Sales Negotiation and Closing Flashcards

A meeting planner tells a hotel sales professional, 'Your per-person F&B package price is higher than the quote I received from your competitor.' What is the MOST effective initial response to this objection?

Answer: Ask clarifying questions to understand what the competitor's package includes and re-emphasize the unique value of your hotel's culinary experience.

The best practice for handling a price objection is to first seek understanding and re-establish value rather than immediately offering a discount. By asking what the competitor's quote includes, the salesperson can identify differences and highlight the superior value, quality, or service included in their own offer, turning the conversation from price to overall value.

During a site inspection, a sales manager asks the client, 'Now that you've seen both the Grand Ballroom and the City View Terrace, which space do you feel would be a better fit for your welcome reception?' This question is an example of which sales technique?

Answer: The Alternative Choice Close

The Alternative Choice Close involves offering the prospect two or more options to choose from, where either choice is a commitment to moving forward. By asking the client to decide on a minor point (the specific room), the salesperson is guiding them toward the larger decision of booking the event at the hotel.

Which of the following best describes the primary purpose of a 'trial close' during a sales conversation?

Answer: To assess the client's level of interest and uncover any remaining concerns before attempting a final close.

A trial close is a soft question used to take the customer's temperature and gauge their readiness to buy. Questions like, 'How does that sound so far?' help the salesperson identify and address potential obstacles before asking for the final commitment, making the process smoother and more consultative.

During a contract negotiation for a large corporate meeting, the planner starts asking detailed questions about the specific wording of the attrition and cancellation clauses. This is most likely a:

Answer: Buying signal indicating serious consideration of the proposal.

When a prospect begins to focus on the fine details of a contract, such as attrition or cancellation clauses, it is a strong buying signal. It shows they are moving beyond the general evaluation phase and are now seriously envisioning the practical and legal aspects of holding their event at the property.

Which of the following scenarios best exemplifies a successful 'win-win' negotiation outcome for a hotel and a meeting planner?

Answer: The hotel achieves its target revenue goals for the group, and the planner secures key concessions, such as complimentary meeting room Wi-Fi and a room upgrade, which are highly valued by their organization.

A win-win outcome occurs when both parties feel they have achieved their primary objectives and that the deal is fair. The hotel meets its financial needs, while the client receives value-added concessions that contribute to their event's success, fostering a positive relationship for potential repeat business.

When developing a strategy for granting concessions during a group sales negotiation, what is the most effective approach for a Certified Hospitality Sales Professional?

Answer: Preparing a list of low-cost, high-value concessions that can be traded for client commitments.

A strategic approach to negotiation involves planning ahead. By identifying concessions that are highly perceived in value by the client but have a low actual cost to the hotel (e.g., complimentary upgrades, waived fees, amenities), the salesperson can grant requests without significantly impacting profitability. These should be traded, not just given away, in exchange for something from the client, such as a larger room block or a multi-year agreement.