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Step 1
You wouldn't be talking to him
unless you had some need. Let's say you need a computer to run a small business. His first
job is to fully understand what tasks you need the computer for. He'll ask questions
to establish he's on the right track. He'll build a rapport. He's got to show you
he's a nice guy.
Step 2
His next job is to sell the
benefits, to tell you how much faster you can do what you are doing now, how you can
improve your productivity and save time/money if you use a computer. He recognises that
you are not excited about RAM and hard disks. You are only interested in
RAM and hard disks for what they can ultimately do to improve your efficiency and save you
time. So it's not the product he's selling - it's what the product can do.
Step 3
But you can get the product
from a number of different places. Why buy from him? Once he knows what you need the
product for and knows exactly what product you need he has to prove that it makes sense to
buy it from him. He'll talk about satisfied customers, high quality, trouble free service.
He'll talk about what makes his product different from the rest. He has to make a
compelling case for you to want to buy the product from him.
Step 4
Raising Objections - getting
you to disclose your reservations/doubts: Unless he knows what they are he cannot allay
your fears. There are several tricks to extract this information from you. Here's a
conversation that was almost ended but the salesman turns it around. Note how he extracts
the objection. Notice how he doesn't accept the first reason at face value.
John: Thank you for all your
help and the information you've given me on your company's widgets. I'll think about it.
Salesman: It's been a pleasure. Before you go sir, can I ask what you think of the
product?
John: I think it's a good quality product
Salesman: But...?
John: Erm, but I think that it's a serious decision and I should talk to my partner
Salesman: Of course. But what's the real reason?
John: Well (pause) ... it is a bit expensive.
Bingo! "But what's the
real reason?" is a question that always works. Whatever the original response, if
there's another reason lurking in the background, it will be exposed. Once he knows what
the real obstacle is the salesman moves in to clear it away. The best way of
changing someone's opinion to yours is to begin by agreeing with theirs.
The customer likes the
products. The customer needs the product but the problem is cost. This is where the
salesman tells John how payment can be spread over 24 easy installments.
Step 5
People have a tendency to
avoid decisions. So salesmen make it easy. They avoid giving you "yes or no"
alternatives. They'd rather not ask you: So do you want to buy it now? Instead
they'll use the more positive: Do you want to take it now or have it delivered?
They'll steer you ever so helpfully.
After John knows about
spreading the payment...let's close the sale.

Negotiating
Negotiation is a process by
which parties seek to resolve a conflict of interests. Both sides are attempting to sell
their ideas to one another. They have to yield some points to gain some others.
Knowing what's negotiable
Timing your call
Getting the right person
How to structure a persuasive
argument
Six steps to successful negotiation
Knowing what's negotiable
You need to identify what your opponent has to offer. Does he have some
surplus stuff, stuff that just won't sell? Or maybe he has goods that are not currently
being advertised, software that has been superseded by a newer version or stock that he
has picked up cheap (like calculators, organisers, cameras etc) from an auction or
bankruptcy sale.
How do you identify this?
Tip: Call and speak to one salesman - ask questions that will
give you an idea of what bargaining points will be useful. You are now pre-armed. Call
later and speak to a different salesman who thinks it's your first call. You've got an
advantage.
But what do you have to
offer in negotiation for a computer? There are several things in fact. We have
some suggestions. But you will have to do a bit of ground work to know which of these are
going to be useable against your salesman.
Closing the sale now rather
than later (all salesmen want a sale now rather than later)
Paying by cash (credit cards
tend to cost firms a percentage)
Paying by card (some firms
prefer a debit card to cash)
Taking out finance/buying on
credit (firms tend to make a lot more profit on this)
Taking their optional
extended warranty (they usually make a tidy packet on this)
Having it delivered rather
than picking it up in person (some firms make a small extra profit on delivery)
Picking it up in person now
rather than having it delivered (do they have a space problem and want the goods removed
ASAP?)
Being able to set it up
yourself (Save their engineers' time)
Not minding a small external
defect like a scratch
Willing to accept an
incomplete system (Do they have a system with a missing mouse or keyboard?)
Willing to wait a week or
two for your computer...or longer
Willing to forego technical
or on-site support (some firms buy on-site warranty cards from third parties. You not
taking a card saves them about £20-£30)
Not needing all the items
advertised with the computer under negotiation (like printer, scanner, software bundles
etc)
Not needing all the
facilities offered by the firm (like guaranteed next day delivery, free on-site warranty
etc)
Not needing the latest
version of the software they have advertised with the computer (Do you really need
Microsoft Office 97? Won't Office 95 be sufficient?)
Settling for a computer they
already have on their shelves rather than having one built specially for you.
These are just a few examples. Stay alert.
Listen carefully for clues when talking with the firm. Ask questions. You'll probably find
a lot more. Note them down.
Timing your call
When a sales office is busy they are less inclined to
be patient with time consuming calls. Fridays are not the best days and they are
planning their weekends. Late in the afternoon is not a good time, they just want to go
home. Also, people are generally less co-operative before lunch.
The ideal time to
make your calls or to visit the store is when it isn't too busy and preferably early on a
Tuesday or Wednesday morning or just after lunch.
Getting the right person
Obviously the new boy at the sales office won't be in a position to negotiate
anything. Try and speak to the supervisor, or the manager. Try and identify who'd know
about surplus stock, stock they want to clear. Find out who you'd need to talk to about
it. It may not necessarily be someone from the sales office. Whoever it is find out what
stock they just can't wait to get rid of. Be polite. Sound like you want to help them.
Call back if the right person is not free.
Structuring
persuasive arguments
©Philip Schofield, Sunday
Telegraph, 21/03/99. "The gentle & subtle art of twisting arms"
Ask questions - identify the
other person's needs
Describe your proposition -
show how it will meet that need
Support your claims - offer
evidence which is relevant to the other person's interests
Welcome objections - they
are a sign of interest
Allow interruptions - the
other person will not listen till they've had their say
Never argue - you can win
the argument but lose the sale
Ask for a decision - offer
positive alternatives
Six steps
to successful negotiation
©Philip Schofield, Sunday
Telegraph, 21/03/99. "The gentle & subtle art of twisting arms"
Prepare - define your objectives, decide
which are negotiable, gather information and know your opponent
Discuss issues - listen, exchange
information, establish priorities, seek and give information, avoid argument
Listen for signals - they are signs of
movement, be willing to reciprocate
Make a conditional proposal - address your
opponent's interests, incorporate concessions that have been signalled
Bargain - exchange concessions: if you do
this, the we will do that
Secure agreement and close firmly
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