9 Sales Negotiation Techniques of Top SaaS Sellers (How to Negotiate Like a Pro)

About this Video

• Video Title: 9 Sales Negotiation Techniques of Top SaaS Sellers (How to Negotiate Like a Pro)
• Channel: Chris Orlob at pclub
• Speakers: Chris Orlob
• Duration: 00:14:05

Introduction

This video presents nine sales negotiation tips for SaaS sellers, aiming to help viewers secure desired prices and close deals efficiently. The strategies are based on the speaker's experience growing a company from $200,000 to $200 million in annual recurring revenue.

Key Takeaways

1. Delay price negotiation: Don't negotiate price until the customer acknowledges you as the preferred vendor, regardless of cost. This avoids a price war.
2. Prioritize other issues: Address all other deal aspects before price. This determines if price is the only remaining obstacle.
3. Involve a business champion: If possible, involve a business champion in negotiations to counterbalance procurement's price-focused approach.
4. Review business value upfront: Begin each negotiation session by reviewing the deal's business value to keep it in focus.
5. Define walk-away limits: Pre-determine your walk-away point before entering negotiations to prevent impulsive decisions.
6. Reciprocity in concessions: For every concession given, obtain something in return (e.g., faster closing, case study).
7. Isolate price resistance: Categorize price resistance into: (1) value uncertainty, (2) logistical constraints, or (3) deal-seeking. Address each accordingly.
8. Ask clarifying questions: When unsure, ask questions to steer the conversation and gather information.
9. Effective negotiation starts early: Actions in the initial sales stages (discovery, champion building, etc.) significantly influence later negotiations.