Principles of Personal Selling 311
➤ Closing.Now the salesperson attempts to close the sale using one of several closing
techniques. The rep can ask for the order, recapitulate the points of agreement, offer
to help the buyer write up the order, ask whether the buyer wants A or B, get the
buyer to make minor choices such as the color or size, or indicate what the buyer will
lose if the order is not placed now. In addition, the rep might offer the buyer an
inducement to close, such as a special price, an extra quantity, or a token gift.
➤ Follow-up and maintenance.Follow-up and maintenance are necessary to ensure
customer satisfaction and repeat business. Immediately after closing, the salesperson
should cement any necessary details on delivery time, purchase terms, and other
matters that are important to the customer. The salesperson should schedule a follow-
up call when the initial order is received to check on proper installation, training, and
servicing. The purpose is to detect any problems, assure the buyer of the salesperson’s
interest, and reduce any cognitive dissonance that might have arisen. The salesperson
should also develop a maintenance and growth plan for the account.Negotiation
Salespeople involved in business-to-business deals, in particular, need negotiating
skills as they work with customers to reach agreement on price and other terms of sale
without making concessions that will hurt profitability. Although price is the most fre-
quently negotiated issue, other issues include contract completion time; quality of
goods and services; purchase volume; responsibility for financing, risk taking, promo-
tion, and title; and product safety.
To be effective in sales negotiation, reps must be well prepared and have plan-
ning skill, knowledge of subject matter being negotiated, the ability to think clearly
and rapidly under pressure and uncertainty, the ability to express thoughts verbally, lis-
tening skill, judgment and general intelligence, integrity, the ability to persuade oth-
ers, and patience.^29 These attributes come into play when it is appropriate to negotiate
with a customer or prospect—which is not in every situation.
When to Negotiate
According to Lee and Dobler, negotiation is an appropriate procedure for concluding
a sale when (1) many factors bear not only on price, but also on quality and service;
(2) business risks cannot be accurately predetermined; (3) a long period of time is
required to produce the product purchased; (4) production is interrupted often
because of numerous change orders.^30
There is an obvious advantage in knowing the other party’s reservation price and
in making one’s own reservation price seem higher (for a seller) or lower (for a buyer)
than it really is. The openness with which buyers and sellers reveal their reservation
prices depends upon the bargainers’ personalities, the negotiation circumstances, and
expectations about future relations.
Formulating a Negotiation Strategy
Successful salespeople prepare a strategic plan before meeting their buyers and making
tactical decisions during negotiation sessions. A negotiation strategyis a commitment
to an overall approach that has a good chance of achieving the negotiator’s objectives.
Some negotiators pursue a “hard” strategy, whereas others maintain that a “soft”
strategy yields more favorable results. Fisher and Ury propose a strategy of “principled
negotiation.” In this strategy, the parties (1) actively listen to each other’s viewpoint,
(2) focus on their interests rather than on their personal differences or positions,
(3) search for options that offer mutual gain, and (4) insist on objective criteria to
assess the solution.^31