SPC Sales Negotiation 1 — Questions and Answers
Question 1: What does BATNA stand for in negotiation?
- Best Alternative To a Negotiated Agreement (Correct answer)
- Basic Approach To Negotiating Agreements
- Budget Allocation for Target Net Accounts
- Best Approach To Negotiating Annually
Correct answer: Best Alternative To a Negotiated Agreement
BATNA is your best course of action if a current negotiation fails, and knowing it gives you confidence and a walk-away point.
Question 2: In a sales negotiation, what is the 'anchor' effect?
- The tendency for the first number offered to heavily influence the final outcome (Correct answer)
- The process of documenting agreement terms
- A technique to delay negotiations while gathering information
- Setting a fixed price that cannot be changed
Correct answer: The tendency for the first number offered to heavily influence the final outcome
The anchoring effect means the first offer made in a negotiation disproportionately shapes subsequent counteroffers and the final result.
Question 3: When is the best time to discuss pricing in a sales negotiation?
- At the very start of the conversation to set expectations
- After establishing the value the product/service delivers to the customer (Correct answer)
- Only after the customer asks three times
- Pricing should never be introduced by the salesperson
Correct answer: After establishing the value the product/service delivers to the customer
Discussing price after establishing value ensures the customer evaluates cost in relation to the benefit received, making the price more defensible.
Question 4: What is a 'concession strategy' in sales negotiation?
- Immediately agreeing to all customer requests
- A planned approach to giving up certain terms in exchange for something of equal or greater value (Correct answer)
- Refusing to change any terms of the offer
- Providing concessions only at the end of the fiscal quarter
Correct answer: A planned approach to giving up certain terms in exchange for something of equal or greater value
A concession strategy involves deliberately trading value — giving up something of lower cost to you in return for something of higher value.
Question 5: Which negotiation style focuses on maximizing value for both parties rather than just winning for one side?
- Competitive (win-lose)
- Collaborative (win-win) (Correct answer)
- Avoidant (no-deal preference)
- Accommodating (lose-win)
Correct answer: Collaborative (win-win)
Collaborative negotiation seeks mutual gain and is most effective for long-term sales relationships where ongoing business is desired.
Question 6: A customer says 'your price is too high.' What is the most effective initial response in a sales negotiation?
- Immediately discount by 10%
- Ask clarifying questions to understand what they are comparing your price to and what value drivers matter most (Correct answer)
- Defend the price without acknowledging the concern
- End the negotiation if they push back on price
Correct answer: Ask clarifying questions to understand what they are comparing your price to and what value drivers matter most
Asking clarifying questions uncovers the real objection — whether it is budget, competitor pricing, or perceived value mismatch — before making any concession.
SPC Sales Negotiation 1
What does BATNA stand for in negotiation?