Managing the Sales Negotiation Process

How many times have you heard:or services in a way that is far more detailed and
* "You've got to drop your price by 10% or wecomplex than is standard for your industry? What
will have no choice but to go with yourif your account tracking system is set up in a
competition."way that you can provide that information at
* "You will have to make an exception to youressentially no cost to you? Often the
policy if you want our business."salesperson's overwhelming temptation is to jump
* "I know that you have good quality and service,in and say, "Oh, we can do that. That's no
but so do your competitors. What we need toproblem." Before you do, however, think about
focus on here is your pricing."your options. You could throw it in as part of the
* "I agree that those special services you keeppackage and try to build good will. Or you could
bringing up would be nice, but we simply don'ttake a deep breath and try something like, "That's
have the funds to purchase them. Could youa difficult problem that will require some effort on
include them at no additional cost?"our part, but it's doable." In the second case,
Every time you hear statements like these,without committing, you've told the buyer it is
you're in the middle of a difficult sales negotiation.possible. You may not be able to get him to pay
How you handle that negotiation will determineextra for it but you may be able to use it as a
whether or not you close the sale and howbargaining chip in resisting price concessions. Which
profitable that sale will be. In order to give you away you choose to go will depend on who your
real edge every time, I have listed below somecustomer is and on the situation. However, you
key points taken from my sales negotiationdo have options.
training program.Sell and Negotiate Simultaneously
Don't Believe Everything You See and HearThink of selling and negotiating as two sides of
Part of a good salesperson's skill is to learn tothe same coin. Sometimes one side is face up,
read people and situations very quickly. However,and sometimes the other side, but they are
when it gets down to negotiating, you have toalways both there. This is particularly true in your
take everything you see and hear with a grain ofearliest contacts with the buyer. The face the
salt. Buyers are good negotiators, and thus theybuyer sees is that of a salesperson demonstrating
are good actors. You may be the only personfeatures and benefits. The hidden face is that of
who has what she needs, but everything shea negotiator probing and seeking out information
does and says, from body language to the wordsthat may be invaluable later should issues like
she uses, will be designed to lead you to believeprice, terms, quality, delivery, etc. have to be
that unless she gets an extra 10% off, she'snegotiated.
going with the competition. Be skeptical. BeBe Patient
suspicious. Test, probe, and see what happens.Finally, and most important, be patient. Sales is a
Don't Offer Your Bottom Line Early in thehigh energy, fast moving business. Patience is one
Negotiationcommodity that is in relatively short supply, but if
How many times have you been asked to "giveyou're impatient in a negotiation, you'll lose your
me your best price"? Have you ever given yourshirt. If I'm negotiating with you and I know that
best price only to discover that the buyer stillyou're impatient, I will hold out just a little longer,
wanted more? You have to play the game. It'sno matter how desperate I am to make a deal
expected. If you could drop your price by 10%,with you. As long as I know you're in a hurry, I'll
start out with 0%, or 2%, or 4%. Leave yourselfwait. So be patient. Take the time that you need,
room to negotiate some more. Who knows - youdon't rush to give in, don't show your anxiety,
may get it for a 2% reduction. You might havestay cool and don't panic. Negotiation is a process
to go all the way to 10%, but often you won't. Aand a game. Use the process and play the game.
little stubbornness pays big dividends.You'll be astonished at the difference that it
Get Something in Return for Your Added Valuemakes!
What if you discover that the buyer wants to be(c) Michael Schatzki - 2004. All rights reserved.
able to track his expenditures for your products