5 Sales Negotiation Tactics to Reduce Pricing Pressure

sales negotiation tactics and strategies to reduce pricing pressure

Sales Negotiation Tactics Can Feel Unpredictable
While sales negotiations often feel unpredictable and challenging (especially for big and complex deals), our research over 3 years in 19 countries, across a range of industries, found 97% of the verbal sales negotiation tactics used globally followed a very, very predictable pattern that could be reduced to just two main propositions.

  • Alternative – The buyer’s alternative to you (most often your nearest competitor)
  • Price – Or offering something else for free or discounted

The Best Way to Negotiate
The best sales negotiation tactics to fight the competition and align with your buyer is to find ways to clearly differentiate your offering in the eyes of your customers in a way that addresses their most pressing issues and needs. Otherwise you will most likely find yourself in a situation where you are considered a commodity and in a price war where the lowest bidder typically wins. Remember what you learned in consultative selling training…value trumps price.

Proven Negotiation Tactics
Here are 5 field-tested sales negotiation tactics to set your offering apart from the rest:

#1.  Know your target clients. Define and agree upon who would benefit most from your solutions in terms of industry, geography, buying triggers, pain or gain, title and role.  Customers who “fit” better than others consistently produce higher revenue, greater profits, and more consistent client satisfaction scores.

This is a direct consequence of shorter sales cycles, less problems, more rewarding relationships, better results, and more referrals.  If you do not know how to identify your target clients, download The 4 Steps to Identify Your Target Clients to accelerate Growth.

#2.  Be creative and forward-thinking. Go beyond the solution selling basics to show your customers that you are looking ahead at emerging problems in their industry and how your offerings can give them a competitive edge both now and in the future.  To do this, your sales force must be able to consistently understand what matters most to your clients, their company and their industry and strive to go above and beyond what your clients expect at every turn.

To stay ahead of your clients, subscribe to trade journals, engage in related forums and discussion groups, network at conferences and local events, keep track of the competition and above all else, ask your customers.

#3.  Use what you have learned. Evaluate why you have won and lost deals in the past and use that knowledge to better differentiate yourself more strategically.  Be as specific, simple, and clear as possible about what sets you apart from your competition. Companies typically differentiate themselves in the areas of “better, faster, or cheaper.”

How do you set yourself apart in a way that matters to your target buyers?

#4.  Consider the audience. Tailor your points of differentiation to the specific group you are addressing. Sales folks will have a different perspective than customer service or the CEO. Know what matters most to them and behave accordingly.

#5.  Highlight cultural compatibility. When all else is similar, deals can be won by emphasizing how your company culture is symbiotic with your customer’s. What you value, they value. This can make the difference when competition is stiff.

To learn more about improving your sales negotiation skills, download The 2 Most Common Sales Negotiation Strategies to Prepare For

Comments are closed.

LSA provided top notch solutions right when and how we needed them. They exceeded my expectations from a speed, quality, and cost standpoint. I recommend them to anyone looking for a true business partner in the Learning and Development arena. The breadth and depth of their expertise has helped us hit tight deadlines across multiple projects.

Fortune 500 Financial Services Company
Director of Infrastructure & Technology

I consistently look to LSA Global when I need custom programs put together for my client groups. I can always count on LSA to do a thorough needs analysis and to put together spectacular programs that are well received. Their management development and performance management expertise and professionalism make them one of my top-rated learning and development partners.

Stephanie Webb
HR Program Manager

Rambus

LSA has become the gold standard in team building and management training at Genomic Health! I have a hard time finding facilitators that come close to their level of customization, expertise and experience.

Emily Couey
Director of Human Resources

LSA is an instrumental training outsourcing partner in helping us to build management capacity and strategically invest in our people. Their flexibility, depth, and breadth of expertise allows us to deliver top quality solutions that are directly tied to key business plans. Their ability to custom design, deliver, and evaluate our Management Curriculum has been excellent. They are true business partners and a pleasure to work with.

Margaret M. Mader
Vice President, Human Resources

Hyperion

Congratulations on your pro-activity in establishing this program and developing such an effective New Employee Orientation course.

Farhat Ali
President and Chief Executive Office

Fujitsu

LSA’s consultant designed and delivered a half-day team building solution for our recent conference. It included careful customization to integrate the design with our new mission and values. Everyone had fun and identified key issues with our teamwork. Altogether a great program!

Bob Ward
Director of HR

PalmSource has found our relationship with LSA extremely beneficial. We worked closely with LSA to customize the right Management Training Program solution to meet our unique business needs. LSA is a quality organization, one that I’d recommend to any company looking for a first class training and consulting partner.

Ken Boehm
Vice President of Human Resources

We contacted LSA to help us with customized management development. LSA worked with me to identify a solution that would meet our exact needs. We decided to start at the top and ran the program for our executive team. It was such a great success that we hope to roll it out companywide. We look forward to a long-term partnership with LSA Global and their team of experts.

Barry L. Byrd, SPHR
Human Resources Manager

I have worked with other training companies and found it to be more of a seller/buyer relationship than one of matching the right expertise to our business issues. That’s what LSA does – ask the hard questions, listen, and understand our business needs. We receive the benefit of their expertise from assistance with personal development plans to enhancing team performance, to looking at enterprise-wide challenges. It’s all about helping our business succeed as we grow. Right now, LSA is providing great ideas, a fresh approach, and valuable guidance as we develop our management team and accelerate our client relationship management results.

Kristin Westland-Kaune
Director, Team Development

In the Next Generation Management Development courses, I was trained with skills and tools that have made me and my team more productive, motivated, and successful at communicating with other departments.

 

Kevin Ashman
Firmware Engineering Supervisor

SeaTel has found our partnership with LSA Global to be very valuable and beneficial. We turned to LSA to customize a supervisory/leadership solution to meet our needs. LSA delivered a customized top quality solution. I’d recommend LSA Global to any company looking for a best-in-class training and consulting partner.

Kortney Riddle
HR Manager

Understanding and conforming to legal compliance was very important to our company. We turned to LSA Global to provide a quality and cost effective way to ensure that we were AB 1825 compliant. Their interactive eLearning program was top-notch. It allowed our managers to learn at their own pace, and on their own time. The program was tailored to include our logo and our internal harassment policies. It was interactive and met all federal and state legal requirements. I would highly recommend LSA Global to any company looking for an efficient and effective and top quality way to train their managers to be in compliance.

Kelly Warren, SPHR
Director, HR & Compliance

On behalf of Roche and my staff I would like to sincerely thank you for your help with this. The English as a Second Language (ESL) assessment and coaching that you provided for our team was a great success.

Cam Greig
Associate Director

Roche

I highly recommend LSA Global to anyone who is looking to improve individual or organizational effectiveness through their top quality programs and broad range of expertise.

Greg Pappas
VP of Human Resources

I had been working with LSA for many years with my prior company. Currently, I’m with a company who hadn’t done much basic management skills training. After identifying and presenting a program recently, our managers are excited and talking in the halls about the great experience. LSA saves us time in delivering the right training for our needs.

Phyllis Moracco
HR Director

Evaluate your Performance

Toolkits

Toolkits

Download key published insights and tools from industry experts highlighting best practices in the areas of talent, strategy and culture.

More

Health Checks

Health Checks

Want to know how you stack up against leading organizations?  Receive a complimentary benchmarking analysis courtesy of an LSA Expert.

More

Whitepapers

Whitepapers

Get up to speed on timely solutions critical to your business. Published by LSA Experts based upon client feedback and key industry trends.

More

Methodology

Methodologies

First we identify the key metrics you want to improve. Then we assemble a dedicated team of elite experts who have successfully solved similar problems with similar clients.

More

Blogs

Stay up to do date with the latest information on how we help high growth companies align their culture and talent with strategy.

More

Case Studies

Client Case Studies

Real world consulting and training approaches from LSA projects, providing insights on how your company can outperform the competition.

More