Sales Negotiation Tactics to Reduce Pricing Pressure 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 to reduce pricing pressure used globally followed a very, very predictable pattern that could be reduced to just two main propositions.
The Best Way to Negotiate
The best sales negotiation tactics to reduce pricing pressure, to fight the competition and to 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 reduce pricing pressure and 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.
The Bottom Line
97% of the verbal sales negotiation tactics to reduce pricing pressure can be reduced to just two the buyer’s alternative to you and price. This should make your sales negotiation training, coaching and formula for success much easier to handle.
To learn more about improving your sales negotiation skills, download The 2 Most Common Sales Negotiation Strategies to Prepare For
How to Sell Value versus Price
7 Threats to a Positive Company Culture
LSA helped to meet the needs of my teams within a very narrow timeframe. My team walked away with highly useful management tools and practices. LSA saved us time in delivering the right solution for our specific needs.
Director, Software Engineering, EPG
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!
Director of HR
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
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.
Vice President of Human Resources
The LSA Global team was very receptive and flexible to our needs every step of the way. Their staff and facilitator demonstrated attention to detail, responsiveness, and professional courtesy. The participants were thrilled with the outcome and rated the communication skills workshop and the facilitator as ‘Excellent’. I’d highly recommend working with the LSA Global team to meet your professional development needs.
LSA custom designed a Management Development program that is absolutely “on target” for our technical managers. Their facilitator has done a superb job delivering the material in a way that is fast paced, highly interactive, and fun. She presents practical solutions to the people situations that our managers face every day. I regard LSA as an excellent partner that understands our business needs and a virtual member of our HR department.
Vice President Human Resources
Our company engaged LSA to do a specialized “train the trainer” program, and the consultant’s performance outdid our exceptionally high standards for such a program. Very crucial to the success of this program was the work done upfront to discuss our needs and to interview key members of our organization so that the program specifically met our goals. Our facilitators continue to comment on the success of the program. Thanks also for the follow-up.
Chief Financial Officer
We value our relationship with LSA Global. We came to LSA because we wanted to improve overall behavioral based interviewing capabilities of our managers to increase the probability of both hiring top talent and future leaders. LSA designed a highly customized solution for our business and culture. We are currently rolling out this solution to our leaders. I would highly recommend LSA Global as a top quality resource.
HR Project Manager - Training & Development, PHR
LSA has been a tremendous asset to my portfolio, both at my current company and my past company. As an HR leader, I am always looking for ways to find external resources that can provide a solution to our management training needs. LSA does that for me. Their solutions are presented in a much more leadership-oriented manner so as to be crisp, business relevant, and easy to apply right back on the job. I will continue to augment our programs using LSA solutions.
VP of Human Resources
We recently contacted LSA Global to assist us with a unique training request. We gave LSA a very short deadline and LSA custom designed a training program to meet our exact requirements within the limited time allotted to them. We found their facilitator to be well versed in the subject matter and very credible; the design provided practical and valuable information to our team of managers. I highly recommend LSA Global, particularly in the area of management training.
Julaine K. Souza
Senior Vice President
In my years working with LSA, it seems like I’ve had a personal consultant at my fingertips to help me identify just the right solution to satisfy our needs. The entire LSA team has become a trusted friend of Actel — assuring we provide state-of-the-art learning to meet our complex, high-tech business and people needs.
“We turned to LSA to help us custom design and deliver a leadership and management development curriculum to help drive performance. They have done an excellent job diagnosing the business situation, designing an approach that fits our culture, and delivering a first class solution.”
VP Human Resources
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’ve been associated with LSA for the last 8 years and have found them to be an extremely professional, well managed full service training organization. Since working with LSA, I’ve participated in a number of solutions ranging from Performance Management to Assertiveness Training – I’ve found that the quality of the resources is superior. They are well prepared and have definitely done a considerable amount of pre-work in order to customize our culture and business into the total learning experience – making it most beneficial for our employees.
Human Resource Manager
Download key published insights and tools from industry experts highlighting best practices in the areas of talent, strategy and culture.
Want to know how you stack up against leading organizations? Receive a complimentary benchmarking analysis courtesy of an LSA Expert.
Get up to speed on timely solutions critical to your business. Published by LSA Experts based upon client feedback and key industry trends.
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.
Stay up to do date with the latest information on how we help high growth companies align their culture and talent with strategy.
Real world consulting and training approaches from LSA projects, providing insights on how your company can outperform the competition.