To learn how to negotiate and close a deal, I interviewed Clinton Swaine, founder of Frontier Trainings. Here are a few notes from the conversation. (You can download the conversation to listen to the full interview.)
Clinton Swaine, Frontier Trainings
Clinton Swaine founded Frontier Trainings, a business school that uses hands-on business games and simulations to teach techniques and skills to entrepreneurs, business owners and investors.
A few lessons from this program
I’m shocked! – The first thing that should come out of your mouth when someone quotes you a price is, “Wow! That’s expensive.” The goal is to make them feel insecure about the price they quoted you and get them to start lowering it.
Best? – Ask, “What’s the absolutely best price that you can give me?” Let them negotiating against themselves.
Negotiable? – If you’re the one who’s quoting a price and someone asks you “is the price negotiable?” Don’t let them start chiseling you down. End negotiations before they start by saying, “Yes, the price can always go UP.” Make them think that negotiating your price will only open them up to paying more.
Terms – Most people only care about the price, and underestimate the terms. Once you’ve gotten the best price you can get, move to the terms and negotiate an even more favorable deal. Think about how car dealers will get you to commit to a price, then they’ll try to get you to agree to pay higher interest rates or accept a lower trade-in value.
Tips for closing a sale:
Puppies – Ever notice how infomercials will tell you to try their products at home and return them if you’re not happy. It’s called the “puppy dog” close because it’s like telling someone to take a puppy home and return it if they want. Few people can return something they take home because they grow attached. Suggest that your prospect live with your product for a while and return it if they’re not happy.
Double bind – Ask questions that lead to a purchase no matter what the client answers. For example: “Would you like to pay for this with cash or credit?”
Isolate objections – When you identify an objection, ask “If we resolve this issue, do we have a deal?” Then focus on resolving just that issue. You need to be clear about what you’re negotiating.
These are just a few of my notes from the interview. Listen to the full interview to learn more. If you download the interview, pay attention to how Clinton worked out a deal with a leader in the personal development industry. Great story.