High Ticket Closing Top Negotiation Tactics and Tips Ed Chessman May 04, 2023
In the world of sales, closing a high ticket deal is a true nirvana moment, and the bigger the deal, the bigger the moment. But getting high ticket deals over the line requires mastering the coveted skills of high ticket closing.
Most of us start our sales careers cutting our teeth on low ticket values, but the techniques used for high ticket closing differ significantly.
In this blog post, we'll dive into the world of high ticket closing, exploring its key differences from low-cost sales, various negotiation tactics, and strategies for overcoming objections, building trust with buyers, and ultimately, closing the sale.
What is high ticket closing?
High ticket closing is a sales strategy that involves selling expensive solutions that require a significant financial investment from the buyer.
Effective high ticket closing requires a deep understanding of the buyer's needs, strong relationship-building skills, and the ability to articulate and demonstrate the value and benefits of the product or service being sold.
While the dollar amount will differ based on the category of the product or service being sold, I'd argue that any contract valued north of $100K would benefit from its approach.
High ticket closers must show the buyer the solution is worth the investment by proving real business value. This involves building relationships based on trust, developing a deep understanding of the challenges and pain points, and demonstrating how our offering can meet those needs.
Great communication skills are required, and you must work closely with the buyer to create a solid business case with a measurable return on investment (ROI). While in days gone by the rule of thumb was a minimum ROI of 3X, that may no longer suffice in today's harsh economic climate.
High ticket closing vs low-cost sales—what are the main differences?
There are four key differences between high ticket closing and low ticket sales:
1. Price
The most obvious difference between high ticket closing and low-cost sales is the price of the product or service being sold.
2. Length of the sales process
Sales cycles for high ticket deals are measured in months and sometimes years, depending on the complexity and size of the solution.
The selling process involves numerous stakeholders, the successful delivery of one or more pilots to prove capability and value, a compelling business case, and finally, navigating numerous control points, like security audits and vendor financial status checks.
In contrast, the buying decision for low ticket sales can be made quickly, and does not require lengthy due diligence.
3. Relationship building
Closing high ticket deals with high ticket clients involves building a relationship with the buyer and other key stakeholders. Building these relationships is essential in high ticket closing, to establish trust and credibility, crucial for high ticket closing.
4. Sales tactics
Closing high ticket sales involves more sophisticated sales tactics, such as negotiating strategies and objection handling, which are simply not required for low ticket deals.
What are the different negotiation tactics for high ticket closing?
As you approach the end of the high ticket closing journey, you'll need to leverage different sales skills and negotiation tactics to close high ticket sales:
Anchoring and framing
According to financial writer and Wall Street derivatives trader Adam Hayes in his article on Investopedia, there are studies proving that the initial placement of an anchor in a negotiation may have a greater impact on the ultimate result than the negotiation process itself.
Anchoring is a negotiation technique for high ticket closing that leverages cognitive bias, where we rely on information that is memorable.
A good sales professional uses it to set an initial price point high, anchoring a buyer's perception of what is expensive, so that subsequent prices seem more reasonable in comparison.
Framing in high ticket closing is about setting our product in a certain context, and with high ticket sales, we often frame a solution as one that will deliver a strong ROI or cost savings over time.
Mirroring and matching
According to expert technology and innovation writer Doug Bonderud, customers are far more likely to buy things if they like the seller, as simple as that sounds.
Mirroring and matching are methods used in sales—and negotiation of high ticket sales—to establish a feeling of trust and understanding. The concept is to imitate the buyer's body language and tone of voice to create a sense of familiarity and connection.
By mirroring the buyer's behaviour, we make them feel at ease, which can lead to greater success in the negotiation or sale.
Using silence to your advantage
Harvard Law School's Program on Negotiation blog talks about how silence allows you to suppress your need to promote yourself and enhance your inclination to listen well.
By taking a few seconds or even minutes before we respond to a point during a negotiation, we create the time and space required for active listening, allowing us to identify a way to respond that creates alignment towards a common goal.
Silence is also a sales skill used to control the negotiation in high ticket closing. For example, using silence after you present an offer or counter-offer gives the buyer time to think, and process the information without feeling pressured to respond immediately.
In some cases, they may even offer additional information, or make a more favourable counter-offer during this pause.
Navigating high-pressure negotiations
LinkedIn Negotiation's article on handling high pressure negotiations tells us that we should always enter into a negotiation well prepared.
This may seem like a no-brainer, but without a solid plan and good knowledge of the wants and needs of both sides, your high value sale is sure to fall through.
High ticket closers plan for every conceivable question, request, and possible objection in painstaking detail.
Good preparation means we can calmly respond to objections and deal with any roadblocks, and we can protect our profit margins because we've anticipated these challenges and have great counter moves and offers ready to put on the table.
Thorough preparation provides a solid foundation to remain cool under pressure in high ticket sales.
What are the most common objections in high ticket closing?
Price, risk, and need are the most common objections in high ticket closing:
Price: You anchor high, but buyers almost always ask for some level of movement on the final price. A great sales professional defends price early in the sales process by articulating and demonstrating tangible business value. Defending your high ticket price is always easier if you have built and agreed on a clear ROI, together with the buyer, as part of the business case for the investment.
Risk: A buyer who raises an objection based on risk is often challenging your ability to deliver the value and ROI you promise. This is a common objection, faced by every early-stage startup chasing a high ticket price. Providing demonstrable proof in the form of case studies and references is one way to handle this objection. Or, when those are scarce, consider putting guarantees or assurances on the table to help mitigate any perceived risk.
Need: Many executives will challenge with, "Do we really need to this?" before committing to a deal. The price is only the starting point for this objection; the buyer is also thinking about the time, effort, and resources that will be required. This objection is best handled early in the sales cycle, by exploring the level of pain and the impact to the buyer if they don't change.
What are the strategies for handling high ticket closing objections?
The single most effective strategy for handling objections in high ticket closing is to simply avoid them in the first place, which is best done by building a strong, trusted relationship with the buyer early in the sales process.
Establishing trust early is something Glass.io enables at the very beginning of a potential buyer's journey.
For example, when prospects are actively doing research on your website, Glass.io enables you start a personalised conversation at the perfect moment.
Of course, not all objections can be prevented in high ticket sales, so when they are raised, you must manage them correctly.
When a high ticket objection is raised, it is important to actively listen to and acknowledge a buyer's objection to demonstrate that you understand their concern.
If the objection can be directly addressed, do so. Where it cannot, stay positive and look for alternatives. Would adjusting the terms of the deal be sufficient? What does the buyer think a good resolution might be?
Before you agree to any movement on price, it is critical to ask if there are any other objections?
Get everything out on the table together, before you agree how to handle any single objection. Negotiating one item at a time happens all too often when we're caught off guard due to the high pressure of the moment.
You must always keep a level head during any negotiation discussion.
In closing
In the world of business-to-business sales, building strong relationships is crucial.
Your sales team plays a critical role in this process, as they must establish trust with potential buyers and understand their specific needs.
Effective communication and a deep understanding of the product or service being offered are also key to closing high-ticket deals.
"Courage is grace under pressure."—Earnest Hemingway.
Keep this front of mind during your next high stakes negotiation. Emotions aren't welcome at the table, so breathe deep, listen carefully, and for goodness' sake, get the deal done.
Happy selling, folks!
Ed Chessman is founder of cowXsales, a startup sales consultancy. He has created and closed over $22M in new business revenue leading sales for global software companies and early stage startups. Early stage tech startups are Ed’s true love where he enjoys working with founders to build great products. Ed lives on the south coast of England where he enjoys spending time with his family, running in the South Downs, and trying to master the art of sea swimming.
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