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sales techniques

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Sales Tips: How to Respond to “Best and Final” Pricing Requests

By John Holland, Chief Content Officer, CustomerCentric Selling®

How should sellers reply when they are not going to win a transaction but are asked for a “best and final” number? Some respond with the lowest possible price with the thought being they may be able to steal the business (unlikely) or at least make it a skinny deal for their competitors. It’s not a tactic I endorse.

I believe floating aggressive prices can come back to haunt sellers if and when the roles may be reversed in the future. It would be awkward if a seller’s customers got wind of pricing that was lower than what they paid.

best and final pricing

My suggestion when asked for best and final pricing is to ask:

“Am I the vendor of choice and is price the last remaining obstacle?”

  • If the person asking is not a decision maker, indicate that he/she, the decision maker, your manager and you would have to meet to see if the transaction could be completed.
  • If the person asking for better pricing says you are not yet the vendor of choice you can respond:

“It sounds as though you have more work to do in finalizing your decision. If I become the vendor of choice at that time we can all meet to see if we can come to terms. For now, let’s leave pricing as an open item.” 

Some positive things happen by taking this approach:

  • You avoid putting low ball numbers on the street
  • The “buyer” hasn’t gotten what he or she wants
  • It makes sense for both parties not to negotiate unless you are Column A

Always and never don’t usually apply to sales, but my suggestion is to always act as though you are Column A when asked for better pricing. If you are, buyers will come back to you. If you’re not, you keep your dignity by not getting dragged into a discounting death spiral.

Sales Tips: Setting the Pace with Buyers

By John Holland, Chief Content Officer, CustomerCentric Selling®

It seems that salespeople are always trying to speed up sales cycles. Part of it I suspect is due to the monthly, quarterly or annual pressures salespeople and their managers deal with on an ongoing basis. My general experience is that:

  • Opportunities that are likely to close move at a fairly brisk pace.
  • Those that plod along seem to slowly lead to buyers making no decision.

setting pace with buyers

Start with a SOE

After gaining access to buying committees for large transactions, we suggest negotiating a written sequence of events (SOE) that defines the steps that need to be taken to make a written understanding of buyer needs and the recommendation and pricing to address them.

If buyers agree to the SOE, there are three (3) things that sellers should do:

  1. Ask if this is the right time to commit the efforts and resources needed to evaluate the offering being considered. If, for example there is a pending acquisition, key position that isn’t staffed, reorganization, etc., it will be difficult to proceed with the evaluation and sellers may be better served to resume when the timing is better.
  1. Ask the buying committee their timeframe as to when they would like to receive a written proposal. This allows sellers to align with buyers and remove the temptation to focus on a seller’s agenda (i.e. quarter or year-end) to recognize revenue.
  1. A potential accelerator can be created if value can be established with as many Key Player goals as possible. If these buyers can quantify improvement from baselines (where they are without the offering being considered) the committee may recognize there is a cost of delay.

After potential benefits have been recognized, buyers are incented NOT to drag their feet in doing evaluations.

Save the Infographic below for easy reference:

INFOGRAPHIC_How to Set the Pace with Buyers