Step Up Your Negotiating Success

Professional salespeple negotiate everything from appointment times to selling prices. The end result of negotiation should be the most equitable settlement for the customer and the salesperson. The following six ideas can help you sharpen the negotiating skills you need for sales success.

1.Be prepared. The more knowledgeable and prepared you are the better solution you’ll create. Review what you already know about the client. What will he ask for and what concessions will he make? List your demands in advance. Know what you must have versus what you would like to have. In what ways are you flexible? What are your limits of authority? How much bargaining are you permitted? There is a direct relationship between how much preparation you do and the results you achieve. The more front-end time you invest, the greater the return.

2. Proactively probe. Ask questions early in the negotiating process. Determine your customer’s needs as soon as possible. Be directive with your probes. Focus on customer problem areas where you feel you offer unique solutions. Concentrate on buyer pressure points. These are areas which induce customers to make non-price decisions.

Timing, limited inventory, high demand and bad experience with your competition in the past, etc., are examples of buyer pressure points. Listen closely to their answers. Use your eyes as well as your ears. What is the customer saying or not saying? Is anything obvious because of its exclusion? How about the buyer’s nonverbals? Are they relaxed, open or defensive? Be sensitive to all your customer’s signals.

3. Remember that everything is negotiable. Your customer’s demands are the results of internal negotiations within his or her company. Any negotiation can be re-opened for discussion. Consequently, the customer’s budget for your product may be renegotiated internally if he or she is convinced of your product value. No product is overpriced unless it’s under desired.

Also, never assume that the “final” offer is the last offer you’ll receive. How many times have customers said, “This is my final offer – take it or leave it!” and ten minutes later revised their offer? Everything is negotiable – and renegotiable.

4. Use funny money for concessions. When you must concede on your end, look for funny money. This is sometimes called soft dollars. It includes free training, extra services, extended warranty, free delivery, longer payment terms, etc. You are making concessions, but they’re indirectly related to costs. It’s easier to get management to concede on these non-price issues and it allows the customer to save face while experiencing a real gain.

5. Use time patiently. Most salespeople have the word “hungry” embossed on their foreheads. Customers read this signal. They also know that prudent footdragging on their end generally opens up the concession box. I drag my feet a little and you give a little. I drag my feet a lot and you give a lot. You want to close the deal now. You’re trained to get the business as soon as possible. Close early. Close often. Close always. And it’s ironic that it’s this same frantic pace that signals customers to hold out for a better deal. They need the solution just as quickly as you need to help them. Prudently drag your feet and enhance the quality of your offer.

6. Focus on win/win results. In sales there are only two possibilities: win/win and lose/lose. The win/lose scenario is a deception. When you win and the customer loses, it’s a double loss. You may have won the order, but you’ve lost the bond with your customer. That’s a lose/lose result. When it’s lose/win, it’s still a double loss. The customer may get the best of you on this deal and you will resent the business. This manifests itself in mediocre service. You may even avoid this customer’s business in the future. Again, it’s a double loss situation. Focus on win/win. It builds the relationship and feeds customer loyalty. You feel better and the customer is satisfied. That’s always a double win. For salespeople, it’s not a question of if you will negotiate but when you will negotiate. Be prepared. Ask questions. Remember everything is negotiable. Look for non-price concessions and wait for the best solution for all parties.