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Chapter 13
NEGOTIATING BUYER CONCERNS
EXTENDED PRESENTATION OUTLINE
1. “Handling” buyer strategy by using the “we versus they” personal selling strategy
means someone loses.
2. Today’s strategy is a “win–win” strategy where seller and buyer work out the best
3. Integrative negotiations are built on joint problem solving, trust, and rapport to
achieve win-win situations.
4. Trust and rapport must be established on the front end of the sale and maintained
throughout the sales process.
5. High-performance salespeople take time to discover the customer’s needs and try to
recommend the best possible solution.
6. Negotiation is working to reach an agreement that’s mutually satisfactory to both
buyer and seller.
a. Involves resolving the problems or concerns that prevent people from buying.
1. Negotiations seek to move polarized parties into the realm of common interests.
2. Can take place before the sales call or at any time during the sales presentation.
3. Can anticipate that the most important negotiations will take place during stage three
of the buying process (see Figure 8.3).
4. Establishing a strategic alliance (Chapter 1 as the highest form of partnering, requires
lengthy negotiations
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5. Once alliance is finalized, negotiations continue when concerns voiced by one party
1. To negotiate with effectively, salespeople first need to engage in detailed planning.
2. One of the most common mistakes negotiators commit is not doing their homework
in advance
3. Steps in the planning for negotiations:
a. Gather information before the negotiation.
1) Best Alternative to Negotiated Agreement (BATNA), defined as “what
alternative(s) will be acceptable to you if your negotiation does not succeed.”
2) Second important planning tool is Zone of Possible Agreement (ZOPA),
defined as the space between the seller’s walk–away point and the buyer’s
1) In one-on-one negotiations, adaptive-selling styles are useful: The Platinum
1) Helps to predict and classify possible resistance with the aid of a negotiations
worksheet.
2) A negotiations worksheet, shown in Figure 13.3., helps identify the most
1. Understand the problem.
2. Create alternative solutions that can add value.
3. Periodically review acknowledged points of agreement.
4. Do not make concessions too quickly.
5. Timing and the Pareto law.
6. Know when to walk away.
1. Initial response may be, “I do not need your product.”
a. May be a conditioned response to any sales representative or a cover-up for the
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B. Concerns about the product or services
1. Consultative-process buyers may lack needs awareness or need help evaluating
possible solutions.
2. The product (solution) often becomes the focal point of buyer resistance.
3. When the product itself is the focal point of buyer concern, the salesperson must try
to discover specific reasons why the prospect has doubts.
4. Factors that may influence the buyer’s attitude:
a. Product or service is not well established.
1) Common buyer concern if you are selling a new or relatively new product.
2) Use laboratory test results, third-party testimonials from satisfied users, or an
1) In the prospect’s mind, the advantages may not outweigh the disadvantages,
so buyer resistance surfaces.
2) You must build a greater amount of desire in the prospect’s mind.
3) Concentrate on a value proposition that gives product or service a major
1. Concerns related to source can be especially challenging when the prospect is a
strategic alliance buyer.
2. When dealing with the loyalty problem, it is usually best to avoid direct criticism of
the competing firm.
3. Avoid direct criticism of competing firm when responding.
a. Work harder to identify problems your company can solve.
1. Resistance related to time is often referred to as the stall.
2. Stall indicates that the prospect has both positive and negative feelings about your
product.
3. Consider using probing questions to determine the negative feelings.
4. All right to be persuasive if the prospect can truly benefit from buying now.
5. Present information sincerely and accurately. Never distort the truth in the hope of
1. Price objections are one of the biggest obstacles salespeople have to conquer.
2. Two important points to keep in mind concerning price resistance:
a. It is one of the most common buyer concerns in the field of selling. Must learn to
3. Customers who perceive added value are less likely to choose a competing product
simply on the basis of price.
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III. Specific Methods of Negotiating Buyer Concerns
A. Direct denial involves refuting the opinion or belief of a prospect.
1. Considered a high-risk method of handling buyer resistance. Use it with care.
2. If the buyer resistance is not valid, there may be no other option than to refute it by
providing accurate information.
3. High-performance salespeople counter inaccurate responses from the prospect
promptly and directly.
4. Example: if the quality of the product is questioned, meet the statement head-on with
whatever proof seems appropriate.
5. Manner in which you state the denial is of major importance.
a. Use a win-win approach.
1. Sometimes a prospect’s objection is completely valid, or at least accurate to a large
degree.
2. Best approach is to acknowledge that the prospect is at least partially correct.
3. Avoid the “yes…but” response.
4. When you use the word “but,” it invalidates anything preceding it.
C. Feel-felt-found
1. Successful salespeople are sensitive to clues that indicate the client feels something is
wrong.
2. One way to empathize with the client’s concerns is to use the “feel–felt–found”
1. Need-satisfaction questions are designed to move the sales process forward toward
commitment and action.
2. Convert the problem into a question.
3. Questions are designed to get the customer’s attention focused on the solution.
E. Superior benefit
1. Sometimes the customer raises a problem that cannot be answered with a denial.
2. Acknowledge the valid objection and then discuss one or more superior benefits:
3. A superior benefit – a benefit that may outweigh the customer’s specific concern.
F. Demonstration
1. If familiar with your product as well as that of your competition, this method of
negotiating buyer resistance is easy to use.
2. One of the most convincing ways to overcome buyer concerns and specific
objections.
3. Sometimes a second demonstration is needed to overcome buyer resistance.
G. Trial offer
1. A trial offer – lets prospect try product without obligation to buy.
2. Popular with customers because they can get fully acquainted with a product without
making a commitment.
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H. Third-party testimony
1. Studies indicate that the favorable testimony of a neutral third party can be an
effective method of responding to buyer resistance.
2. Third-party testimony provides a positive way to solve certain types of buying
problems.
3. The positive experience of a neutral third party will rarely trigger an argument with
1. Today’s customers are well informed and may want to engage in negotiations early in
the sales process.
2. If the customer raises concerns that you would prefer to respond to later in the
1. Consultative selling is characterized by flexibility.
2. A combination of methods sometimes proves to be the best way to deal with buyer
resistance.
3. A salesperson might attempt to turn the objection into a trial close by concluding the
4. See Figure 13.3 for more examples of combination methods.
1. Salespeople that rely on price only to capture and retain business, reduce whatever
they’re selling to a commodity.
2. Once sale is reduced to price, there is no customer loyalty
B. How to deal with price concerns.
1. Do clarify price concerns with questions.
2. Do add value with a cluster of satisfactions.
a. Customers seek a cluster of satisfactions that include a good product, a
salesperson who is truly a partner, and a company that stands behind products (see
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3. Don’t make price the focal point of your sales presentation.
a. May need to discuss price, but do not bring it up too early.
4. Don’t apologize for the price.
a. Mention price in a confident and straightforward manner.
5. Do point out the relationship between price and quality.
6. Do explain and demonstrate the difference between price and cost.
a. Price represents the initial amount the buyer pays for the product.
1. Some marketers position products with a price strategy.
2. Many of these companies have empowered salespeople to use various low-price
strategies.
3. Some salespeople are given permission to match the price of any competitor.
4. Many transactional buyers are primarily interested in price and convenience during
1. Enrollees learn how to negotiate with salespeople.
2. Some salespeople also are returning to the classroom to learn negotiation skills.
3. Learning how to negotiate is one of the linchpins of effective selling.
4. Professional buyers often learn to use specific tactics in dealing with salespeople.
B. Specific negotiating tactics:
1. Budget limitation tactic
a. Best approach is to take the budget limitation seriously and use appropriate
2. Take-it or leave-it tactic
a. Price concession is one option.