Legal Close

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