RAIN Group Releases Results from Global Study on Sales Negotiation
713 buyers and sellers reveal what tactics work and what doesn't in sales negotiations today; According to buyers 6 out of 10 sellers cave on price
By: RAIN Group
Spearheaded by the RAIN Group Center for Sales Research, the group of analysts studied responses from 264 sellers and 449 buyers.
"Negotiation is different than it was even just a decade ago. We wanted to better understand the factors influencing negotiation outcomes, the tactics used by both sellers and buyers, and to learn what works and what doesn't in negotiations today," said Mike Schultz, president of RAIN Group and director of the Center for Sales Research.
The study looked at what top performers in sales negotiation do differently from the rest, negotiation tactics used by both buyers and sellers, what buyers want, the role of price, and the impact of negotiation training.
Below are a few discoveries from the study:
Top Performance in Sales Negotiation
• Top Performers are 3.1x more likely than The Rest to achieve their pricing target.
• Top Performers are 12.5x more likely than The Rest to be very satisfied with the outcome of the negotiation.
• Top Performers are 3.5x more likely than The Rest to be extremely confident participating in negotiations.
Negotiation Success Factors and Tactics
• Buyers find a wide variety of the negotiation tactics they use with sellers effective from 63% to 85%.
• The #1 factor most separating Top Performers from The Rest is understanding the power and leverage held by each side in the negotiation.
What Buyers Want
• Only 1 in 5 buyers believe sellers deeply understand their ROI case.
• Only 19% of buyers strongly agree sellers provide ideas in the selling process.
Role of Price
• Top Performers are 1.7x more likely to find coming in high on price and negotiating down a very effective approach vs. coming in at core price and holding firm.
• 88% of buyers receive a discount in the final agreement.
• 62% of buyers agree they have the flexibility to pay more if the supplier demonstrates why doing so is worth it.
Impact of Training
• Buyers are 1.5x more likely than sellers to have received extremely effective negotiation training.
• Top Performers are 9.3x more likely to receive extremely effective negotiation training than The Rest.
To gain access to more data, register for the complimentary on-demand webinar The State of Sales Negotiation here: https://hubs.ly/
Purchase the report here: https://hubs.ly/