In trade, I often see that when a salesperson is talking to a potential customer, the other person always says that the product is like, that is, the price is a bit high and the competition is lower than this. As a result, the clerk will be back discounted.
In order to be able to enter into transactions with customers, discounting is a common method used by salesmen because it is easier than introducing customers to their products. In fact, discounting customers is not a good thing.
Most salesmen know that in fact, they should guide customers to pay attention to the value of the product rather than the price. They should explain to the customer the uniqueness of their own products. In other words, the discussion should be deepened so that prices are no longer the focus of the problem. If the salesman wants to insist on the price that can make the company profitable, this is crucial, but it is really difficult to do.
Linda DeMars is a regional sales manager for Johnson Controls Inc., a company that controls automation systems. She said: "We found that the salesman felt that it was easier to lose money than to explain value to customers." The company designed a six-month training program to try to resolve the bargaining problem. “To reach the target, the average gross profit has a great challenge. We believe that the company has not yet reached the development speed it deserves, because we are still not good at shifting the focus of the negotiations from the price to the effect of the product on the customer's business performance.†Do, but Linda said: "As long as we talk hard, they will be back to their old ways.
Ironically, those salesmen who want to establish long-term relationships with their customers by discounts are likely to lose theirs and break them. Al Hahn, president of Hahn & Company, a US marketing consultancy, believes discounts will actually reduce customer loyalty. What's worse is that the salesman wants to establish a firm and long-term relationship by discounting. The customer's mind is clouded. It's strange why this company started to have such a high price, and now it can sell products according to this value.
Scott Cisel, director of sales at Central Illinois Light Co., said: "We let salesmen put aside old ways and don't wait for customers to think that their bids are too high.
In order to instill in the salesman a better way of dealing with the road, Central Illinois Lighting Company began intensive training two years ago. "We have been actively using tapes and workbooks to guide the entire process," said Siessel. "Every new contract or existing contract, we always insist on starting from the customer's business needs. Now there are some salespersons, although with potential customers. He has made one or two dealings, but he did not mention the price at all." He said that the relationship between the salesperson and the customer is stronger and more positive.
It sounds good, but when a customer asks for a discount, what should a salesperson do? It is often difficult to discern which customer really does not accept the offer, and which customer just wants to make the transaction more cost-effective and disguised. Hahn said: "When my colleagues are teaching procurement staff how to negotiate, there is such a trick, as long as the other party's quotations will tantrum, even if they think that the quote is already very low." Actually the salesman will often encounter In response, some salespersons automatically lower the price before the customer disputes the price, creating discounts without the need for discounts.
In order to avoid such traps, salesmen should learn some negotiation strategies.
We taught them some very traditional craftsmen, "said Sissel. "Some customers, no matter what plan you put forward, will hit you with 20 notes, and we start with this basic behavior. "Hahn believes that it is difficult for a salesperson to distinguish between his or her actual difficulties when negotiating, or whether he is dealing with him. Therefore, he suggests that information about the customer's affordability be collected as early as possible. Before making proposals to customers, the sooner you start, the greater your chances of influencing each other. Understand the customer's budget cycle and proactively provide useful information on his budget. When the customer plans for the next year and does not purchase in the near future, it is a good time for you to collect information and help customers understand the real situation.
A more basic way to help clerk stick to the price position is to let them fully understand the company's market position. Having a clear understanding of the company's characteristics will help them use the right attitude to promote the entire sales process. Thomas Fee, a sales training manager for software vendor Edwards (JD Edwards & Co.), said: "There are competitors who say that we must rely on prices to fight us, and we say that we must rely on value to fight you.