| I often get requests by sales mangers for | | | | outweigh the cost of purchase and gain |
| negotiation skills training for their sales people | | | | agreement to move forward to close the deal |
| when in fact upon further investigation their | | | | and do the work. |
| people usually need consultative selling skills training | | | | - Can't vary the terms. If you can't vary terms |
| first. You cannot negotiate effectively if you | | | | and negotiate and the client won't agree to move |
| cannot sell effectively first. Both are processes | | | | forward with you on the current plan then it is a |
| which need to be learned and applied in the | | | | 'no sale'. Move on rather than give it away. Giving |
| correct order. However over 90% of sales | | | | it away is not negotiating it is just giving |
| people follow no logical process when selling or | | | | something of value away which costs you. You |
| negotiating leaving their sales at risk. | | | | negotiate when you: |
| Everybody negotiates all the time, at work, at | | | | - Both parties can vary the terms |
| home, and as a consumer and as a sales person. | | | | - Resources are scarce |
| For some people it seems easy, but others view | | | | - Agreement and conflict exit simultaneously |
| the process of negotiation as a source of conflict | | | | Value versus Cost |
| to be resisted and avoided if possible. | | | | To help you avoid unnecessary negotiations when |
| Negotiation is a process and a skill that can be | | | | selling first of all find out what people really value |
| developed. Negotiation can be described as a | | | | and what is most important to them. |
| process that involves two or more people dealing | | | | If you and your sales people are having trouble |
| with each other with the intention of forming an | | | | doing this then you need to improve your and |
| agreement and a commitment to a course of | | | | your sales teams' ability to have quality business |
| action. In a sales environment, negotiation often | | | | discussions with clients and prospects, in particular, |
| involves a series of communications between two | | | | their ability to thoroughly understand their |
| parties to form an agreement about the details of | | | | customers priorities and business needs and how |
| a sales solution. | | | | your products and service can be crafted into |
| In many cases, it is possible for a proposal to be | | | | relevant solutions that will address specific |
| generated that satisfies the needs of both parties. | | | | requirements and create value for the client. |
| However, sometimes one or more parties may | | | | This would include developing their questioning, |
| have to accept less than they had hoped for | | | | creative problem solving, up selling/cross selling |
| when they entered the negotiation process. And | | | | and solution selling skills. |
| finally, in other situations, the fulfillment of one | | | | Effective negotiation in a sales situation requires |
| party's wishes may come entirely at the expense | | | | people being able to: |
| of the other party's. | | | | - Be Assertive |
| Therefore, negotiation is the process of navigating | | | | - Challenge every assertion |
| your way through each of these alternatives, | | | | - Get the real facts before offering up anything |
| ideally aiming to come to an agreement that is | | | | - Uncover real needs and issues |
| complimentary to both parties' needs. | | | | - Negotiate late and negotiate little |
| Possible outcomes | | | | - Manage conflict and not take it personally |
| There are five possible outcomes of negotiation: | | | | - Analyse the situation and the demands and |
| | | | weigh them up appropriately |
| 1. Compete = Win:Lose | | | | - Keep the customers' needs in mind at all times |
| 2. Avoid = Lose:Lose | | | | as well as your own |
| 3. Accommodate = Lose:Win | | | | - Aim high |
| 4. Compromise = neutral | | | | - Respond to demands for concession |
| 5. Collaborate = Win:Win In my experience when I | | | | - Develop a proposal with guide-lines and |
| negotiate I aim for #5 and get either #5 or #4. I | | | | trade-offs (if necessary) |
| know that I do not want #'s 1-3 to happen. | | | | - Prevent the customer from 'fragmenting' your |
| However too often I see sales people end up | | | | proposal |
| with #'s 2 or 3. This is no good for anyone and | | | | - Present a total proposal that 'adds up' to a win |
| can train clients to expect things they do not | | | | win solution |
| deserve like unnecessary discounts. | | | | - Focus on achieving satisfaction for both parties |
| Rule of thumb for negotiation in sales: | | | | - Don't make the 1st move |
| - Unless you have the power or authority to | | | | - Don't' accept the 1st offer |
| change or modify terms, create new product | | | | - Are willing to walk away |
| solutions, you cannot negotiate. | | | | - Use all their most effective communication skills |
| - Negotiation should never be a substitute for | | | | (listening, paraphrasing, questioning, problem |
| selling. You need to be able to sell well first and | | | | solving, etc.) |
| foremost. | | | | - Apply a process |
| - Negotiation is an effective strategic tool that | | | | - Don't avoid negotiations |
| you use ONLY when you need it. | | | | - Have a 'negotiation consciousness' |
| - The earlier you give away concessions in the | | | | When do you need to negotiate instead of sell? |
| sales process the less impact they will have. | | | | - When a client demands an arrangement which is |
| - Be aware of giving sales people the authority to | | | | different from what you are able to offer |
| discount. All too often this is a licence to give | | | | - When you are dealing with a tough client who |
| away your margins too soon and too often. We | | | | wants to 'win' |
| see this when people 'cave in' on price too soon | | | | - When a client and you disagree on some aspect |
| for fear having to deal with potential conflict which | | | | of the proposal |
| usually doesn't eventuate if the sale is done | | | | - When the client will not agree to your initial offer |
| effectively. However they never let the sale run | | | | (find out why because some people just like to |
| its course to find out. | | | | win and want to bargain as part of the process. |
| - Discounting is a negotiation tool that should only | | | | This is quite common is some cultures as part of |
| be applied as a last resort and should have a | | | | the ritual of the sale) |
| trade off in it for your business so can you | | | | - When we are unable to reach agreement, even |
| benefit from the deal as well. This is different | | | | after many discussions |
| from volume pricing which rewards people for | | | | - When you can't move forward unless you |
| buying bulk from you. | | | | change your approach some way |
| - If you postpone tough negotiations whenever | | | | - When you can't deliver from you current suite |
| possible you will miss learning about new things, | | | | of resources or you need to step outside of |
| getting new ideas, new ways of pulling your offer | | | | what you normally do to win the business (take |
| together as well as creating potential conflict | | | | care as this can be very costly) I hope this helps |
| down the track. You sell when you: | | | | put some perspective to selling and negotiation. |
| - Identify clients' real needs and priorities, create | | | | Remember everybody lives by selling something. |
| viable solutions that are of value to the client and | | | | |