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Proven Methods Used by Canadian Entrepreneurs to Close Deals

Posted by K. F. on April 4, 2016

 

Once the meetings are done and all the questions have been answered, the only thing left to do is to close the deal. As a Canadian entrepreneur, you are usually bidding against a competitor, and while you might be able to bring the deal to the table, the deal is not done until signing.

Let’s face it: getting a client from the request-for-proposal stage to actually signing on the dotted line can be a stressful and difficult task. But with a few tips, any business person can be a better closer.

1. Offer incentives

Closing a deal is sometimes a matter of giving a client an extra incentive to do business with you instead of your competitors. One way to do this is by sweetening the deal -- either at the beginning of the sales process or right near the close when the customer is weighing a purchase or seems to be wavering on finalizing the transaction. 

You can sweeten the deal by throwing in freebies that have high perceived value. Other ways of sweetening a deal include adding support services, ancillary products or one-on-one help that the customer may desire. 

Smart entrepreneurs know what their clients value most -- whether it's cost, quality, performance, convenience or other benefits. Using this information, add incentives to help satisfy customers' wants and needs.

2. Be flexible with payments

Some entrepreneurs lose out on snagging paying customers because the business owner is too rigid in the payment process, or they're out of touch with how customers want to pay. 

Depending on your target customers, some clients want to pay using more traditional methods, such as credit cards, cheques or cash. But with advancements in digital technology, other clients may prefer to use online or mobile payment methods, such as PayPal, Apple Pay or Google Wallet.

Those who are open and willing to accept a broader range of payments will diversify their client base, establish or maintain a broader income stream, and close more deals.

3. Negotiate from a position of strength

Knowing how hard to negotiate is always tricky for entrepreneurs hungry to close more deals. But just because you're seeking additional revenue doesn't mean you should cave in and drastically slash your prices at the first sign of a price objection. 

It's just as counterproductive to become desperate as it is to fall victim to greediness. As hard as it can be, need and greed shouldn't rule your decision-making during business negotiations. Instead, you should negotiate from a position of strength, based on your unique features, benefits, capabilities or offerings.

When you have a really strong sense of what you and your products or services are worth in the marketplace, don't be afraid to ask for pricing that reflects your value. You'll close deals with the right customers -- and sidestep those who aren't a good fit.

Too many entrepreneurs sell themselves short in the hunt for new business. That's a big mistake. It's harder to raise prices later, especially for existing customers. So it's better to set your pricing accurately and accordingly from the get-go, and update prices gradually as necessary or as market conditions change.

4. Offer free trials

A final way to close a deal is to offer a free (or nearly free) trial offer of the product or service you're selling. Some examples are 30 days of complimentary service, a "no money down" purchase for a piece of equipment or a month-long subscription/trial offer for free or deeply discounted software.

A free or almost free trial can be an easy, low-risk way for a new client to give your offerings a try. So by tempting a customer with an offer that's basically cost-free you greatly increase the chance of turning that prospect into a paying client.

Related Reading: How to Market to Customers when the Free Trial is Over

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