Category Archives: negotiations
Are You Caught in a Negotiating Trap?
Here’s a common scenario: You’ve just presented your truly tailored, well researched, totally relevant proposal. The customer, who had been nodding in agreement all along, now has a strange look on her face. The change happened the minute you mentioned price.
She says your price is too high.
It’s your move. What do you do? If you start negotiating on price, trying to find a figure that she’ll accept without hurting your business, you’ve just landed in a negotiation trap.
The trap is in starting to negotiate too early, before justifying your value. This is how a lot of money is lost, either by discounting too early or by leaving money on the table.
Getting pushback on price is a common occurrence for sales professionals. That’s why it’s important to recognize the negotiation trap and learn how to avoid it.
First, don’t start off trying to resolve any immediate price objections; focus instead on justifying the value of your proposal.
Consider the objection as an opportunity to learn more about the customer’s situation. Where does the objection come from? Is the customer at the end of a budget cycle? Would splitting payment over two cycles be workable? Or, would changing delivery options add value?
The point is, you need to understand what the customer is trying to accomplish so that you can determine which terms are most important. This can be more » Continue Reading.
Successful Negotiations: Why it’s Critical Not to Lose Sight of the Big Picture
“Are we negotiating?”
That succinct bit of dialogue from the 1997 movie “The Devil’s Advocate” serves as a good reminder for sales professionals to heed when selling to prospects or existing accounts. Don’t take for granted that it is a mere formality or confined to the period leading up to inking an agreement. You are constantly negotiating and should not only realize this, but practice their approach.
Negotiating is certainly about prices and fees, but also about so much more. What’s negotiable? Pretty much any aspect of a sale can be negotiated from delivery date, warranty, and payment or service terms to product features, account team, and the like. What’s important to realize is that each bit of dialogue and revelation throughout the sale process enlightens both seller and buyer alike with information that will influence this deal – or the next.
How to Spot an Adversarial Negotiator
Asymmetric warfare is what military and defense experts call it when an adversary seeks to attack where you are weakest. An enemy weaker than you will often use this method as part of the idea of choosing the battlefield. In military affairs, this is a smart idea. The military’s goal is to defeat resistance. The win-win, the mutual accommodations, of effective negotiations only then can come.
What You Can Learn From the Rolling Stones about Win-Win Negotiations
Mick Jagger got it right when he wrote “You can’t always get what you want.” You can’t always get what you want. But if you try sometimes you just might find you get what you need.
Win-win negotiations are where both parties to the negotiation walk away satisfied. They have each gotten something they can live with. They can go back to their bosses, their boards of directors, their stockholders, their union membership, their government, their constituents, and all other stakeholders and report “we were successful.” Win-win negotiations leave each side with a good taste in their mouths and with good opinions of the process and the result. Each side will want to deal with the other party in the future.
In today’s video blog, David DiStefano, President and CEO of Richardson, shares some of his best executive practices for participating in and improving the environment of negotiations.