Touraj TabatabaiSales Wealth Academy · I'm a B2B tech sales coach with 17+ years in the field as an individual contributor, closing deals from 6 to 8 figures across SaaS, Data & AI, CRM, ERP, Cybersecurity, and more. I founded Sales Wealth Academy to help AEs and SDRs transform challenging sales jobs into thriving, high-earning careers — not through generic training, but through personalized coaching and proven frameworks that reps actually implement. My mission is to empower sales professionals to achieve financial freedom.

Why Negotiate on Value Instead of Price?

Name: Why Negotiate on Value Instead of Price?
Uploaded: 2024-12-09T21:54:42+00:00
Duration: 1 min 9 s
Channel: Touraj Tabatabai
Description: In this short talk, the speaker argues that sales negotiations should focus on the value a solution delivers rather than on price discounts. He…

9 Dec 2024 · 1 min

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1:09

In this short talk, the speaker argues that sales negotiations should focus on the value a solution delivers rather than on price discounts. He illustrates the point with a real‑world scenario: a client’s Salesforce representative reduced the annual license fee by 70% to match a new e‑commerce platform’s contract price. However, the new platform offers two critical features that Salesforce cannot provide, which are projected to generate at least $10 million in additional annual revenue for the client. The speaker emphasizes that while cost reductions are part of ROI, the true investment decision should be based on the revenue‑generating value of the new platform. By framing the conversation around value and ROI, the negotiation becomes a no‑brainer despite the steep price cut offered by Salesforce.

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Hey, here's a great example of how and why to negotiate from the value instead of negotiating on price. A rep of mine recently called pretty flustered at the fact that he found out Salesforce reduced their annual license agreement by 70% in order to match their contract price for a new e-commerce platform. Well, guess what? Salesforce cannot provide the value that this new platform can. It was proven through their business assessment that just 2 new features the new platform can offer are gonna exponentially grow the revenues of online sales for this this company. Salesforce cannot match these features. It's just not part of their ecosystem. The ROI, while it might be shocking for the executives to see, whoa, we can reduce our costs significantly just by staying on Salesforce, that's only one part of the equation. That's the investment part of ROI. The return is not going to change by reducing your costs. By making the decision to invest the time and resources to migrate over to the new platform, they're going to make at least $10 million more annually. When you look at it through that lens, it's still a no-brainer, even though Salesforce decided to stop screwing you over going forward, they still can't match the level of service the new platform can.