You have been in tense negotiations for hours and it looks like you have finally reached an agreement. While you may feel like the worst is over, it’s not quite time to breathe that sigh of relief just yet. That’s because closing the deal is undoubtedly the hardest part of the entire negotiation process. Even the best negotiators make closing mistakes that end up costing them the deal. While reaching the LOI stage is a great indicator of success, the reality is the process is far from over. There are still a number of steps that need to be taken in order to seal the deal and you need to be aware of potential pitfalls that could get in the way. Here are a few negotiation tactics to avoid while trying to close a deal.
Rushing the Process
We have all dealt with that pushy salesperson that won’t let up. Even if the process seems like it’s going smoothly and your prospect is about to agree to the deal, pushing too hard at the end is a lethal mistake that could kill the potential sale. No one wants to feel pressured into making a decision and they certainly don’t want to be rushed. Be patient enough to let things progress on their own and avoid rushing the process.
Twisting Their Arm
You have been on the receiving end of a salesperson that says something like, “Normally this would cost $1000 but if you buy today I can drop the price to $750.” Attempting to strong arm the customer is a terrible mistake because it leaves them wondering two things: 1) why are you in such a rush to close this deal and 2) If you are willing to drop the price that much is it really worth it in the first place? This is not a good tactic for closing deals because it calls into question your credibility.
Waiting Too Long to Close
Sure, you don’t want to rush the process but you also run a risk of losing the sale if you wait too long. There’s a natural point in the conversation when it’s time to conclude the pitch and ask for the business. If you keep talking about other things, you could easily raise issues that didn’t exist before. Likewise, if you give the customer too much time to decide, they may end up changing their mind.
Selling After the Close
If a customer has agreed to a deal, it’s a mistake to keep talking about your product or service. Trying to sell additional features might make them question the quality of what they are ready to purchase. Furthermore, it can come across as pushy and aggressive. Your best bet is to keep your mouth shut and take the order.
Making Promises You Can’t Keep
Closing one deal should not be your ultimate goal. What will bring you more business and leads in the future is what you do after the close. If you made a bunch of promises to a customer just to lure them in and then failed to make good on those promises, you will ruin your reputation and your chances of getting future business from that customer. It’s always better to be honest and only offer what you can truly provide.