Value based negotiations

Hey -- loaded question that I'm sure could go a bunch of different directions. Often time we deal with buyers who either refuse/aren't use to qualifying value of the software they are looking at.

This obviously is a killer for us.

Is this a situations where reps NEED to make sure they are tying features to value during the sales process or are their tactical things that can be deployed when at the negation table to bring the buyer back to the value they get from the product?

☁️ Software Tech

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CoorsKing

WR Officer

Retired King of the Coors Knights

You always need to tie to value. You don’t necessarily need them to qualify, you can do that. In your discovery ask questions like “how long does this take you…” “what happens to revenue if you miss this…” things like that. You can then do some simple math using industry averages to build more qualitative metrics proving your ROI. If your solution is going to cost $100k, you better be solving a $1M problem.

If you are not able to directly tie your offering to positive and negative impacts to their business, your chance of a sale is smaller than my nuts when I take an ice bath.

It is REALLY hard to prove value in the negotiation phase if you haven’t already done so.

hh456

Celebrated Contributor

sales

if they aren't qualifying the value, then they don't think that way. you'll never get them to do it. find hard targets for them to fuse in their brain to cross the bridge.

'Hey Steve, I know you aren't seeing the value but our software will allow your reps to (1) set on average, 14 new meetings per month and (2) increase win rates by 2 per month. That should equate to $500,000 in new business per month, which easily pays for this software and justifies it's value. Second, if you're cash strapped and looking to scale, this software fits that use case as well. You can hire eight new reps and have no budget left to force multiply through technology to hit your goals or you can hire four new reps, pair them with our software, and get production as if you hired 16 new reps."

Everyone thinks differently and it's our job to speak their language.

TheNegotiator

Arsonist

VP of Sales

You always have to convey value; goes without saying. But you quite frequently end up in a situation where the customer doesn’t SEE the value. . Read the challenger sale. It’s important to be beat it into them. . “So John, one of the promises I made to you before we booked this meeting was X. Before we go any further, I think, and the majority of my customers tend to be most excited about this feature X… am I right in assuming it’s not a huge motivator for you?” . Now they they have to babble on about why not. Interject to make them provide maximum detail on why they don’t believe in it, and push HAAAAARD on the why/why not arguments. This is where they break down and start believing more in what you think, than what they think. . “Ok, fair enough. I hear that. Well to be completely honest John, I’m convinced with can deliver on this promise. In fact, I actually won’t do business with you unless I’m sure I can, because the reality is you won’t like our product/working with us, if we don’t reach this outcome… the promise of this deliverable is to solve PROBLEM A + PROBLEM B, and ideally alleviate ISSUE C. Can we agree that would be a win for you guys?” . They have to say yes . “Ok, well then am I right in assuming you don’t believe we can deliver. I mean, let’s be honest if you could purchase a readymade solution to A+B+C, for this merger investment of XXXXX you would have already done it right?” . They have to say yes . “What do A+B+C cost you every year, combined?” . They answer . “By the way, I mentioned our clients Q and how we solved problem A for them right? It was practically an identical scenario to what you guys are experiencing. I think I also mentioned client R- now their situation wasn’t identical but it was quite similar. May I ask why you think this won’t work, when the product has been tested and proven repeatedly? I would never expect you to make a decision based on what’s worked for someone else, but why do you think it won’t work for you?” . By this point you typically have them by the balls, or it’s unlikely they’re going to change their thinking and follow your logic anyway.

CuriousFox

WR Officer

🦊

Sell on your value by using their pain. They have pain even if they don't admit it at first. You'll be amazed what you can find when you step up your research.

Do.it.for.the.checks

Politicker

Account Executive

I mean you could discount the hell out of it or ask the customer to name their price.

Deals will close, but I'd suggest hiring sales reps that can position value.

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Value based negotiations

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