Commercial Ink - Consumer Sales Negotiation

Consumer Sales Negotiation

The urge to slash prices on products when the economy is down can sometimes be overwhelming. The mindset is usually, "if we reduce prices, we will increase traffic and increase sales," but this is not necessarily the right approach. Not only is pressure placed on salespeople to continue decreasing prices, but once they make a sale, the downward spiral continues, causing them to offer the lower price to all customers. Although lower prices may increase sales, it will not be beneficial to your bottom line. The first step to correcting this is to alter the thinking of the salesperson.

Above all else, the salesperson needs to believe in their ability to close a sale. It is important that they listen to the customer and are able to meet their customer's needs. It is crucial that they spend more time relaying the benefits the customer will receive instead of simply the features of the product or service. If the customer believes that the product will be beneficial to their daily lives or solve a struggle, they will be willing to pay the premium. It is important for a consumer to recognize the immediate return on investment they will receive when purchasing the product. If a customer believes that they will instantly begin to retain benefits from the purchase, it will be easier to close the sale.

In addition to understanding how to "sell" the product, it is vital that a sales representative be familiar with how to respond when the customer asks for a price cut or simply makes a statement about the magnitude of the price. Usually this stems from the customers need to ask because they feel obligated or like the are "supposed to." At this time, the topic of conversation should be brought back to the initial needs and reasons why the consumer wanted the product in the first place. If you force the customer focus on their need they will be less likely to worry about the price. If this tactic fails to produce a sale, it is important to remember that it is acceptable to walk away. It is fundamental for the sales associate to believe that they do not need every sale. It is fundamental for the sales associate to believe that they do not need every sale. If the salesperson does not believe they are getting through to the potential customer, their time would be better spent pursuing another lead. It also reiterates the quality of the product by reinforcing the belief that the merchandise is worthy of the dollars exchanged for it.

Although it may be difficult, maintaining price in a down economy is possible and essential to receiving higher profit margins. If salespeople focus on asking the right questions, staying confident, and conveying the significance of ROI, an increase in sales is achievable - even in this economy.

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