Beware of These Risky Sales Tactics That Are Doomed to Fail or Backfire

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Beware of These Risky Sales Tactics That Are Doomed to Fail or Backfire

By Jason Foodman | Edited by Maria Bailey | Entrepreneur Magazine | July 16, 202

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Based on his experience of selling technology products and his daughter’s recent experience of buying a car, he could see some familiar sales tactics (and mistakes) playing out.  Here are some of his reflection on these similarities between the two different sales situations, but at the same time informing us about the Ubiquitousness of these tactics across the industries.

1. Playing the waiting game.  All this went down after my daughter had spent hours on the lot. It was getting late in the day on a Saturday, and the manager knew she was hoping to get it done. At some level, the manager was wearing her down and playing out the clock, playing the “waiting game.” It didn’t work in this case, but often, this notion of using time as a weapon can be very effective. Utilizing time as a strategic element in the negotiation process can be effective, but it must be used carefully and respectfully. Pushing too hard on time constraints can backfire.
2. Closing the deal by changing the sales lineup.  When the salesperson reached his personal negotiation line or felt he would lose her, he brought in his manager. In addition to adding some time to the clock, this step created a new opportunity for a new dynamic. The dealership never really wants a potential buyer to walk out the door, so if one person doesn’t get the job done, it’s always worth trying someone else. Involving a manager or company administrator in the negotiation process can create new dynamics and opportunities for closing a deal.
3. Proposing your best and final offer.  Although I laughed hysterically when I heard about the red stamp, I soon realized it was actually a smart move. Once upon a time, I’m guessing some sales and marketing people sat in a room, and someone said, “I have an idea — let’s make a red stamp that says final and use that during negotiations.” Everyone probably laughed, and they would have said, “No, I’m serious!” And then everyone thought about it and agreed, as funny of an idea as it was, it actually made sense. It’s one thing to tell someone something verbally, but when it’s “official” and in red ink on paper, it’s human nature to believe it and take it as indisputable. Using psychological sales tactics to create a Fear Of Missing Out (FOMO) effect, such as a “Final Offer” stamp, can be effective in conveying seriousness and finality, but you have to honor your word, or you will likely lose credibility.
4. Trying a shutdown move too soon.  Understanding the customer’s needs, discussing the product’s value and building rapport and trust can be crucial in successful sales.
5. Putting an out-of-reach offer on the table.  In negotiation, it’s important to understand the other party’s budget and limits before making an offer. Being aware of their constraints will increase the likelihood of closing a deal.
6. Saying your offer is “final” when it’s not.  If you offer something of value at a good price and tell them it’s “final” (which the author personally doesn’t recommend as a sales tactic), then stand by it and mean it. Your word has to mean something.  If a “final offer” is presented, standing by it as your final word is essential. If adjustments are needed, they should include additional incentives or value to maintain trust and credibility.

3 key takeaways from the article

1. Based on his experience of selling technology products and his daughter’s recent experience of buying a car, he could see some familiar sales tactics (and mistakes) playing out.  
2. Here are some of his reflection on these similarities between the two different sales situations, but at the same time informing us about the Ubiquitousness of these tactics across the industries.  These are: playing the waiting game, closing the deal by changing the sales lineup, proposing your best and final offer, trying a shutdown move too soon, putting an out-of-reach offer on the table, and saying your offer is “final” when it’s not.
3. Sales is an art, no doubt about that. A great salesperson builds a relationship, asks questions and listens, understands the client’s pain points, is honest and transparent, and operates with integrity. Of course, strategies, techniques, incentives, and a lot of human emotion and psychology are at play, but all of them can happen successfully without losing your credibility.

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Topics:  Entrepreneurship, Sales, Marketing