Closing a sales deal can involve a lot of negotiation. Sometimes, it can be about the price and other times it may just take some extras like features or additional monthly trials.
It is important to have a plan for closing deals before you enter a negotiation. This will help you have a better understanding of what you can and cannot compromise on.
1. Focus on the Needs of the Opposing Party
Closing a deal requires you to understand what your client needs and create a scenario that is mutually beneficial. This is difficult to do if the customer is pushing back and creating conflict. If this occurs, remind the customer that they are trying to get more than what you can offer. Ask them what they are doing to create a problem, and then ask them if they are willing to stop this behavior.
Often, negotiations are prolonged because the other party is hiding their real intent. During the closing process, you can find out what is really going on by asking questions that reveal their true intent. Asking open-ended questions rather than yes or no questions helps you gain valuable information that can help you close the deal. It also shows that you are paying attention and listening to the other side. Restating the mutual benefit that will result from a successful negotiation can also help move the process along.
2. Remind the Opposing Party of Your Needs
When closing a deal, it is important to remember that you have your own interests to protect. You may reach a point in the negotiation where it seems like all options have been exhausted, but you should remind yourself that your goal is to find a mutual benefit.
If you are having trouble reaching a consensus, try bringing in another person to help you negotiate. This will provide a new perspective to the negotiations and make them less emotionally charged.
Another option is to bring up a minor detail that needs to be settled, such as the delivery time or price. This will give the opposing party a deadline to meet, which may motivate them to close the deal faster. If they are still hesitant, you can ask them what the holdup is and if there is anything that would change their mind about working with you. If the answer is no, you should respect their wishes and move on.
3. Create a Mutual Benefit
In order to close a deal, you need to provide the opposing party with a clear sense of benefit. To do so, you can use a variety of tactics, including incorporating humor. Humor can make the negotiating process more collaborative and encourage both parties to come up with creative solutions that can help both sides reach a happy agreement.
Sales negotiation is a complex and challenging task. To avoid wasting time and energy, it is important to prepare for each conversation by identifying your own and your prospect’s interests. These include both tangible interests, such as price and deadlines, as well as intangible ones, such as building a long-term relationship or saving face in the event of an error.
One of the most effective ways to prepare is through a Mutual Action Plan (MAP). Opportunities with a MAP are 13% more likely to close, according to data from Outreach. To create a MAP, start by asking the buyer what they want from the transaction. Then, work backward to what your company can offer in return.
4. Restate Your Offer
When you’ve spent tens or even hundreds of hours preparing for a closing discussion, it can feel devastating when a prospect backs out. But you can prevent a deal from falling through by employing the right negotiation tactics. These tips from Young Entrepreneur Council members can help you successfully close a deal without any major hiccups.
Closing conversations can be nerve-wracking because there’s always a chance the prospect will go with a competitor, postpone their decision until next quarter or ask for prices you can’t deliver on. That’s why it’s important to make a point of reiterating your offer at the end of each conversation.
This can help you avoid feeling pushy or self-serving, which isn’t the best impression to give prospects. It’s also a good way to create an air of urgency so that the prospect knows they can’t wait forever to make their decision. Then, they’ll be more likely to accept your final offer.