As a franchise owner, you need to know how to close sales or you won’t be in business for long. The best marketing campaigns, the most competitive prices, and the most desirable products and services can bring people to your virtual or brick-and-mortar door, but it’s often up to you and your employees to close the sale.
That’s where negotiating skills play a significant role in the success of your franchise. You and your employees need to practice negotiating with customers to close the deal.
Don’t make the mistake of thinking that negotiating is only necessary in big ticket item sales. Sometimes even small sales could depend on customers’ perceptions that they’ve “won” and gotten the best deal possible.
With that in mind, here are five negotiating tips that you can use to boost franchise sales starting today!
1. Define Your Goal.
We often talk about defining goals related to business and marketing strategy, but every negotiation with a customer should have a goal, too. What do you want to get out of the conversation? What do you want to get out of the sale if you can close it? Before you start negotiating, you should have a specific goal in mind and work toward achieving it.
2. Set Your Limits.
Determine the least you’re willing to accept when the negotiation is over. For example, you might have a lowest price point that you can extend to the customer in order to still make a profit. Know what your limits are before you start customer negotiations.
3. Identify Your Extras.
What extras or add-ons can you offer to the customer in order to make the sale? These extras often add just enough to make the price match the value the customer perceives that he or she will receive for the money. Have some extras in mind so you can provide additional incentives to the customer if they buy today. If you don’t need to offer the incentives, you can always offer them as upsell items to increase the transaction.
4. Ask Questions.
During any negotiation, you need to ask questions that require more than a yes or no answer to better understand the customer. Without this information, you won’t necessarily know what they really want from you, your products, or your services. This is an area that takes practice, so do some role playing with your employees, friends, or family to improve your ability to extract customers’ real needs and problems.
5. Identify Customers’ Priorities.
Listen very carefully to your customers during your conversations with them. Practice reading between the lines and understand that what they’re not saying could matter more than what they are saying. Use these insights to determine what’s most important to each customer so you can focus on what matters most to them at that moment. Once you can rank their priorities, it’s much easier to offer the information and “deal” that will motivate them to buy.
Remember, negotiating is about giving and taking. It should help you save sales and close incrementally more sales so you generate higher revenue overall. Follow the five tips above, and you should see positive results for your franchise.