Deal management is the systematic approach by which businesses execute deals. It encompasses all aspects of deal sourcing, contract negotiation, and contract execution - from when a client initially expresses interest in doing business with a company to after the final shipment has been made. 

The basis for any profitable business relationship is strong deal sourcing and well-crafted contracts that protect both parties once the relationship begins. 

For this reason it is important to establish practices within an organization that facilitate successful deal making; at times these can be fully documented procedures and protocols and at other times their exact nature will remain somewhat more intangible (e.g., organizational culture).

"Deal management" is a term that describes the process of negotiating and closing deals between a sales team and their clients, as well as the processes to make sure those deals remain up-to-date. 

This may involve monitoring to identify when changes such as discounts need to be applied, or keeping an eye out for potential issues with payment if taking credit card numbers over the phone.

What Are The Main Advantages of Deal Management?

The main advantages of having strong deal management procedures in place include:

1) Deal standards – dealing with similar deals means you can create standard terms and conditions (e.g., discount levels and payment methods) which will speed up the process next time it comes around;

2) Contractual protection – making sure all your terms and conditions are agreed at every stage reduces chance of a dispute arising later down the line;

3) Network growth – a stronger sales team will be able to negotiate better deals from suppliers, meaning more cash flow can be directed to reward yourself for helping your customers grow their businesses.

Deal Management Tips For Closing More Sales

Here are our management tips to help you close more sales and ensure you're getting the best deal possible:

1. Know Your Numbers- It's not enough to know how much margin you make off each sale - you need to know your average order value (AOV), conversion rate, cost of goods sold (COGS), annual margin yield (AMY) and payback period for each product. 

Armed with this information, it will be easier to negotiate a better price by demonstrating why a higher discount is justified given your data.

2. Become a Trusted Advisor- Customers buy from people they trust – so being able to speak confidently about what you can offer is critical in convincing them that they need your services or products. 

Demonstrate your expertise by pointing out any challenges they may encounter, and make suggestions about how to overcome them.

3. Asking for a Better Deal- Asking is simple – just ask! However, you need to be respectful, truthful and transparent in order to get the best outcome. If you don't feel confident asking face-to-face, consider sending an email or making a phone call instead.

4. Be Willing to Walk Away- Price isn't everything – so if there's no room for negotiation on price but they're still interested in your product/service, try suggesting another payment option that works better for you both (e.g., paying upfront or over time). 

This will ensure everyone gets what they want without risking being taken advantage of by the other party.

5. Negotiation Not a Dirty Word- Negotiating doesn't have to be seen as a negative thing. The more you do it, the better you'll get at it so don't feel intimidated by it - ask for what you want and just go for it!

6. Staff Training- Consistent sales processes mean employees of all levels can pitch in when they're needed, leading to more sales being closed without any hitches along the way. 

Manage your team's training needs with software that allows you to access their progress reports and professional development plans (PDP).

7. Proper Management on Hand- Make sure your employees are on-hand to immediately respond if there are problems with payments or discount requests - nobody wants to wait around while someone else fiddles through paperwork on your behalf.

8. Offer Flexible Payment Options- Asking for upfront payments can limit your client's ability to make changes in response to new information or circumstances - so instead, let them pay over time with payment plans that are tailored to their needs. 

You can also make it easier for them by accepting PayPal and credit card payments over the phone, using the details they provide the first time they place an order.

9. Make It Easy To Buy!- You should never assume someone is going to buy from you - instead, go out of your way to help them understand why you're a credible option compared against any other service providers they may be considering buying from, including price comparison sites like PriceRunner.

Remember: customers buy on emotion , so make them feel like they can't live without you!

10. Keep Track of Everything With Software- If you're serious about getting the best deal possible for your customers, use software that lets you track all details over time - including product costs and sales figures, payment schedules and the running total owed by customers. 

You can then easily drill down into specific data to provide relevant information when negotiating with customers or suppliers.

11. Make Friends with the Finance Department- Poor communication between sales and finance can be a major source of friction in most businesses – so make sure you're on good terms with whoever handles the money at your company. 

It's never enough just to know how much cash is in the bank; use that information to help forecast future demand for your products (and thus raise buy orders).

12. Get Ahead of the Curve- Your competitors are very likely to have similar pricing, so taking a slightly longer-term view can help you get an edge on them - if you take out a deal larger than they'll be able to afford, it will give you more time to benefit from the future growth opportunities that come with it. 

Try working out what your target customer's next biggest investment will be (this might require some GP/Business Development team member interaction), then look for suppliers that would be happy to supply additional products or services at preferential rates now, in exchange for getting their name before this prospect as well as your own. 

This process will also allow you to hold a better hand when it comes to negotiating a better price for yourself.

13. Don't be afraid of taking a hit now for a bigger gain later- In some cases, it may make sense to give away volume discounts or cut your margin significantly in order to get the "foot in the door" with a large prospect – this will encourage them to buy from you again, and can affect their buying decisions from other suppliers as well. 

In these cases, you'll want to set up clear communication channels so that you know who is going over-budget and can take action before things spiral out of control. 

And always have contingency plans if something goes wrong - by setting aside money at the beginning of the year for instances like these, it means much less stress for you and your team.

14. Don't be a miser- If you're not spending money, it's more difficult to make money – so put some of that income back into the business by holding training sessions or conferences to bring people together, promoting your services on social media and reviewing your product line to ensure it still delivers maximum value. 

A great deal is no good if nobody knows about or understands it!

How To Streamline Your Deal Management Process?

In order to make sure your management processes are as streamlined as possible, consider these three steps:

1. Create a master-plan – as part of any marketing strategy, create a document that outlines what needs to be achieved and how it will happen. 

This should include strategies on where your business is going within the next 12 months, who you need to talk to in order to get there and key performance indicators (KPIs) that every member of staff will know about. 

It's also worthwhile creating a negotiating strategy with each sales member, including appropriate discounts they should be looking to negotiate in different scenarios.

2. Establish KPIs – it's important to have goals in place that your staff can work towards. If you're not sure what these are, talk to your managers about their targets and check out this list of possible ideas.

For example, if a sales person is losing deals because customers are asking for payment terms not allowed by the supplier they represent, encouraging them to find out why will enable them to negotiate better deals with suppliers in future (which will benefit everyone).

3. Creating an effective feedback loop – gathering information on how deal negotiations actually go down is the only way you'll know whether new strategies are working or need changing. 

For example, if a sales person asked for the discount and was refused by the supplier, it may be because they didn't approach them in an effective way (or their KPI to make sure they were prepared for such scenarios wasn't met). 

If you don't know when problems arise, you can't fix them!

4. Review, review, review – try to get in the habit of reviewing each deal after it's been done. If you can create a spreadsheet with everyone's deals listed individually, this will enable you to see which members of staff are bringing in the best deals and who might need further training or support. 

Follow up with any issues that might arise before they become major problems.

How do these steps fit into your business?

Here are 7 top tips for improving your process:

1. Make sure you know your customer – if you don't have complete information about your customer base, not only will it be harder to sell to them, but new opportunities might also go unnoticed. 

That's why it's worth investing in a CRM (customer relationship management) tool that keeps tabs on everyone and everything that happens between you and your customers. 

Handle more deals with less effort by using the technology available to make the most of all chances to close.

2. Know where your business is going – as part of any marketing strategy, create a document that outlines what needs to be achieved and how it will happen within the next 12 months, who you need to talk to in order to get there and key performance indicators (KPIs) that every member of staff will know about. 

Having a clear view of the future is essential to ensuring you don't miss any opportunities along the way.

3. Pick up on hints – salespeople are used to picking up on small signs their customers give off inadvertently, so make sure everyone in your business knows what these are! 

For example, if someone mentions that they're looking for new office space, putting them in touch with an estate agent or office interior design company could be a big hit (if they're ready for it). 

Perhaps someone who tells you they like your brand out of the blue is worth following up on later - ask them why and see how you can help them get more value from what they already buy from you.

4. Get a team round – even if you're used to going it alone, making sure everyone has a chance to discuss the potential opportunities they might have missed will ensure that everyone comes out a winner. 

It's possible some people might see new opportunities your competitors are taking advantage of; by working together you can all benefit from them.

5. Create clear targets – set targets for every member of staff that map against the overarching business strategy and work with them to help them achieve their aims. 

This will help show how important everyone's role is in the overall success of your business, as well as showing where potential problems (and successes) may lie along the way. 

For example, if someone misses out on an opportunity because they didn't have the knowledge they needed, you can try to get them some extra training rather than letting it become a problem.

6. Don't get ahead of yourself – keep your goals achievable by splitting them up into small, realistic chunks that are more likely to be success-full.

For example, if someone wants to make £2m in sales next year over three quarters, allow them enough time to do it but don't give them so much that they have no focus or chance of being successful. 

If you spread too many goals among too few people then you risk not only losing momentum but also missing out on new opportunities as well!

7. Everything counts – sometimes just one deal makes all the difference between making a profit and going bankrupt. 

So make sure you don't ignore any opportunity; if something doesn't look like it'll be profitable now, it might well do in the future. At the end of the day, every deal counts and they all add up to create a successful business!