Definition of Negotiation "reaching the most satisfactory outcome for ALL concerned" |
Managing the Sales Negotiation Process
How many times have you heard:
Every time you hear statements like these, you're in the middle of a difficult sales negotiation. How you handle that negotiation will determine whether or not you close the sale and how profitable that sale will be. In order to give you a real edge every time, I have listed below some key points taken from my sales negotiation training seminar. Don't Believe Everything You See and Hear Part of a good salesperson's skill is to learn to read people and situations very quickly. However, when it gets down to negotiating, you have to take everything you see and hear with a grain of salt. Buyers are good negotiators, and thus they are good actors. You may be the only person who has what she needs, but everything she does and says, from body language to the words she uses, will be designed to lead you to believe that unless she gets an extra 10% off, she's going with the competition. Be skeptical. Be suspicious. Test, probe, and see what happens. Don't Offer Your Bottom Line Early in the Negotiation How many times have you been asked to "give me your best price"? Have you ever given your best price only to discover that the buyer still wanted more? You have to play the game. It's expected. If you could drop your price by 10%, start out with 0%, or 2%, or 4%. Leave yourself room to negotiate some more. Who knows - you may get it for a 2% reduction. You might have to go all the way to 10%, but often you won't. A little stubbornness pays big dividends. Get Something in Return for Your Added Value What if you discover that the buyer wants to be able to track his expenditures for your products or services in a way that is far more detailed and complex than is standard for your industry? What if your account tracking system is set up in a way that you can provide that information at essentially no cost to you? Often the salesperson's overwhelming temptation is to jump in and say, "Oh, we can do that. That's no problem." Before you do, however, think about your options. You could throw it in as part of the package and try to build good will. Or you could take a deep breath and try something like, "That's a difficult problem that will require some effort on our part, but it's doable." In the second case, without committing, you've told the buyer it is possible. You may not be able to get him to pay extra for it but you may be able to use it as a bargaining chip in resisting price concessions. Which way you choose to go will depend on who your customer is and on the situation. However, you do have options. Sell and Negotiate Simultaneously Think of selling and negotiating as two sides of the same coin. Sometimes one side is face up, and sometimes the other side, but they are always both there. This is particularly true in your earliest contacts with the buyer. The face the buyer sees is that of a salesperson demonstrating features and benefits. The hidden face is that of a negotiator probing and seeking out information that may be invaluable later should issues like price, terms, quality, delivery, etc. have to be negotiated. Be Patient Finally, and most important, be patient. Sales is a high energy, fast moving business. Patience is one commodity that is in relatively short supply, but if you're impatient in a negotiation, you'll lose your shirt. If I'm negotiating with you and I know that you're impatient, I will hold out just a little longer, no matter how desperate I am to make a deal with you. As long as I know you're in a hurry, I'll wait. So be patient. Take the time that you need, don't rush to give in, don't show your anxiety, stay cool and don't panic. Negotiation is a process and a game. Use the process and play the game. You'll be astonished at the difference that it makes! (c) Michael Schatzki - 2004. All rights reserved. About The Author Michael Schatzki is a master negotiator who, for over 20 years, has provided sales negotiation training seminars and coaching for thousands of people in the U.S. and globally. More than 75% of Mike's programs are for satisfied, repeat customers. The Negotiation Dynamics(r) system really works. Check out all of Mike's articles at http://www.NegotiationDynamics.com. Mike can be reached at (888) 766-3530.
MORE RESOURCES: The Talks That Could Have Ended the War in Ukraine Foreign Affairs Magazine PUSD responds to latest twist in teachers union negotiations Piedmont Exedra Explainer: Here's how CFL negotiation lists work and how the Roughriders have used theirs Regina Leader Post Strike imminent: No more contract negotiations before Providence Sacred Heart tech workers' work stoppage next week The Spokesman Review Sticker Shock Drags Out USAF's E-7 Negotiations with Boeing Air & Space Forces Magazine USD Transactional Law Team Wins Seller's Best Contract Draft Negotiation at the Wayne State / Taft Transactional Law ... University of San Diego Website KIPP St. Louis high school teachers plan to strike Friday over contract negotiations St. Louis Post-Dispatch Student Perspectives On APT Negotiations – The Piedmont Highlander The Piedmont Highlander INC-4: Ticking Clock in Ottawa for Critical Plastics Treaty Negotiations Center for International Environmental Law Punta Gorda to negotiate with YMCA to operate Cooper Street Recreation Center FOX 4 News Fort Myers WFTX Rep. Raskin Leads Letter to Biden Administration Urging Continued Negotiation for Release of PhD Candidate ... Congressman Jamie Raskin Effective Negotiation Strategies | Calendar City of Glendale, CA (.gov) Timeline Of Teacher Contract Negotiations – The Piedmont Highlander The Piedmont Highlander Howard Brown reaches tentative agreement with union after 1.5 years of contentious negotiations Windy City Times Monthly Medicare Drug Price Negotiation Savings by State Center For American Progress US State Department calls Qatar 'close partner' on hostage negotiations, says talks continue The Jerusalem Post FSU contract negotiations stall over meeting format debate The Mass Media Ex-Google recruiter shares salary negotiation tips for job seekers: 'If you don’t ask, the answer is... Moneycontrol Medicare Drug Price Negotiation Will Lower Prices by Thousands of Dollars per Month Center For American Progress Virginia Democrats agree to extend timeline of budget negotiations with Youngkin Bluefield Daily Telegraph Center for Negotiation & Dispute Resolution UC Law San Francisco Saratoga County employees continue to picket for fairer contract while negotiations are on hold WAMC Health care options for 35000 Coloradans on the line in negotiations between CommonSpirit Health and Anthem Blue ... Summit Daily PSI delegation at the Fourth Session of the Plastic Treaty negotiation Public Services International Tokayev Stresses Urgent Need for Lasting Peace Between Armenia and Azerbaijan, Offers Kazakhstan as Negotiation ... Astana Times Marshall Ramsey: Negotiations Mississippi Today Advocates Push for Full Medicaid Expansion as Mississippi Legislators Enter Negotiations U.S. News & World Report Budget negotiations to continue in Virginia SuperTalk 92.9 UPDATE: Is Andy Cohen in Negotiations to Leave Bravo? Reality Blurb Report: No New NBA Media Rights Deal Expected Within Exclusive Negotiating Window Barrett Sports Media Counseling Creators: Influencers, Artists, and Trendsetters Negotiation Competition and Conference University of Miami: News@theU Medicare Drug Negotiations Officially Underway Medicare Rights Center Jaguars' Trevor Lawrence talks contract negotiations with Jaguars The Florida Times-Union Lottery, gambling bill heads to Alabama legislative conference committee for negotiations WVTM13 Birmingham Speaker Heastie Attempting to Kill NY HEAT Act In Budget Negotiations Food and Water Watch Pandemic Negotiations: ‘Hopeful And Scary Times’ Health Policy Watch Kylian Mbappé's Exit Strategy from PSG Amid Positive Real Madrid Negotiations OneFootball - English Medicare price negotiation and pharmaceutical innovation following the Inflation Reduction Act Nature.com WTF is the Great Negotiation? Digiday Jaguars' Trevor Lawrence talks ongoing contract extension negotiations The Florida Times-Union Advice Column: Scholarship Negotiation Poets&Quants D51 board to discuss MVEA president's salary during negotiations Grand Junction Daily Sentinel A Winning Streak? IRA's Drug Price Negotiation Program Survives Again Crowell & Moring LLP Free Agency Negotiation Period Begins Monday at Noon Buccaneers.com Administration Provides More Data on First 10 Drugs Subject to Price Negotiation Medicare Rights Center Negotiation Ethics: Winning Without Selling Your Soul | Insights Vinson & Elkins LLP |
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