10 SaaS negotiation tips

Chris Orlob shares key SaaS negotiation tips to help close more deals:

1. Start early

• Begin negotiating from the start. Great discovery early on makes it easier.

• Quantify pain and align buying criteria to your favor.

2. Build multiple champions

• Multi-threading acts as an insurance policy during tough negotiations.

3. Align with the economic buyer

• Midway through, secure a meeting with the EB and get their buy-in on a 'proof of value.'

4. Wait for 'Vendor of Choice'

• Don’t negotiate until your customer dubs you 'vendor of choice.'

5. Delay price negotiations

• Only discuss price when it’s the final issue. Address all other steps first.

6. Bring your champion

• Involve a champion who understands the value when negotiating with procurement.

7. Review business value

• Start negotiations by reviewing the business value.

8. Isolate price resistance

• Ask, "What's driving you to need this pricing change with such urgency?"

• Identify if it’s due to lack of business value, logistical issues, or budget concerns.

9. Know your limits

• Define your walk-away limit to avoid unprofitable deals.

10. Ask questions

• When uncertain, ask questions like "Why?" to gain clarity.

Conclusion:

Preparation and Strategy: Begin early, align with key players, delay price talks until necessary, and know your limits to steer negotiations successfully.

12 tactics for price negotiation

Richard Harris shares practical advice for smooth price negotiations:

1. Prepare:

   • Research your customer and set clear goals.

   • Know your walk-away point.

2. Communicate:

   • Be upfront about terms.

   • Align your team on negotiation points.

3. Be flexible:

   • Offer and ask for small concessions.

   • Use mutual interests to keep talks on track.

4. Use tools:

   • Automate tasks with CPQ software.

   • Ensure pricing aligns with market standards.

Best practices:

• Listen actively: Understand your prospect’s needs.

• Show empathy: Connect by understanding their experience.

• Use positive language: Prefer “and” over “but.”

• Handle objections: Treat them as opportunities.

• Know your competition: Be honest about your capabilities.

   

  Find the other tactics in the article on Salesforce.

Negotiation tips from Mike Gallardo

Mike Gallardo highlights common mistakes in sales negotiations and offers actionable advice:

Mistake sellers make: Rushing negotiations and conceding discounts too quickly.

Instead do this:

1. Set the stage

   • Initiate a conversation about pricing.

   • Example: "Hey Jill, sounds like we're both motivated to find a path to partnership. Would you be open to a conversation about our pricing proposal?"

2. Be curious

   • Seek to understand the buyer's perspective.

   • Example: "I'd like to learn about your perspective on the terms. The current proposal is for a yearly commitment. What's your take on that?"

3. Communicate needs

   • Explain what you need in return.

   • Example: "We discussed some helpful levers for my internal business case. One is the size of the implementation. Would you be open to bringing on your entire team instead of a soft launch?"

Key advice:

• Slow down and have a conversation.

• A well-handled sales process will lead to productive discussions about terms and pricing.