A great price and value negotiating tool

Last week I talked about Value Negotiating which also turned into an episode on my podcast.

This week I'm following it?up with probably the most powerful tool you can use to make value negotiating a reality.

Sometimes we get too focused on the process when some simple tools will mke such a huge difference to the results we get.

We've developed the Negotiation Variables Value Mapper??- a?simple tool that helps you to plot the variables in the negotiation, ranked by what is important and valuable to you and what is important and valuable to your customer. In plotting these variables we can also assign the monetary value of the benefit and cost and therefore track these after the deal is implemented.

The principle being that when you are in a negotiation and you are exploring areas of benefit for both sides to reach a deal, you should never concede value (give something away) without getting something of value in return.

And you would preferably give something of low cost to you, but high value to your customer and gain in return something of high value to you.

By plotting all the variables in the negotiation (and there are always far more than you realise, I got to 73 with a client recently) - from increased sales to faster payment to more economic logistics - you can retain control of the process.

And from a Pricing/margin perspective use those variables to move away from price concessions, make price concessions really difficult and secure prices and margins by asking for high value areas from your customer for any price concessions you may be thinking of making.

All of this should cause your customer to think that continually asking for lower prices or discounts is going to be hard work and there may be other?areas that they are more likely to gain from (which are lower cost to you, because that's the way you planned it).

Which of course is a much better way to negotiate because you and your teams have developed your approach?using the?Negotiation Variables Value Mapper?. And you can be truly collaborative with the other person as there is so much potential value to build.

Once you have created the tool?you can use and refine it further as you have more conversations with customers, you've then got a tool that is ready to go whenever you need it.

Imagine a customer?calls you and during the conversation 'dangles' a potential order for you if you can give them some discount off the list price. Rather than have to think on your feet, perhaps quickly?do some calculations, or worse still get flustered and agree to it because you fear to lose the business, you?get out your?Negotiation Variables Value Mapper??and manage the conversation away from price, whilst still giving the customer the value they want and protect your price and margin at the same time.?

The?Mapper??is a simple tool based on a simple principle, but is so powerful.

I have?many clients who now have their?Mapper??with them all the time so they can manage this part of the sales and negotiating process in the most effective way. Whenever they have a conversation with their customers they know if it turns into a negotiation they have some preparation already there to protect their margins.

So some key actions for you and your teams are to do the following;

1. Develop your?Negotiation Variables tool for your business context and situations.

2. Agree how you 'e going to use it, what are the key variables and any guidelines you want to put around them (such as flexibility on payment terms).

3. And then practice using the tool until you're confident.

If you need further help then don't hesitate to get in touch.This is probably THE tool and negotiating skill that is as guaranteed as there could be to save and make you more margin.

I can also tell you from my experience that the person you're negotiating with has probably never heard of it - a big advantage for you!