For most salespeople, the thought of having to negotiate a deal with a customer is a rough spot to be in.  Reason is simple: Most salespeople know that negotiating means they more than likely will end up offering the customer a reduction in price.  

Question we have to ask ourselves is, “Why should we allow price to drive the negotiating process?”  Salespeople allow it because that is what they think the customer is expecting.  On the contrary. What the customer is looking for is more value, and unless you, the salesperson, delivers more value, then the customer has no other option than to negotiate a lower price.

Keep price out of the negotiating process by focusing the entire sales process on the outcomes the customer desires. The more the sales process is focused on what the customer wants, the less opportunity there is for the discussion to turn to price. 

Giving you even more leverage is how the price is positioned.  If the price is presented as if it is something to be negotiated, then it will be.  On the other hand, if price is presented as an absolute, with zero flexibility, then the chances of price being the focus of negotiations is diminished.  

Remember, cash is king. Price point is everything. If it came down to absolute survival to get the deal, I would be much more willing to offer something additional than cut the price.  At least this way I am still able to capture the full amount of revenue.  The goal, however, is to not allow it to come to that point where you have to offer more.

In place of offering more, you should first adjust the mix.  Ask yourself what is something you could remove from the offering that customer doesn’t see full value in and what can you replace it with?   This allows you to shift the mix, and in the eyes of the customer, allows them to receive more.  All the while, you are not altering your overall profitability.

Implementing this strategy requires you to present your product/service in a manner that, if necessary, you can remove some sections and replace others.   I’m not a fan of presenting customers an option of items to pick from when deciding what to buy.  I believe very strongly in presenting to the customer a total package with one price associated with it.

If the customer is one who has to own the buying process, then offer them two packages at different price points.  One package being very high priced and the other being the package you feel they should go with.  By using this strategy, you gain the ability to provide to the customer the ability to feel like they are negotiating, because they have a choice to make.   Yes, they may have a choice, but it does not include building their own offering by picking a little from each one.  This strategy is key.  You didn’t present it as a menu from which to select randomly, but rather you presented it as full offers.

 However you choose to present your price to the customer, it must be done with confidence.  Once you start making concessions on price, you will never gain back control. 

In summary, your objective is to first focus the entire sales process on the customer’s needs or desired outcomes.  Present your package as just that – a package with a firm price.  If necessary, present a couple of packages, but always with a firm price.

If in the end you can’t win, you then re-bundle your offering, but still holding the price firm and as a non-negotiable.  In the end, cash is king and nothing you do should allow the price on the table to be anything less than what you first present.

Mark Hunter, “The Sales Hunter,” is author of High-Profit Selling: Win the Sale Without Compromising on Price. He is a sales expert who speaks to thousands each year on how to increase their sales profitability. He was named one of the Top 50 Influencers in Sales by Top Sales World.  To receive a free weekly sales tip and read his Sales Motivation Blog, visit www.TheSalesHunter.com. You can also follow him on Twitter, on Facebook and on Linkedin

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