Making your business more profitable looks at setting up various strategies, identifying and measuring various profit drivers, and negotiating with clients/customers – all that without increasing any costs. Negotiation to get what you are worth or to drive revenue is a tricky business. You need to set some strategies in place and prioritize them according to their importance. In the process, you need to look at increasing sales revenue and decreasing your costs, while bench-marking your business to see where you can save money. Select strategies and write down your goals associated with each of them, and plan how to implement them well.
Here are ten effective negotiation strategies to improve revenue by 20%:
Meet your customer the halfway
You should ensure to know and understand what the other party is really looking for. Keep the conversation on the issues and don’t get side-tracked by the other party. Give the person opportunity and resources for better understanding and allow them to meet you halfway in the negotiation.
Find alternative solutions:
If in case the negotiation does not seem to go your way, seek to find alternative solutions to retain their interest in you. Use sturdy voice to bring them back to the table and keep them engaged. Recognize how the other party reads those solutions as successful in regards to the negotiation. A negotiation always requires a plan B. So, be prepared.
Keep confidence in your products/services offering while negotiating or offering a solution. Your confidence allows the other party to see you in a better light.
Use time to your advantage:
Understand the deadlines and negotiate accordingly. For immediate or urgent assignments or deliverables, you can simply negotiate an additional price/rate offering a direct increase in revenue. This comes as an immediate increase in revenues by simply enhancing your negotiation skills. Never make it obvious that you might be facing any time constraints – utilize your resources to the optimum to ensure timely delivery.
Ask for high rates:
While selling your services, you should negotiate with highest possible rates for them – while justifying why you are asking for the same. In case of making a purchase – ask for the lowest justifiable price to save you money.
Increase your price point:
Survey reports suggest a minimum and maximum price points for each product. Find out whether you have priced your goods and services correctly. If not, increase your prices without reducing sales. Offer price discounts and promotions to increase your customer base for the longer run. Offer them with absolute best terms to make them come back for more.
Let the other party think and up their offer. Use silence after your pitch as the resource to let them meet you on your terms. Get the other party to reveal their position first, which you can use to make a better offer.
Do paperwork after negotiation:
Put everything in a written proposal after you have completed the final negotiation. Half-baked written proposals sometimes go wrong in the negotiator’s direction. Once written, terms are considered as final, and it is highly difficult to change them.
Train your staff:
Teach them sales and negotiation skills on how to upsell products. This increases the number of purchases and enhances the productivity of your staff. The main strategy of increasing revenue is skilled staff, who know what they are doing. Recognize and reward staff contributions to increase their confidence in you and get better performances. Improve your customer service and Hire Java developers a staff training program for better yield.
Develop new product lines:
Survey the market about newer products and expand your product line. Create a need for your old and new products with better marketing ideas and newer markets. Expanding into new territories can help grow your business.
In conclusion, find out your products or services with the highest gross profit margin and create higher sales targets for them. Train your people with negotiation skills to achieve those targets and reap the benefits.