Filling the Funnel: Negotiating the Close

Part Six of Seven on the Complex Sales Process
by Tracy A. Corley

Over the past year, we've been exploring the seven phases of the sales funnel. In this issue, we focus on the close. Salespeople often focus on getting buyer to say Yes to the proposal that is put in front of them. And much too often, they hear "no" instead. Asking for the close isn't like "making a kill" -- It is much more than an unconditional acceptance of terms. For both you and the buyer, everything is negotiable. If you're getting hesitation or hearing "no", asking for the close will most often require some level of negotiation. How can you ensure a mutual win-win for both you and your client the next time you ask for the close?

1. Understand the buyer's motivation. If you've been doing your job in the assessment phase of the sales process, you'll know what's most important to your client. Understanding the buyer's motivation will help you realize what they're willing to concede and what rocks in the pile terms and requests are unmovable. If you have any doubts or questions about what's motivating your buyer, return to assessing their needs and revise your proposal accordingly.
2. Be aware of your company's limits. Before you connect with the buyer, have a clear understanding of the baseline pricing and terms you're aiming for. Check in with your legal department or adviser to understand what parameters of your terms of service cannot be changed. When you're equipped with the foundations of what both you and your client are looking for, you can proceed to the next recommendation.
3. Be creative in your negotiations. Since everything is negotiable, feel free to create unique parameters for working together. This is especially critical if you and the buyer aren't agreeing on a deal-breaking point. If you can approach each negotiation as a conversation in which both parties leave the table happy, each will be more willing to collaborate and develop creative solutions that meet all of your operational, logistical, financial, and legal constraints.
4. Be prepared to walk away. Don't give away the bank. Often, salespeople make concessions just to close the business. If an agreement doesn't meet your baseline objectives, be prepared to walk away from the negotiations and the deal. It's better to keep your company in the black than to make unrealistic concessions to bring on a resource-draining client.
5. Be clear on the next steps. Your client is ready to buy. Once they've said yes, make it easy for them to move forward. Do they need to sign any forms or remit a purchase order? Have the forms ready to review together, and contact their purchasing department to find out what you need to prepare for their team. Make it easy to make and keep the close.

When a buyer says "No" to your proposal, what they usually mean is "not under these terms at this time." Be prepared to negotiate. If you understand the buyers motivation, are aware of your own limits, get creative in your solutions, are prepared to walk away, and clearly communicate on the next steps, you should have no trouble crafting a contract that works wonderfully for all.