the pressure.
Provide support services in Architectural, Engineering and Construction industry
5 年There r 2 types of customers in B2B sales...one values brand as he perceives less risk if he purchase ffrom them...the second one is smarter who negotiates vth best/medium brands technically & commeecially & then asks " most valued brand" to match the least brand price...in this process, he gets the best i both ways...here salesman's patience n courage to say " No" comes to test... here a knowledeable sales man sells on " value" than on price..
Sales Business Development @ Palo Alto Networks | MBA, India & SAARC
5 年Ravichandran V?Good thoughts.. Well I did my internship at a CNH industrial in Orissa market covering all major cities. I got to know few things and I am sharing here: 1. Brand perception matters a LOT!!. I mean I found out people recall excavators & compactors as "JCB wala machine" rather calling with their actual names. 2. Most of the sales are made out of credit based and upfront money burns the pocket of the customers. 3. A good dealer or touchpoint will just make your life easier. Do let me know if I am wrong in the observation.. Regards