#028: Don't fall for this negotiation trap

Read time: 2 minutes

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In today’s newsletter, I’m going to share the one statement that got me a 40% discount on flooring for my kitchen. And how you can avoid this trap as a sales rep!

As a customer, to use this statement effectively you have to do a few key things and I will list these out for you.

• Set the scene/situation

• Set the objective

• Set the rules

If you fail to do any of these, the premise falls apart and the impact is lost.

A sales process typically follows a similar structure. There is an intro call, a technical evaluation, a budget assessment, and then a negotiation on price.

This can vary by the product or service but you get the idea.

The killer statement is used in the negotiation phase of the sales process.

I believe this is so powerful of a statement that I used it myself to get a 40% discount on flooring for my kitchen!

The Story

Let me set the scene.

I had an initial call with a flooring company and I really wanted to use them but I didn’t want to spend nearly as much as they were quoting.

So I called them back and said,

“I have spoken to a few showrooms and you all have very similar products, so this is just down to price. I would like you to give me your best price in a quote. I will be asking the same of the other showrooms and I will take the first and best offer and not come back to discuss it with anyone, any further’.

Now they may believe you or not, however, they now have all the risk.

So how does the message break down into its parts?

• Set the scene/situation: I have spoken to a few showrooms and you all have very similar products, so this is just down to price. (commoditized the vendor)

• Set the objective: I would like you to give me your best price in a quote

• Set the rules: I will be asking the same of the other showrooms and I will take the first and best offer and not come back to discuss it with anyone, any further’.

They got back to me later that day with a 40% discount.

The truth is, I didn’t even talk to any other showrooms.

The Lesson

What’s the lesson and how do you prevent this from happening to you as a rep?

For the customer, this dance is won in the negotiation. For the rep, it’s won in the discovery call.

You have to avoid being put in the commodity bucket, at all costs!

• Fully understand the client's objectives and challenges

• Show them how you are uniquely differentiated

• Add value to them, beyond the table stakes

If you do this, this statement, “I have spoken to a few showrooms and you all have very similar products, so this is just down to a price”. Does not work.

You would have validated that the customer cares deeply about your unique differentiated capabilities and the value derived from them.

So if they pull this trick, you can easily remind them why they wanted those capabilities and you’re the only company that can provide them.

And believe it or not, this is better for the customer. If you truly are the better provider that helps get them to their goals, you need to make sure they are aware of that.

Now you can avoid this as a rep and save money on your next big purchase!

P.S. We just launched a discovery call guide for Succession members. It guides you through pre-call prep, during call notes, and a review of how the call went.

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Episode 10: [Sales] Leverage data and tools to improve your sales success with Hannah Roddy

• Takeaways

  • Overcoming the stigma of sales

  • Leveraging data and tools to help you sell

  • Building your network

  • Multiple IPO and acquisition stories

Harrison has recently joined the membership committee with SAMPS. It’s a free community of sales and marketing professionals of the sciences. They run in-person events and put on regular webinars packed with great content.

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