Closing b2b sales for research and development

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what's going on everybody so in this video we're going to be talking about how to close more deals using some of the most powerful negotiation tips i've learned over my sales career now if you're excited for this video make sure to give it a like subscribe and turn on notifications for more videos like this and let's go ahead and dive in okay so we are going to be covering a master class in negotiations i'm going to give you some of the best tips and strategies to negotiate from the very beginning all the way to closing the deal typically when you're going for the close there's going to be parts where you're negotiating and you're trying to get the best deal the customer is trying to get the best deal and somehow you guys have to both come to agreement and somehow meet in the middle right but actually you're not really meeting in the middle because the strategies i'm going to show you today you're actually going to be in a very advantageous position while making the other person feel like you guys are meeting in middle and i'll explain to you exactly what that means first step when it comes to negotiations is that anchoring is very important so it's all about pricing right now if you are selling a product and service a lot of times the customer is going to say like you know what's your price before you even want to get to that you always want to ask what your budget right because based on the person's budget you can price ingly and in b2b sales where all the prices are made up anyways you are typically trying to charge higher so that your company and yourself earn more commissions that's typically how it goes right you're not going to give you know everyone the best discount right off the bat let's say if you're willing to sell a product for ten thousand dollars and the customer says yeah my budget is fifteen thousand dollars well you can just say hey you know we actually charge fifteen thousand dollars and it fits your budget and then you make five thousand more dollars so that's why it's important to ask for the budget first to see if they will give it up now in other cases the customer is a little more savvy when it comes to dealing with b2b sales people and they're like nah we're not going to give you your budget and if you don't give us your price then it's okay we're going to go with another provider so in those situations after you ask for the budget they don't want to give it the next step is to give them a price that is anchored typically higher every industry is a little different sometimes you want to increase your price by 30 50 200 i mean i've dealt with people where i'm buying a service and they literally doubled their price and then i negotiated them down like 50 because i knew the price they gave me was a fair but it was a way for them to anchor me high right and that's just how it goes let's say you're okay with getting ten thousand dollars to sell your product or service and you might say like yeah so our services are typically fifteen thousand dollars for what you're looking for how does that sound to you and the person's gonna be like that's a little higher than i thought you know is there a reason for why it's that price and you say yeah you know that's typically what we start out with um and that's what most of our customers go with right and then they'll typically say like okay is there any chance i can get a discount so here's where the negotiation happens the customer is like that price is too high i'm a little uncomfortable with it but they want some kind of discount and so what you do is that you do give them these discounts because you're already in your head you know you're willing to accept ten thousand you charge them fifteen thousand so you're you can go five thousand lower if you really wanted to right but here's a catch every time you lower your price you should ask for something in return so let's say you want the customer to close on a certain date you're like okay you know let me talk it over with my boss and get back to you on what we can do to lower the price and then you talk to your boss right and then you go back to the customer and you're like okay talk to my boss and he said that we can lower the price to 13 000 if you sign by this day if you sign after this day it has to go back to 15 because it's only good if you do that thing and the customer is going to think like okay well i'm going to save 2 000 if i just sign this thing i was going to do it anyway so i'm just going to sign out that day so you win because you closed the deal you secured it there's no iffy washy things there you rule out the competition and the person just gets the deal done and sometimes that's worth that discount other cases the customer might be like okay that sounds good to me but i want 12 000 you know i don't want to pay 13 000 i want to pay 12 000 and you're like okay well do you mind if i go ahead and talk about it with my manager to see what else we can do and they're gonna be like sure if you can get me the discount so you go back to your manager and you say that okay well he'll sign it but he wants more so what do we do and then you'll be like all right well what if we get him to sign a yearly contract and instead of monthly we go yearly and we'll give him a thousand dollars off so you go back to the person and you're like okay talk to my manager we can do 12 000 under two conditions number one you sign it on this day number two you have to sign a yearly contract and you don't do it month by month how does that sound to you if the person know they're gonna use your services anyways for the year they might be like well i save a thousand dollars so i'm gonna do it it's the same as they've used spotify right you can pay monthly which is a certain price or you could pay yearly and you would save you know x amount of dollars and you're like well i use spotify every day anyway so i might as well just pay yearly and save like 20 or whatever it is same exact psychology right and so every time you negotiate every time somebody tries to lower your price ask for something in return to make the deal go faster get better terms maybe potentially make more money in the long term by securing them longer term there's always ways to spend it depending what your product and service is but that's how it goes right you could also say like hey we'll give you a discount on that if you buy this extra thing too and we'll also give you a discount on the thing number two so there's different ways to spin it but just remember always ask for something for return if the customer is asking for a discount let's reverse it a little bit let's say that you are buying a product and service and you want the best price well typically the best way to do it especially if you're buying something that's a commodity like services that many people can do car for example i literally did this just the other month purchasing some business services for my company and so basically i was paying for this service which cost quite a bit of money right it's quite a bit of money basically what i did was i went to one person one agency and i said hey you know i'm trying to do this thing and we're looking for agency to handle this side of the business can you guys do it they're like absolutely and i said okay give me a quote so they gave me a quote let's just arbitrary let's just call it twenty thousand dollars right so they gave me twenty thousand dollars and then i'm like okay so it costs twenty thousand dollars to do this thing cool let me get back to you so i go to another agency basically go through the same conversation and be like this is what i'm trying to do you know what's the price they'll be like oh you know we are charging fifteen thousand dollars right and this is arbitrary and then i'm like okay cool so i go to another agency like a third one and i'm like hey what's your price and they'll be like oh this is 25 000 i'm like hmm that's kind of weird uh this other agency downstream they're turning 15 and you're turning 25 what's the difference and then they're gonna be like it's literally the same thing so let's just lower a price to match them and then they'll match that 15 right you know basically every agency i go to at that point they're gonna keep matching the 15 because they want the business for commodity service then i go back to the person who offered me 15 and i said hey you know i talked to these other guys they're really reputable you know they basically do the exact same thing you do but i really like you guys is there anything you can do on price is it possible to lower it and then we can secure the deal they're to be like all the other people basically do the same thing we do but we really like patrick and we could just secure the deal so let's just secure the video and like lower our price a little bit more right and so that is pretty much how i lowered my price in terms of like getting business services and that's also how you figure out what is the market price right because like if you go to enough agencies there's always gonna be one that's trying to be cheaper and they're gonna go low right and even sometimes you can even get them even lower but then if you like another agency that's more reputable well you can just say take the price from the first agency and go to the reputable one and be like yo this guy's charging this doing the same thing you're doing obviously you have a brand but can you lower your price and a lot of times they would just lower the price because they want to work with you and they want the business and if they think you're a long-term customer meaning they do this first job and it's good and then they can do more jobs with you in the future then they will probably lower their price and that's pretty much one of the easiest strategies that you can apply anywhere but this typically only works for commodity products and services that you can get from another person right so if it's like web development agency well there's a million shops that do the same thing so that's something you can like go to every shop and like get them to bid against each other but if somebody sells something like very unique and only they can do it the strategy doesn't work because you can't go to the shop down the street because they don't do the same thing but that's typically what i would do also in the reverse stand you can keep asking for discounts but then give up something in return right so like i could say like hey you know your thing costs fifteen thousand dollars but i want to pay you know thirteen thousand dollars is it possible to lower the get a discount they might say um i don't think so and you say okay well what if i signed the contract by this day does that lower the price i don't know patrick uh let me talk it over my boss and maybe the lower the price and then maybe you'll say oh you know actually how about we lower even more but what i'll do for you is i will sign it on this day guarantee i will do a yearly contract so instead of paying one by month i'm gonna pay for the whole year up front basically you give up stuff right so like the reverse scenario that we talked about in the beginning but what happens is that by giving up these things that are technically free for you you're lowering the price so you signing one week earlier or one month earlier doesn't cost you any money but it saves you like a few thousand dollars in that hypothetical situation right so think about like all the things that you can give for free to negotiate and give it to the seller to lower your price because that works really well and a lot of times when a business or sales person really wants that deal to close by the end of the month they are willing to give you that discount for you to secure the deal so that they can hit their quota so it's human psychology really but yeah that's some big tips when it comes to negotiating so in negotiations there are also situations where things might get a little heated where you might have a certain perspective on what the price should be and the customer has a certain perspective and it's just not really gelling right and they're not like communicating that well they're not like trying to cooperate and it's like very hard on both sides so a tip i have for you there is that you want to use your tonality to build rapport with that potential customer client or whatever basically make them at ease you can disagree with somebody but you can do it respectfully so let's say in a situation i'm selling something i want 20k they want 10k and we're not budging right so as a salesperson i would say hey you know i totally understand that you guys want 10k obviously you guys are a small business you're figuring it out and you're not really sure if like this is going to be a worthwhile investment i totally get what you're saying now with 10k respectfully like i feel it's a little too low for what we're looking for especially because when it comes to you know how much it costs to actually provide these services we would actually barely be making any money and it wouldn't even make business sense to be working with each other here so from there what i would do is i would try to reverse the situation or understand what are the levers that i need to pull to get this person to buy so let's say that they're just not confident if it's gonna work and it's a lot of money for them to invest right so i'd be like hey it seems like this is gonna be like a lot of your budget when it comes to like making this work i totally understand that and if it doesn't work i understand that you also take a lot of business risk is there anything i can do to like do you risk it for you guys so that you guys feel more confident in this and maybe we can work out the financials to reflect that as well and then now you're opening up the conversation right and they might say okay well what do you have in mind and we could say something like hey how about this because you want to test it out before you really know if you it works how about we do like payment plans where you pay you know x amount of percent upfront and then when we do xyz you pay the next payment and then when we do the you know abc we do the next one you pay us the next one right and so this way if it doesn't work then your risk is actually a lot lower because you only pay that first amount and then if we do the good work on the first thing probably do good work on the second thing right and then you're more confident in that so you know we can keep the price as it is because as long as we do a good job you're gonna make more money in the end than you pay us so how about we just break it into pieces based on certain benchmarks or milestones and then that way we de-risk it for you we're still getting paid we know that you're going to pay because you have some stake in the game and then we just work from there how's that sound and they're gonna probably say yes right and so it really depends on what is holding them back from moving forward or what is you know keeping them from not lowering their price but there's always a way to do it and you don't always have to lower your price to win a negotiation sometimes you just have to give up something for free to make the person feel more confident in purchasing your product and service and that's pretty much it with that said those are gonna be some of my best tips when it comes to negotiating i hope it really helps you guys out in the field and i will see you guys in the next one