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Shane Decker: Prep for Krunch Time

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You’re ready for your final close, and he starts negotiating.

{loadposition shanedeckerheader}

Over the last two issues, I’ve shared two types of negotiation tactics that customers use — The Nibbler and The Bogey — and how to deal with them. The final tactic is called The Krunch, and it’s usually used by men. You’ve gone all the way through your presentation and the client says, “You’ve gotta do better than that.” (I call this “The Krunch” because it’s crunch time — you’ve told him the price, you’re ready to use your final close, and he throws out this negotiation statement.) 

The Krunch is a test. He’s testing to see if you’re willing to negotiate and how badly you want to sell your product. When he throws out The Krunch and you go down on price, you’ve lost integrity because it’s obvious that you didn’t believe in the quality of the item. Chances are the client will walk because you took too much off too fast.

Instead of dropping the price immediately, find out what he means by “do better.” Better on what? Better in relation to the price? The services you offer? The product itself? And if he says, “You gotta do a lot better,” find out what “a lot” means. “A lot” might mean something different to him.

This is an excellent time to sell company benefits through statements of service, fact and quality.  Service: “We’ve got two jewelers in the back who can size this while you wait.”  Fact: “We’ve been here since 1920, and our diamonds are personally selected.” Quality: “This is an ideal cut; its brilliance is unequaled.”

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This could also be a great time to T.O. to the manager or owner for his blessing. The owner comes out and asks the customer, “You’re looking at that? That’s one of my favorites. Your wife is going to love wearing that.” It’s a vote of confidence that means a lot coming from the owner.

If nothing else works, you can say, “Well, I want to accommodate you and I know you’ll love this piece, so what did you have in mind?” The price he gives is where you’re starting from. If it’s just a little bit, you can ask him how he’d like to take care of it. If it’s a lot, you at least have a starting point to go up from.

One tactic you can use in any negotiation is the Take-away. Let’s say you sell a brand name watch, which comes with a two-year warranty, and you offer an additional three-year warranty in the store. The customer hears the price and says, “You gotta do better than that.” You respond, “I can come down a little on the price, but you have to take away a little somewhere else.” So you suggest taking away the extra years. The client says, “No, I want the full warranty.” When you re-state your price, he’s more likely to accept it because the extra value has been justified in his mind.

Negotiating on price is an absolute last resort. However, there are some clients who just won’t buy unless you negotiate. Refusing to “cave in,” while at the same time helping the customer to feel he’s getting a great value, upholds your personal integrity, as well as that of your store and your product.

 


Shane Decker has provided sales training for more than 3,000 stores worldwide. Contact him at (317) 535-8676 or at ex-sell-ence.com.

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This story is from the March 2011 edition of INSTORE.

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SPONSORED VIDEO

Wilkerson Testimonials

If It’s Time to Consolidate, It’s Time to Call Wilkerson

When Tom Moses decided to close one of the two Moses Jewelers stores in western Pennsylvania, it was time to call in the experts. After reviewing two candidates, Moses, a co-owner of the 72 year-old business, decided to go with Wilkerson. The sale went better than expected. Concerned about running it during the pandemic, Moses says it might have helped the sale. “People wanted to get out, so there was pent-up demand,” he says. “Folks were not traveling so there was disposable income, and we don’t recall a single client commenting to us, feeling uncomfortable. It was busy in here!” And perhaps most importantly, Wilkerson was easy to deal with, he says, and Susan, their personal Wilkerson consultant, was knowledgeable, organized and “really good.” Now, the company can focus on their remaining location — without the hassle of carrying over merchandise that either wouldn’t fit or hadn’t sold. “The decision to hire Wilkerson was a good one,” says Moses.

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Shane Decker

Shane Decker: Prep for Krunch Time

mm

Published

on

You’re ready for your final close, and he starts negotiating.

{loadposition shanedeckerheader}

Over the last two issues, I’ve shared two types of negotiation tactics that customers use — The Nibbler and The Bogey — and how to deal with them. The final tactic is called The Krunch, and it’s usually used by men. You’ve gone all the way through your presentation and the client says, “You’ve gotta do better than that.” (I call this “The Krunch” because it’s crunch time — you’ve told him the price, you’re ready to use your final close, and he throws out this negotiation statement.) 

The Krunch is a test. He’s testing to see if you’re willing to negotiate and how badly you want to sell your product. When he throws out The Krunch and you go down on price, you’ve lost integrity because it’s obvious that you didn’t believe in the quality of the item. Chances are the client will walk because you took too much off too fast.

Instead of dropping the price immediately, find out what he means by “do better.” Better on what? Better in relation to the price? The services you offer? The product itself? And if he says, “You gotta do a lot better,” find out what “a lot” means. “A lot” might mean something different to him.

Advertisement

This is an excellent time to sell company benefits through statements of service, fact and quality.  Service: “We’ve got two jewelers in the back who can size this while you wait.”  Fact: “We’ve been here since 1920, and our diamonds are personally selected.” Quality: “This is an ideal cut; its brilliance is unequaled.”

This could also be a great time to T.O. to the manager or owner for his blessing. The owner comes out and asks the customer, “You’re looking at that? That’s one of my favorites. Your wife is going to love wearing that.” It’s a vote of confidence that means a lot coming from the owner.

If nothing else works, you can say, “Well, I want to accommodate you and I know you’ll love this piece, so what did you have in mind?” The price he gives is where you’re starting from. If it’s just a little bit, you can ask him how he’d like to take care of it. If it’s a lot, you at least have a starting point to go up from.

One tactic you can use in any negotiation is the Take-away. Let’s say you sell a brand name watch, which comes with a two-year warranty, and you offer an additional three-year warranty in the store. The customer hears the price and says, “You gotta do better than that.” You respond, “I can come down a little on the price, but you have to take away a little somewhere else.” So you suggest taking away the extra years. The client says, “No, I want the full warranty.” When you re-state your price, he’s more likely to accept it because the extra value has been justified in his mind.

Negotiating on price is an absolute last resort. However, there are some clients who just won’t buy unless you negotiate. Refusing to “cave in,” while at the same time helping the customer to feel he’s getting a great value, upholds your personal integrity, as well as that of your store and your product.

 

Advertisement

Shane Decker has provided sales training for more than 3,000 stores worldwide. Contact him at (317) 535-8676 or at ex-sell-ence.com.

This story is from the March 2011 edition of INSTORE.

Advertisement

SPONSORED VIDEO

Wilkerson Testimonials

If It’s Time to Consolidate, It’s Time to Call Wilkerson

When Tom Moses decided to close one of the two Moses Jewelers stores in western Pennsylvania, it was time to call in the experts. After reviewing two candidates, Moses, a co-owner of the 72 year-old business, decided to go with Wilkerson. The sale went better than expected. Concerned about running it during the pandemic, Moses says it might have helped the sale. “People wanted to get out, so there was pent-up demand,” he says. “Folks were not traveling so there was disposable income, and we don’t recall a single client commenting to us, feeling uncomfortable. It was busy in here!” And perhaps most importantly, Wilkerson was easy to deal with, he says, and Susan, their personal Wilkerson consultant, was knowledgeable, organized and “really good.” Now, the company can focus on their remaining location — without the hassle of carrying over merchandise that either wouldn’t fit or hadn’t sold. “The decision to hire Wilkerson was a good one,” says Moses.

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Most Popular