Legal Close
Written by Jamie May
I’ve posted previously about the importance of understanding the law in sales. This post is to explain that in sales having the basics of law, is also a great way to improve negotiation and close rates.
Contracts
• Understanding the basics of contract law and torts, so you are not selling a losing deal
• ‘Nice people’ or people high in trait agreeableness will often concede too much
Example language: ‘Clause 3.77 means we will be losing money on this deal and needs to be in the pricing’.
Using industry standards
• You may paint someone into a legal corner where they are compelled to buy. So, not necessarily the best way to win friends.
• Works with minimum standards like Work Health and Safety (WHS) Act, National Construction Code (NCC).
Example language: ‘The Construction Code of Australia says that you must have this standard installed. If I can install and provide the certification to show you are compliant, will you make the purchase?’
Loopholes in existing contracts
• Identifying; unlawful clauses, inconsistencies or misrepresentation can help get a prospect out of an existing bad deal so they can sign with you
Example language: ‘Your current provider has a service level agreement of 2 hours, they are over 3.5 hours 90% of the time and in clear breech’.
Contract expiry
• In many industries you have 2–5-year contracts, ergo a purchase window barrier to sale
• 80% of the sale is timing your follow up
Example language: ‘Hi John, we spoke a year ago, you explained that your contract was expiring in a month, could we discuss becoming your provider now?’
ISO standards
• While not legally enforceable failure to understand ISO standards and your product can lose you deals as it may be a strong minimum negotiable.
If you would like to learn more about negotiation, please book a one-on-one.
