Learn how to negotiate pricing and payment terms with institutional buyers and close more deals. Discover how to craft a value proposition, research the buyer, prepare your BATNA, and more.

Don't focus on the price as much as the value. Remember: The price is how much they're paying but the value is how much they're getting from it. So, don't focus the conversation around the price, instead, talk about their goals and their bottlenecks. How big is this problem? (measure it), and then how solvable is it with your solution? (measure that too). Present that in a way that it's hard for them to deny the fact that they actually need your solution to solve their problem. If we agree to this the negotiation follows after.

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How can you negotiate pricing and payment terms with an institutional buyer?

Negotiating pricing and payment terms with an institutional buyer can be challenging, but also rewarding. Institutional buyers are large organizations that buy goods or services in bulk, often for multiple departments or locations. They usually have strict procurement processes, budgets, and contracts that can limit your flexibility and leverage. However, they also offer long-term relationships, referrals, and opportunities to scale your business. In this article, you will learn some tips and techniques to negotiate effectively with institutional buyers and close more deals.

1 Know your value proposition

Before you enter any negotiation, you need to have a clear and compelling value proposition for your offer. A value proposition is the unique benefit that your product or service provides to the buyer, and how it solves their problem or meets their need. You should be able to articulate your value proposition in a concise and convincing way, and back it up with evidence, such as testimonials, case studies, or demos. Your value proposition should also highlight your competitive advantage, or what makes you different from other vendors in the market.

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Marcos Mylius

Top Sales Voice, Investidor, Consultor, Autor e Instrutor I Especialista em Vendas B2B Complexas I 📈 Academia de Vendas - maior catálogo de conteúdos Vendas B2B 💬
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Em vendas, a proposta de valor destaca como seu produto ou serviço atende às necessidades do cliente de maneira única. Isso envolve comunicar claramente os benefícios e vantagens que sua oferta oferece. É fundamental levar “valor” ao cliente.

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Paulo Castela Alves

GRC Solutions - Cybersecurity - Ex@Binance | Ex @Bnp Paribas |
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You need to know your worth. What are you fixing what are you improving How much time are you saving the client How much potential loss are you saving the client How much are you increasing their revenue Once you know all these questions, you are able to stand your ground and fix your pricing. I always need to leave room for negotiation, but always know what you bring to the table

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Wade Gilcher

President Cleveland Corporate Limousine and Cleveland Corporate Protection Services
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Do your research. Know the client pain points, current vendor, and who else is bidding on the project. If you know your market you’ll be able to offer the client added value based upon your strengths and drive the current pain from your competitors weaknesses

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2 Research the buyer

Another key step before negotiating is to research the buyer and their organization. You should understand their goals, challenges, priorities, and decision-making process. You should also find out who are the key stakeholders, influencers, and gatekeepers involved in the purchase, and what are their roles, interests, and concerns. You can use various sources of information, such as their website, social media, annual reports, industry publications, or referrals. The more you know about the buyer, the better you can tailor your offer and communication to their needs and preferences.

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Marcos Mylius

Top Sales Voice, Investidor, Consultor, Autor e Instrutor I Especialista em Vendas B2B Complexas I 📈 Academia de Vendas - maior catálogo de conteúdos Vendas B2B 💬
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Pesquisar um comprador envolve entender suas necessidades, histórico de compras e preferências. Utilize redes sociais, ferramentas online e até mesmo perguntas diretas para obter informações relevantes. Lembre-se de respeitar a privacidade e ética ao conduzir essa pesquisa.

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3 Prepare your BATNA

Your BATNA, or best alternative to a negotiated agreement, is the most favorable option that you have if the negotiation fails. Your BATNA gives you a benchmark to evaluate the offers and counteroffers that you receive from the buyer, and to decide whether to accept, reject, or walk away from them. Your BATNA also gives you confidence and leverage in the negotiation, as you can show the buyer that you have other options and that you are not desperate to close the deal. To prepare your BATNA, you should identify and compare the alternatives that you have in the market, and determine the minimum acceptable terms that you are willing to accept from the buyer.

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4 Be flexible and creative

When negotiating pricing and payment terms with an institutional buyer, you should be flexible and creative in finding solutions that work for both parties. You should not focus only on the price, but also on the value that you can deliver and receive. For example, you can offer discounts, incentives, or bonuses for larger volumes, longer contracts, or referrals. You can also ask for concessions, such as faster payments, exclusivity, or testimonials. You should also be open to exploring different payment methods, such as upfront, installment, or performance-based payments. The key is to find a win-win outcome that satisfies both your and the buyer's interests and goals.

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5 Handle objections and close the deal

The final stage of the negotiation is to handle any objections that the buyer may have and to close the deal. Objections are not necessarily rejections, but rather requests for more information, clarification, or reassurance. You should listen carefully to the buyer's objections, acknowledge their concerns, and address them with facts, benefits, and examples. You should also use trial closes, or questions that test the buyer's readiness to buy, such as "How do you feel about this offer?" or "What are the next steps to finalize the agreement?" If the buyer agrees to your terms, you should confirm the deal in writing and follow up with the necessary paperwork and actions.

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Marcos Mylius

Top Sales Voice, Investidor, Consultor, Autor e Instrutor I Especialista em Vendas B2B Complexas I 📈 Academia de Vendas - maior catálogo de conteúdos Vendas B2B 💬
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Lidar com objeções em negociações envolve compreender as preocupações do cliente e apresentar soluções que destaquem os benefícios do seu produto ou serviço. Escute atentamente, responda de forma construtiva e destaque os pontos positivos. O fechamento bem-sucedido muitas vezes resulta em mostrar como sua oferta atende às necessidades específicas do cliente. Outro ponto importante é, que as objeções do cliente são ótimas fontes de aprendizado.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Pablo Gallego 💡

Email Deliverability Agency Owner
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Don't focus on the price as much as the value. Remember: The price is how much they're paying but the value is how much they're getting from it. So, don't focus the conversation around the price, instead, talk about their goals and their bottlenecks. How big is this problem? (measure it), and then how solvable is it with your solution? (measure that too). Present that in a way that it's hard for them to deny the fact that they actually need your solution to solve their problem. If we agree to this the negotiation follows after.

Like
Marcos Mylius

Top Sales Voice, Investidor, Consultor, Autor e Instrutor I Especialista em Vendas B2B Complexas I 📈 Academia de Vendas - maior catálogo de conteúdos Vendas B2B 💬
Report contribution
Ao negociar com um comprador institucional, destaque os benefícios do seu produto ou serviço, mostre como pode atender às necessidades específicas da instituição e esteja preparado para discutir preços com base em volume ou contratos a longo prazo. Demonstre flexibilidade nas condições de pagamento e esteja aberto a negociar termos que beneficiem ambas as partes. Pesquise sobre as políticas de compras da instituição para adaptar sua abordagem de acordo.

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How can you negotiate pricing and payment terms with an institutional buyer?

1

2

3

4

5

6

1 Know your value proposition

2 Research the buyer

3 Prepare your BATNA

4 Be flexible and creative

5 Handle objections and close the deal

6 Here’s what else to consider

Sales

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How can you negotiate pricing and payment terms with an institutional buyer?

1

2

3

4

5

6

1 Know your value proposition

2 Research the buyer

3 Prepare your BATNA

4 Be flexible and creative

5 Handle objections and close the deal

6 Here’s what else to consider

Sales

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