| Have you ever been on the wrong end of a | | | | can't walk, you can't talk." Translation: If you are |
| negotiation? You closed the business only to | | | | not willing to walk from a deal, chances are you |
| discover the more business you write the more | | | | will discount too quickly, not ask for a |
| money you lose! In other words, you didn't | | | | concessions, and end up with margins that are not |
| negotiate price, terms and agreements to create | | | | sustainable. |
| a true win-win outcome. It's important to be | | | | The root cause of not being able to walk is |
| equipped with good consultative skills as well as | | | | two-fold. The first issue is that you don't have a |
| good negotiating skills. Here are three skills to add | | | | full sales pipeline and are in desperation mode (you |
| to your sales tool belt. | | | | will take any deal). The second problem is that |
| 1. Clearly identify your ideal client. | | | | you aren't really convicted of the value you bring |
| Neil Rackham, author of "Rethinking the Sales | | | | to the table. The fix is to double your prospecting |
| Force," does a great job of explaining the impact | | | | efforts and change your self-talk to, "I am worth |
| of the information age on business. He tells how | | | | it." |
| the information age is creating two distinct type | | | | 3. Have a concession strategy. |
| of buyers: the transactional buyer and the value | | | | There are many tactics taught in negotiation |
| buyer. | | | | training. One of the most important is having a |
| The transactional buyer is interested in one thing | | | | concession strategy. Many salespeople give up |
| and one thing only....price. This buyer doesn't care | | | | something to get the deal, i.e. price, terms, |
| about your expertise or relationships. They believe | | | | delivery, etc. The problem is they don't ask for |
| they can find the same expertise on the internet | | | | something in return. For example, if you decide to |
| and the vendor (YOU) can be easily replaced. | | | | concede on price, the concession should only be |
| The value buyer still values expertise, business | | | | offered if you get something in return. You can |
| relationships, and the shortcuts both those areas | | | | give a 5% discount if you get more volume, |
| bring. They are still willing to pay for value and | | | | upfront payment, consolidated delivery schedules, |
| recognize the tangibles and intangibles which | | | | more bundled products, or extended contracts. |
| accompany that business model. | | | | When you have a concession strategy, you |
| Know who you want to serve and who you best | | | | create a win-win scenario for both parties. And |
| serve. If you are a value solution provider calling | | | | when everyone is winning, you ensure repeat, |
| on a transactional buyer, don't bother negotiating | | | | long-term relationships. |
| unless you're ready to be the low priced provider. | | | | Get good at negotiation and create true win-win |
| 2. Get the proper mindset. | | | | sales relationships. Let someone else deal with the |
| Years ago I attended a negotiation seminar. The | | | | price shoppers. |
| first lesson given by the instructor was, "If you | | | | |