another BizGro sales training course

Negotiation is a vital skill to be learned & developed by every true Business Professional.

?Sellers are normally ill-prepared for upcoming negotiations with a prospective Client or even an existing Customer.

?The common outcome is then one of a poor, flustered & totally ill-prepared Seller, being overwhelmed & resorting to the easiest & only response they have, which is discounting & giving away margin.

?It is actually hardly their fault, as there are specific skills required to become a successful Negotiator.

The few Employers / Companies who appreciate this & who invest in the time & trouble to educate their Sellers to become astute Negotiators, are the ones who gain the winning outcomes generating more profitable deals.

While intense negotiations can go in a seemingly infinite number of directions, it is the Seller who possesses these negotiation skills, who will be equipped to successfully negotiate a win-win deal.

The 12 x vital negotiation steps include :-

1) Thorough knowledge of the Seller’s Company’s product & service offering

Although this may seem to be a largely silly statement, I have been amazed at the lack of knowledge displayed by some Sellers when in a presentation meeting with a Prospect.

How on earth can you ever convince someone to support you & your Company when you as their Representative have little knowledge of what it offers?

?2) Preparation & Information gathering exercise

Before entering into any meeting with a Prospect, pre-meeting study is a fundamental & crucial element.

How can you ever make an informed business proposal if you have only a scant idea of what your Prospect does, who their Customers’ are, what opposition are they up against etc.?

?3) Define the concessions you will be happy to accede to, prior to the meeting

In the heat of the moment, a 30% discount or additional six months of support might seem perfectly acceptable.

It's only when you get back to your desk and start drafting up the contract that you realize you agreed to terms you can't or shouldn't accept.

Clearly defining the limits on price discounts, freebies, or other add-ons before you meet with your prospect will ensure you come to a mutually beneficial agreement.

?4) Establish who you will be meeting with

Another pre-meeting investigation is to establish WHO you will be meeting ~ are they the decision makers, what positions they hold in the Company, etc.

How you carry yourself & present the offering, should be adapted to suit the audience ~ eg, talking to an Accountant who is all about facts & figures will require a totally different approach to one of meeting an Operations type individual, who will be concerned with functions, efficiencies etc.

?5) Negotiate only with the Decision Maker

Many Sellers make the mistake of wasting valuable time by negotiating with the wrong person.

This Buyer tactic is often used to “soften” up the Seller.

This means that when talks begin with the true decision maker, they'll likely start at the already discounted price quoted in the first meeting.

A great outcome for the Buyer, but a poor outcome for the Seller.

?6) Let the Customer open the conversation with his needs/thoughts

You've presented the terms of the deal & the prospective Customer would like to negotiate around them & clarify points. Important to let them start the conversation.

?In the spirit of being accommodating, many Sellers are often tempted to offer a discount or an adjustment, even before the Prospect even opens their mouth.

But you don't know what they're going to say! Just as in other areas of sales, it is vitally important to listen first to gain a full appreciation of the situation, before attempting to respond.

?7) Get something in return for concessions

Healthy salesperson-customer relationships are borne out of mutual respect & trust.

A Seller should never accept every single Buyer’s demand, without making counter requests of your own.

In other words the situation becomes one of ~ “I will give to you, if you give to me”

Failure to stand up for your “rights” reflects that you are a pushover, which serves to encourage further demands.

By keeping the negotiation a win-win for both sides, the Seller & Client remain on equal footing, laying the groundwork for a mutually beneficial relationship.

?8) Avoid splitting the difference

Sellers very often become confused & simply resort to an offer to “split the difference”.

This can often do more harm to concluding a deal, then good.

EG: if the product or service costs R100 & the Prospect wants a 50% discount, the Seller should never counter with an offer of R75, even though it may seem logical to do so.

If the Seller offers a slight discount, but still keeps the number within the bounds of the originally quoted price, the Prospect will in all likelihood accept it.

And most importantly you profit margin is not slashed as badly.

?9) Expand the conversation beyond money

The most negotiated aspect of a sales deal is price, so the Seller should be prepared to talk discounts.

However, since price is tied to value & in turn, value is tied to a Customer's perception of the value of the product / service, Sellers should consider offering other considerations or freebies, rather than a simple discounted price tag.

Bear in mind that this is not a hard and fast rule -- the specific concessions a Seller makes, depends on any situation.

This requires an inherent skill & deep understanding of your Company /product value vs a competitor’s.

?10) Never put anything in writing until the conversation is wrapped up

Negotiations can swing back and forth as at this stage in the negotiation, things are fluid.

Many ideas will be proposed & while some will be accepted, others will be knocked down.

The Seller is strongly advised not to revise a contract until the meeting has ended &all parties have verbally agreed to the terms.

?11) Keep the conversation light

Although prospect and salesperson sit on opposite sides of the table during a negotiation, they will be partners if the deal is signed.

Keep the talk light and jovial to avoid creating bad blood.

Laughter is a healthy element to successful negotiation & lightens the mood, which can become intense.

?12) Be prepared to walk away if necessary

Unless you can negotiate a win-win solution, a Sellers should consider walking away.

If demands become unreasonable or unprofitable for your company, don't be afraid to walk away from the deal.

A Client who only agreed to sign if the contract was radically amended, or the price is drastically dropped, is bound to cause further problems to you the Seller & your Company, in the future.

And as they clearly don't see much value in the offering, it's only a matter of time before they become dissatisfied.

Summary

?BizGro offers Sellers an intense 1 x day negotiation training course, which unpacks each of these 12 x topics in detail.

Courses can be presented vis face to face or TEAMS options.

Learning is entrenched through Candidates being tasked with & presenting practical negotiation cases ~ & although, most hate such training course interventions, it is no more stressful than an “real life” presentation / negotiation.

Get your Sellers up to speed & become powerful Negotiators.

It is a well worthwhile investment which is retuned through greater profits & gaining valuable new accounts.???

BizGro is a leading sales training development practice ~ short course conducted via face to face & TEAMS options.