Negotiation is a skill, and practice keeps it sharp. How do you stay in shape, and train new employees in the art?
Of course, you’re good at negotiation – after all, that’s pretty much the job description. But just as with any other skill, honing your negotiation technique is vital to staying in top shape.
That’s especially important because the business is changing so rapidly, and usually to the customer’s advantage. People are going online to find pricing and features long before they come into your store. Along with that, “no-haggle” all-in pricing is now part of the industry. If your store doesn’t feature it, some of your competitors do.
And in addition to accurate knowledge, your customers may also be finding information online that isn’t correct, but they’re trying to use it as part of the process. So how do you keep everyone sharp, and how do you train your new employees on how to negotiate the best possible deal? Here are some suggestions.
Treat your customer as your equal. Confidence is essential, but overconfidence can ultimately work against you. You are undoubtedly the better negotiator – this is what you do, after all – but others have to feel they’re being respected and their needs are considered. This can be especially important with salespeople who are new to the business, and who may go a bit overboard as they try to prove themselves when closing deals. The person on the other side of the desk is the customer, not the opponent.
Listen and get to know the customer. When others are talking, we often have a tendency to think about what we’re going to say next, rather than actually listening to everything that person is saying. You’re trying to find out what your customers need and want, what they can afford, what they can live without if it’s necessary to stay on budget, and their comfort level for risk, which can determine what plans, financing, and insurance coverage will work best for them. Your customers will feel more comfortable with you, and you’ll have a better idea of what to offer them and how to sell them on it.
Know when to be quiet. New salespeople are often afraid of “dead air.” They’ve made their presentation and then, when the customer says nothing, they continue to talk. Teach them to recognize that point where the customer is now mulling it over and needs that silence to concentrate on a decision.
Keep up-to-date on what people are reading online. The Internet is filled with sites that gain clicks by warning people how to “protect” themselves, and dealerships are a common target. They’ll tell people you will lie to them, bait-and-switch them, overextend them…the list goes on. If you suspect your customer believes it, bring it up first. “I’m going to show you a few items you might consider. I’m not trying to get you to overspend; this is about choosing what’s going to work best for you.”
Don’t throw out too much at your customer. When there are multiple options for products, the magic number is three. More than that, and people get overwhelmed; while only one or two can make customers feel hemmed in and unable to negotiate what they want. Even if none are exactly right, your customer will likely look at the one that’s closest – and from there, you can tweak it to everyone’s satisfaction. The important thing is that they have chosen one, and now the negotiations can move forward.
Look at the long game. Individual sales are important, but loyal customers are even more vital. They come back, and they send their friends and family. Don’t be so focused on maximizing a sale that you jeopardize your future ones.
Avoid questions that can be answered with “no.” Every question should move things forward, not provide an opportunity for the customer to bring it to a stop. Ask for input that leaves the negotiation decision to customers, who in turn will feel like they’ve also had an equal hand in the bargaining process and got what they wanted. “We need to substitute one of these two items to reach that price – are you going to switch this one or that?”
Practice makes perfect. Even experienced salespeople need to take an honest look at their skills and see where they can be tightened up. Some like to practice in front of a mirror to see how they look to customers. If you have new products to sell, run through scenarios, looking for the best way to present them. This is also a good way to train a new person, playing the part of the customer and hitting them with questions you know will be asked. It may even be beneficial to consider professional negotiation training, either one-or-one or group sessions. The time and money spent may be more than worth it in the long run.