11 Powerful Negotiation Techniques to Close More Deals

Are you dealing with a lot of price objections? Are you tired of getting beaten up on price?

If you are, you’re not alone. The easiest way to lose deals is to give in and offer a discount when asked. Not only does it hurt your business, but it also hurts the entire industry by driving down prices.

Instead of giving in, you need to be prepared to negotiate. You need to understand the difference between a negotiation and a price objection, and you need to be able to build value and create urgency to close the deal.

I’ve put together 11 negotiation techniques that will help you close more deals while keeping your prices and margins intact.

1. Don’t negotiate

It’s a counterintuitive approach, but sometimes the best negotiation technique is not to negotiate at all.

If you have a strong relationship with the prospect, they may be willing to pay your asking price without even trying to negotiate.

This is why it’s so important to build rapport and trust with your prospects. If they like and trust you, they’re much more likely to take your word and accept your offer.

Of course, this is not always the case. But if you have a good relationship with the prospect, it can be a powerful negotiation technique.

2. Set the stage for a “yes”

The first time you ask for a decision, make sure it’s a question that can be answered with a “yes.”

For example, “Would you like to move forward with this plan?” is a yes-or-no question that can be answered with a “yes.”

If you ask a question that can be answered with a “no,” you’re opening the door for the other party to say “no” and walk away. For example, “Do you have any questions?” is a yes-or-no question that can be answered with a “no.”

If you’re worried about getting a “no” to your question, ask a question that can be answered with a “yes” first. Then, once you get a “yes,” you can ask additional questions that can be answered with a “no.”

3. Use silence to your advantage

Silence can be one of the most powerful negotiation tactics. It can be very tempting to fill the silence with words, but don’t. Instead, wait for the other party to speak.

Silence can be used to your advantage in a number of ways. For example, if you are making an offer and the other party is taking a long time to respond, it could mean they are considering it. If you speak first, you could end up talking yourself out of a deal.

4. Ask open-ended questions

As much as you want to get your point across in a negotiation, listening is equally important. You need to understand what the other party wants and what’s motivating their decisions.

To do that, ask open-ended questions that encourage them to talk more than you. This will give you a better understanding of where they’re coming from and what they’re looking to achieve.

It can also help you identify potential problems or objections early in the negotiation process. The more you know about the other party, the better you can position your arguments and make a strong case for your offer.

5. Understand your buyer’s hot buttons

In sales, a hot button is a problem, pain point, or need that is urgent and important to a prospect. It’s what motivates them to take action now, rather than later. Hot buttons can be anything from a need for a specific product feature to a desire to get a better price.

The key to successful negotiation is to understand your buyer’s hot buttons and use them to your advantage. If you know what’s motivating your buyer, you can tailor your negotiation strategy to address their needs and close the deal on your terms.

One way to uncover a buyer’s hot buttons is to ask open-ended questions that get them talking about their needs and challenges. You can also use active listening techniques to pick up on clues in the conversation that indicate what’s important to the buyer.

6. Emphasize the other party’s loss – not your gain

This is a crucial aspect of any negotiation. You should always emphasize what the other party will lose if they don’t agree to your terms.

This is a powerful psychological principle. People are often more motivated by fear of loss than by the prospect of gain.

For example, if you’re negotiating a deal with a potential customer, you could emphasize what they would lose if they didn’t sign up for your product or service. This could be lost revenue, wasted time, or missed opportunities.

In a negotiation, you also want to focus on the other party’s loss. What do they have to lose if they don’t close the deal? If you’re a salesperson, then you’re probably already familiar with this tactic.

When you’re selling a product or service, you need to be able to articulate the problem you’re solving for your customer. In a negotiation, you need to be able to articulate the problem you’re solving for the other party.

What do they stand to lose if they don’t close the deal? What are they missing out on? What will they have to give up if they don’t get what they want? Focusing on the other party’s loss can help you make a stronger case and get what you want out of the negotiation.

7. Let the other party feel like they won

Everyone wants to feel like they came out on top in a deal. When you’re negotiating, it’s important to remember that you’re not the only one who wants to feel like they won.

In fact, if you want to close a deal, you need to make sure the other party feels like they won, too.

The best way to do this is to focus on the other party’s goals and priorities, and to look for ways to structure the deal so that it’s a win for them, as well as for you. This is where asking lots of questions and active listening really come into play.

8. Use deadlines to your advantage

Deadlines are powerful motivators. They create a sense of urgency and force people to make decisions.

When you’re negotiating a deal, you can use deadlines to your advantage. If you have a deadline, make sure the other party knows about it. This will give them an incentive to act quickly and can help you close the deal faster.

If you don’t have a deadline, you can create one. You could say, for example, that you need to close the deal by the end of the month in order to meet your sales quota. This can help you create a sense of urgency and motivate the other party to make a decision.

Just be careful not to use deadlines as a bluff. If the other party finds out that you don’t actually have a deadline, it can hurt your credibility and make it harder to close the deal.

9. Have a walk-away price

Another key to successful negotiations is to know when to walk away. If you’re not willing to walk away from a deal, you’re not really negotiating.

To help you determine when it’s time to walk away, you need to have a clear understanding of your walk-away price. This is the maximum price you’re willing to pay or the minimum price you’re willing to accept.

The key to determining your walk-away price is to do competitor research. Find out what similar products or services are selling for and what the market will bear.

Once you know your walk-away price, stick to it. Don’t let the other party try to pressure you into accepting a deal that’s not in your best interest.

10. Be willing to say no

Negotiation isn’t just about getting the best possible outcome. It’s also about knowing when to walk away.

If you’re not willing to say no, you have no leverage in the negotiation. The person who’s willing to walk away has the most power in a negotiation.

If you’re not prepared to say no, you’re not negotiating. You’re just hoping to get what you want. And that’s not a good strategy.

Be ready to walk away from the deal if it’s not in your best interest. That will give you the leverage you need to get what you want.

11. Practice

Like anything else, practice makes perfect. This is especially true when it comes to negotiation. The more you do it, the better you’ll get, and the more comfortable you’ll be putting these techniques to use.

If you’re new to sales, or if you’re looking to improve your negotiation skills, consider doing some role-playing exercises with your sales manager or a more experienced colleague.

You can also try negotiating with friends or family members in low-stakes situations to get a feel for how it works. The more you practice, the better you’ll get.

The best way to improve your negotiation skills and close more deals is to practice. You can practice your negotiation skills with a friend, family member, or colleague.

You can also practice by role-playing with a sales coach or mentor, or by taking a negotiation course. The more you practice, the more confident you’ll become, and the better you’ll get.

If you’re not a naturally gifted negotiator, don’t worry. It’s a skill like any other, and it can be learned.

The best way to improve your negotiation skills is to practice. You can practice in a low-stakes environment, like negotiating with a friend over where to eat dinner or what movie to watch. You can also practice by doing role-playing exercises with a colleague.

You can even practice by negotiating with yourself. For example, if you’re trying to decide whether to buy a new car, you can make two lists of pros and cons, one for buying the car and one for not buying it. Then, try to negotiate with yourself to see if you can come up with a better deal.

The more you practice, the more comfortable you’ll become with the negotiation process, and the better you’ll get at it.

Conclusion

Negotiation is an art, and it’s a big part of the sales process. With the right strategy and mindset, you can close more deals and increase your revenue.