For high-end jewelry sellers, the sales process involves a lot more than smiling at a customer and directing them to an item of interest. Sales negotiations techniques are a key part of turning casual shoppers into buyers.
Just like with any aspect of sales and customer relationship management, retail sales associates must understand how to refine the negotiation process without compromising the final price and profit. The end result is more win-win outcomes: larger deals and more customer satisfaction.
What are sales negotiation strategies?
A sales negotiation involves a sales associate interacting with a customer to reach mutually beneficial outcomes for both the store and the buyer. So sales negotiation strategies are the techniques a sales associate uses to master the negotiation process.
No matter what type of selling process your jewelry brand engages in—online or off—the negotiation process aims for the same things. The goals include building trust, making an attractive sales pitch, and finalizing a sale that leads to repeat business.
As mentioned above, getting a single sale is a great start, but it doesn't really affect the overall success of your business long-term. Fostering long-term relationships through respectful, informative, and responsive sales negotiation skills will. The established trust lasts far beyond the first or second interaction, and echoes in the customer's mind after they pay and bring their new item home.
What your sales teams need to know for negotiation strategy success
Any sales associate who works for a quality jewelry store likely already has essential skills in customer service, product presentation, and in-depth knowledge on the type of items you specifically sell.
Building on this foundation is what divides basic, one-time retail sales from a customer experience that leads to dedication and loyalty. Promoting smart negotiation techniques helps make this possible.
Preparation for sales conversations
Besides the aforementioned product knowledge, it helps for sales team members to know exactly who they're talking to when they start negotiations. This is made easier if you’re already collecting data about individual customers through a customer relationship management (CRM) software. The more they understand about the buyer's decision-making process, values, and pain points, the easier it will be to convince them to buy.
It's also necessary for those who will speak directly to the customers to know what they can and cannot offer. While they shouldn't automatically go for a deep discount, perhaps they can offer to bundle certain products together at a lower price than buying them individually. Lay these out clearly and double check their knowledge before they start engaging in negotiations.
Building rapport leads to long-term relationships
Next, the customer needs to trust that the sales associate or jeweler is 100% honest, forthright, and cares about their business for more than just bottom-line revenue. The sales negotiation process therefore becomes a conversation with plenty of active listening, empathy, and authenticity.
This type of relationship selling works better for emotion-driven purchases like high-end jewelry. Someone wants a new necklace to look and feel beautiful or a pair of designer earrings to become a trendsetter. It's quite different from wanting a functional tech item, for example. Tailor the sales pitch and entire selling process to make the customer part of the item's life story.
Make the ticket price more than attractive
Too many sales teams focus on the value of a sale purely from a cost perspective. While it’s true that you can probably convince even the highest income customer to buy more if you give discounts or package deals, that is not the way jewelers make a name for themselves in the industry. Sales have their place, but automatic discounts make the item feel cheap. The customer may get the idea that it's not worth much, and that will reflect in their status.
Teach the sales teams that the price on the tag, or whatever was established through whatever system your shop uses, is what they should get for the item. It's part of their job to demonstrate the value of the bracelet or ring as well as the value of buying from the specific brand. The shoppers attracted to the jeweler can afford the cost. They must be lured into accepting it.
How do you do this? Establish right away that you will not haggle, but never state that outright in an insulting or overbearing manner. Instead, sales associates should use professional, impressive language. If the customer insists they're only comfortable paying less than the stated price, offer an alternative with a smaller gemstone, for example, or a different but similar style.
Ask questions and wait for the answers
This powerful sales technique goes back to gathering and using data intelligently. The more information you can get from a potential buyer about what they actually want, the better. Usually, people don't just want a diamond and gold ring. They want a symbol of their love that will make their future bride declare their everlasting love. They don't want a stylish designer necklace just because it matches their dress. They want recognition from their peer group as a trendsetter.
Sales teams who recognize these things are better equipped to remain patient and calm with shoppers who object to counteroffers or value considerations. Ask what events they will wear the piece to, or if it is a gift for someone special. More importantly, wait and listen for their answers without injecting more chatter about quality, fashion, or prices.
Conclusion
Learning all these techniques and more take time, practice, and heavy use of well-analyzed data. With a customer relationship management program like Clientbook, it becomes much easier for jewelers to train their staff in the best ways to engage customers. Insist on full understanding of product lines, target audiences, and reasons behind luxury purchases. Engage in role-playing with both easy and difficult customer types. Make strategic plans for specific issues and lay out a clear list of things that sales reps can promise or offer.
In the end, you can finalize more purchases and foster long-term relationships with high-value customers as a jeweler if you engage in effective sales negotiation techniques. Equipping the entire sales team with essential training and ongoing support makes it that much easier.
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