How to sell in a seller’s market?  One might think, “Easy.  Manifest Destiny.  Just go for all you can get.”   

You’ve been counting the days until Christmas.  The market has turned-and it’s too bad that buyers are getting coal in their stockings.  Deal with it!  After all, you did when the tables were turned the last year or two.  Right?  

Wrong.  The consummate Sales Professional knows better.  He or she knows that times will change-there is an ebb and flow to business.  Hard markets get soft and soft markets harden.  Supply shrinks and prices go up.  Warehouses fill and prices go down–seasons come and go.  

John Wooden, famous UCLA basketball coach said, “Never too high, never too low.”  That is, when we’re winning, we are probably not as good as we think we are, and when we’re losing we’re probably not as bad as we think we are either.”

Things do tend to even out in the long run.  

Look at today’s high prices of raw materials.  Remember the good old days when the U.S. sucked up all of the world’s metal, ore and oil at slightly exploitative prices?  

A construction boom in developing Asian countries has helped to drive up steel prices 46% over the past 12 months.  Lumber prices are up 25%.   Cement is in such short supply that builders in the mid-Atlantic and southwestern U.S. have a difficult time finding it.  And oil prices…well, just how much did you pay to fill up your SUV today?  Next week you can do it again or buy Denmark.

“Projects have been delayed because I’ve had to renegotiate prices on steel,” says Jeff Intoci, VP of Avino Construction in Northport, N.Y.  “I now shop around to multiple vendors, whereas I used to use only one.”  Like most builders, Intoci is adding clauses in contracts that allow him to account for the rising costs.  But because he does a lot of work for the government, and those contracts are iron clad on price–there’s a limit to how much he can charge.  “It affects the bottom line and it hurts us competitively.”  He says. 

Bob Rippel, Director of Sales Training at BAX Global says, “For years, it’s been a common industry practice to pass-on fuel surcharges to clients.  We don’t like it and the traffic managers don’t either, but it’s a reality of the freight business.  Hot or cold markets can also dramatically affect our airplane capacity.  The main thing we try to do is make our clients feel as though they are being treated fairly.  We’re both in business to make a profit, and they understand that market conditions are often the key drivers.”  

You’ve just taken the elevator from the outhouse to the penthouse.  So now what?  Here is grist for your mill as you have some hard conversations with today’s price-challenged buyer:

Negotiate.  It’s not a zero sum game.  Whenever and wherever possible, look for the win-win in each sales opportunity.  Maybe your price position today is very firm; however, point out how your deal really does satisfy the client’s interests and priorities, given current market conditions.  

Stress supply.  As long as inventories hold out on your end, position this as “good news” to the customer.  Sure, it depends on whose ox is being gored, but at least you can fill the order.  The customer can keep his manufacturing line going, and hopefully, pass the price bump through to his constituency.

Add value.  Look for opportunities to sweeten the stew when price is making it hard to stomach.  You always have options-maybe it’s in reduced packing or shipping charges, or reduced or waived fees on selected services you offer.  Be creative and solutions oriented. 

Have the business conversation.  Be able to explain, in minute detail, what’s driving the price increases.  Ensure you have the charts, graphs and business rationale at your fingertips to support your argument.  Take the emotion out of the conversation and talk straight.

Help your buyer sell the deal to his constituency.  Offer a reasonable, cogent explanation that will resonate with your buyer’s boss.  Use “industry standards” as a tool for doing this.  Stress industry practices and protocol.  Cite proof sources.  Give your buyer the ammo he needs to make a good case for each purchase he makes.

Provide options and brainstorm.  If price really is the problem, look for options that might dovetail both of your mutual interests.  Does the buyer absolutely have to have that grade of stainless steel?  Could he live with an alternate grade?  If so, the price goes down, sir.  Try the Taco Bell mantra here–think outside the bun.  Bueno.     

Over service the client.  Have empathy and remember how difficult things can be when you’re on the other side of the table.  Smother  your client with extra service, follow up and support.  Go the extra mile for him.  He’ll feel a little better about the higher prices if he knows he’s getting the Nordstrom treatment.  

Sell smart.  Now, more than ever, your buyer will be shopping your prices.  Don’t leave chips on the table or lose a deal because you’ve gotten fat, dumb and happy.  Ensure you’ve uncovered needs, sold value, positioned benefits, and have closed, based on the “total cost of ownership” model.

Be generous at the end.  Is there any one, last thing you can do when the negotiation and deal making is done to make the buyer feel good?  Throw in a tie?  Give back a little margin on a small ticket item?  Often, it’s what you do at the end that colors the total content of the conversation.  When’s the last time you followed up with a personal, hand written thank you note?   

Not all sales professionals look at market conditions in the same way.  

For example, take John Ollen, a Senior Managing Director at CB Richard Ellis.  With over 35 years of experience, John has seen buyer and seller markets come and go like waves lapping on the shore.  He says, “It’s my belief that real sales professionals exhibit the same selling behaviors in any type of market.  You should take a unilateral approach-a transparent view.  If you’re focused on a solid, long-term relationship, you look for synergies in each deal with both tenant and landlord needs being met.”

Maybe there isn’t any one way to deal with shifting market conditions. 

Too many variables exist.  What’s important is to keep your perspective.  

If you’re the only guy selling bottled water in the desert, how much do you charge?  OK, the market sets that price.  But, that’s rare in today’s world– temporary, at best.

The real issue might lie with your definition of your buyer-is he a customer or a client?  The difference?  A “customer” is transactional.  A client is someone with whom you have a longstanding relationship and a personal investment.  Most of today’s sales professionals are long-term, trusted advisors and partners.  It’s about winning hearts and minds, not command and control. 

Bob Mraz, VP of Sales at TW Metals puts it perfectly:  “We’re going to be continually looking for ways to add value for our clients in a seller’s market like we’re in right now.  Maybe that’s deburring, making a cut or cleaning the product.  It might be in packing or shipping.  We view this is as a golden opportunity-a crucible.  Not just from a profit perspective, but from the standpoint of winning a client over for the long run, by doing things right for him-right by him-now and for years to come.”

Don’t forget Christmas comes once each year.  Regardless of buyer or seller’s markets.  Think long term.  Be a Pro.  Sell smart.