| The Problem With Most Sales Negotiations | | | | price that you are going to start at, and the final |
| So there you are, all ready to start another sales | | | | price that you are willing to pay. No fallback |
| negotiation. Hold on a minute, are you really | | | | positions should cloud your mind! |
| ready? Sure you've researched the other side of | | | | In our car example, this would boil down to |
| the table, you've created a negotiation strategy, | | | | focusing on a starting price that was say, $300 |
| in fact you've done just about everything that | | | | above the invoice price and a final offer price that |
| you can think of in order to prepare to have a | | | | was $500 above the invoice price. If you were |
| successful negotiation. However, maybe you've | | | | able to strike a deal with the dealer then great - |
| overlooked the most important point of all - | | | | you'd end up paying no more than $500 above |
| setting your target for the negotiation. | | | | the invoice. If not, then you'd walk away. |
| The Right Way To Set Sales Negotiation Targets | | | | What To Do If You Don't Get Your Way |
| Doesn't everyone know how to do this? I mean | | | | So what should you do if you can't reach an |
| really - isn't the goal of any sales negotiation to | | | | agreement that meets your target with the other |
| get the best deal? Well, yes and no. Getting the | | | | side of the table? I mean come on, you really |
| best deal is what we all want to accomplish. | | | | need that new car. Simple, you still walk away. |
| However, just saying that is not enough - we | | | | Once you've left, you sit down and give things |
| need to be a bit more specific and that's where | | | | some thought. |
| setting targets comes in. | | | | If you changed your target, what would the other |
| It always helps if we have an example to make | | | | side have to do for you? If you decided that yes, |
| things clearer. Let's say that you were getting | | | | you could pay $700 above the invoice for the |
| ready to go buy a new car. You do your | | | | car, what would you want the dealer to do for |
| research, check out the dealer's invoice price | | | | you - more options, better financing, etc. Once |
| (what they paid for the car) and you decide that | | | | you've picked your new target, you can return to |
| you don't want to pay any more than $500 over | | | | the negotiating table and restart the negotiations. |
| invoice. However, if push came to shove, your | | | | By not bending on your target price and walking |
| budget would allow you to go as high as $700 | | | | away, you mentally prepared yourself to do a |
| over invoice. | | | | good job of negotiating. You had no other options |
| Well wait a minute, just what is your negotiating | | | | to fall back on and so you didn't. |
| goal here? Is it $500 over invoice or $700 over | | | | What All Of This Means For You |
| invoice? I hate to tell you this, but if you go into a | | | | Having a solid target as a part of your negotiating |
| negotiation with wishy-washy targets like this, | | | | plan is the key to making a negotiation successful. |
| you're going to end up paying $700 over invoice | | | | If you confuse things by having multiple targets |
| every time. | | | | you'll never be sure just exactly what you are |
| In your mind you have already set $700 over | | | | trying to accomplish during the negotiation. |
| invoice as a price that you are willing to pay and | | | | If you can't reach a deal, walk away. You can |
| when the other side digs in and starts to shove | | | | then rethink what your target should be and what |
| back, you're going to roll over and accept paying | | | | the other side would have to provide in order to |
| more than you originally wanted to. Sorry - it's | | | | support your new target. |
| human nature. | | | | How you set your target will determine what kind |
| So what are you doing wrong here? Simple, you | | | | of deal you'll eventually reach with the other side |
| are focusing on the wrong things. As you prepare | | | | of the table. Set good targets and you'll reach |
| to start a sales negotiation you should be focusing | | | | good deals. |
| on two numbers (and only two numbers): the | | | | |