Many sales leaders often tell us that their sellers just need to be better at closing. Often, they point to their sellers’ negotiation skills and want them to get trained on sales negotiations. These are common complaints and also one of the most common misconceptions.
Sales teams tend to think that negotiations only happen at the end of the sales cycle. It’s true that there are specific techniques and skills needed to close a deal and leave a client confident about their decision. Sales leaders, sellers, and account managers, however, often lack clarity about where in the customer’s decision journey selling becomes a negotiation effort.
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For many companies, a stage where negotiations are appropriate often generate conflict and hard feelings on both sides. Negotiations, in other words, often devolve to emotional "arm wrestling" where concessions by each side leave a sense of dissatisfaction. This can be avoided by following best practices from the very start of the sales cycle. In many ways, sales negotiations start from the first call with a client or potential customer.
For example, pricing is a common point of contention towards the end of the sales cycle. Salespeople end up having to give discounts to take the deal over the finish line. It is a frustration that makes sales leaders think that their sellers need to be better at negotiation. However, issues around pricing can be mitigated from the very start of the sales cycle by helping prospects define a clear vision of what success looks like. It is one of the steps involved in consultative selling. If sellers are seen as decision coaches that can provide value beyond just the product or solution, the sale is much less likely to get derailed by price sensitivity.
Whether the negotiation involves a first-time/one-time sale or are part of a renewal process, contentious negotiations can be avoided. Any seller, account manager, procurement or finance professional can benefit from learning what research has revealed to be true best practice.
Sellers often find themselves in the position of having to negotiate final details of a contract. It usually involves more than just price. Positioning a win-win negotiation begins much earlier in the sales effort. Sales negotiations training involves learning how to prepare, strategize and tactically execute a negotiation which leaves both parties feeling heard, confident they got "a good deal", and sees the whole sales cycle as a negotiation process that minimizes friction and/or conflict.
There are many situations where leadership might conclude that they need sales negotiation training. Before reaching that conclusion, sales teams should consider some other potential factors.
Sales teams see issues around pricing as a result of poor negotiation skills. However, the best way to mitigate discounting is to sell in a consultative manner. Buyers are more than willing to pay a premium for a solution if they see the seller as a decision coach that adds value to their organization. Before jumping to the conclusion that you need sales negotiation training, you might want to consider if your team is selling in a consultative manner.
If your deals are getting stuck in the very first stage of the sales cycle, the issue might be around qualification. Perhaps sellers are not properly vetting opportunities and lack the skills to recognize winnable opportunities. However, if your team is successfully moving deals down the line but get derailed in the final stages when the details of the solution are being ironed out, there might be a need for negotiation training.
A low close rate or lack of closed deals does not always point to bad negotiation skills. The problems could start much sooner. Sellers don’t enjoy prospecting so this part of their job often falls to the wayside. Consistently filling the funnel can be one of the best antidotes to a low volume of closed deals. Examine this part of the sales team’s process before jumping to the conclusion that they need negotiations sales training.
Funnel Clarity’s negotiation training, Negotiate a Win-Win©, like all of our content, is based in research into effective tactics. The training emphasizes knowing how best to limit the number of negotiable issues, to prepare/plan a negotiation and when/how to use elements from the library of effective techniques. Overall, it teaches how to ensure that both parties feel heard, deal in compromise where appropriate and leave the negotiation with both parties feeling good about the conclusion.
Negotiate a Win-Win© training is centered on preparation and execution. Training programs can be too heavy on theory and principles of negotiations. Funnel Clarity aims to provide actionable learning and teaching skills through examples and role play. This training introduces a methodology for planning and preparing, as well as how to position and execute negotiable issues to arrive at the desired outcome. It will involve:
A process to prepare and plan for a negotiation.
Knowing how best to manage and limit the negotiable issues.
Planning around who on the customer side will be negotiating.
When to use effective negotiation tactics.
How to ensure that both parties feel heard.
Dealing in compromise, where appropriate.
Leaving the negotiation with both parties feeling good about the conclusion.
This approach to negotiations will help sellers ensure a productive and collaborative approach with customers during this final step in a sales process. It will result in less discounting, clearer confirmation of "wins" and a more positive exchange with buyers.
Let us help you diagnose if sales negotiation training is right for your team.
Tyler Vance works closely with the participants and managers of Funnel Clarity’s training programs to ensure they achieve their expected results. Throughout Tyler’s career, he has experienced both a seller’s and buyer’s point of view bringing a unique perspective when working closely with Funnel Clarity clients. Whether Tyler is answering questions from participants, running a coaching session, webinar series, or working with managers to develop a reinforcement plan, he brings a unique and fun element into every part of his role.
