Have you ever rented an apartment or condo? If so, did you try to negotiate the rent? If you did, you were in the minority because property management surveys report that only 10% of renters ask for a price break.
On the other hand, think about the last time you bought a new car. Did you willingly pay sticker price? Not! You negotiated and argued endlessly to get the lowest possible price, and probably played multiple dealers against one another, to insure you didn’t pay one dollar more than necessary.
The point is, why does everybody beat on car salesmen for a better deal but virtually no one attempts to do the same thing to their landlord? Is the car salesman just a punching bag that everybody has decided to target? No, the bottom line is that car dealers have trained the buying public to act this way, but property management folks haven’t.
The two scenarios just discussed are really weird when you compare how differently people react to both of them. This brings me to two felonies of selling that I’d like to explore today; exaggerating and caving.
Exaggerating occurs when sellers somehow communicate to prospects that they believe their own prices are too high. It begins with the simple, seemingly innocent introductions you give when it comes time to quote pricing; such as:
“Are you sitting down?”
“Better buckle your seatbelt before I lay this one on you.”
Regardless which words you use, you just sent a clear signal that you personally believe your price is too high. When the prospect believes you believe your price is too high they start beating on you like a drum.
Remember what the car dealer said:
“No legitimate offer refused.”
“We will beat any competitors’ price and will not be undersold.”
Nonsense like this just screams for you to come in and go to war over the price of this new car. When you actually go to the dealership the car salesman gets beat down…again.
All salespeople have committed this felony at one time or another, but it’s a habit that must be broken if you want to survive and have a chance at becoming a top performer in your business.
Because of the expert training provided to customers by the auto industry and others, you must be prepared for premature questions about price. These questions are being sent your way to determine if you believe you’re going to get the price you’re quoting. It’s a credibility check, and if you fail this pop quiz…you’re exaggerating. They will know if you think your price is fair, or if you’re just too scared to talk about it.
Caving is the other felony and it is committed when you reveal that you’re willing to negotiate on price as intense buying pressure is applied. Once the buyer smells blood in the water you are trapped into negotiating price. Prospects know you’ve caved when you say things like:
“Let me sharpen my pencil and see what I can do.”
“We’ll work out something that you can live with.”
“Let me ask the boss how much wiggle-room he has on this.”
Caving was never a part of your sales training. It is a coping technique you came up with on your own. Anytime you utter phrases like these you are openly admitting, “I always negotiate price; go ahead and try me and see how low I’ll go.”
If you are going to telegraph an expectation to buyers that you’ll get your price, the first thing you have to do is stop inserting adverbs and adjectives in front of the word, price. Anytime buyers hear these words it’s like a flashing sign advertising that you will always cave. For example:
“Our normal price is…”
“The published price is…”
“The regular rate is…”
Besides pressing you for a discount, these extra words make prospects feel they should also check with your competitors to see where they stand.
So when it comes to quoting a price there is only one right way: “The price is $…,” period. You must sound like you’ve always sold it for that price and you intend to make this sale for that price…THE END!
Regardless, buyers will most likely still ask for a discount, but this doesn’t mean you’ve done anything wrong. Exaggerating or caving will just make the situation worse.
I understand every company offers discounts to reward certain groups of buyers, but if yours doesn’t qualify you must hold your ground. Don’t be like the 75% who think they have to cut the price to get folks to buy. A 15-30% commission increase awaits you if you will just stop committing these two felonies.
————————–HAPPY NEW YEAR————————
As you swap your old calendar for a new 2016 version, let me recommend two new habits to ensure your sales performance continues to improve: Subscribe to this weekly newsletter and have it sent to your email inbox every week, and then read it and apply it. Order your copy of Sell is NOT a Four Letter Word using this link and then read and apply 2 of the coaching segments from the book each week during 2016. Enjoy your commission increase!
©2015 Robinson Training Solutions, LLC