Managing the Sales Negotiation Process

How many times have you heard:

• "You've got to drop your price by 10% or we will have no choice but to go with your competition."

• "You will have to make an exception to your policy if you want our business."

• "I know that you have good quality and service, but so do your competitors. What we need to focus on here is your pricing."

• "I agree that those special services you keep bringing up would be nice, but we simply don't have the funds to purchase them. Could you include them at no additional cost?"

Every time you hear statements like these, you're in the middle of a difficult sales negotiation. How you handle that negotiation will determine whether or not you close the sale and how profitable that sale will be. In order to give you a real edge every time, I have listed below some key points taken from my sales negotiation training seminar.

Don't Believe Everything You See and Hear

Part of a good salesperson's skill is to learn to read people and situations very quickly. However, when it gets down to negotiating, you have to take everything you see and hear with a grain of salt. Buyers are good negotiators, and thus they are good actors. You may be the only person who has what she needs, but everything she does and says, from body language to the words she uses, will be designed to lead you to believe that unless she gets an extra 10% off, she's going with the competition. Be skeptical. Be suspicious. Test, probe, and see what happens.

Don't Offer Your Bottom Line Early in the Negotiation

How many times have you been asked to "give me your best price"? Have you ever given your best price only to discover that the buyer still wanted more? You have to play the game. It's expected. If you could drop your price by 10%, start out with 0%, or 2%, or 4%. Leave yourself room to negotiate some more. Who knows - you may get it for a 2% reduction. You might have to go all the way to 10%, but often you won't. A little stubbornness pays big dividends.

Get Something in Return for Your Added Value

What if you discover that the buyer wants to be able to track his expenditures for your products or services in a way that is far more detailed and complex than is standard for your industry? What if your account tracking system is set up in a way that you can provide that information at essentially no cost to you? Often the salesperson's overwhelming temptation is to jump in and say, "Oh, we can do that. That's no problem." Before you do, however, think about your options. You could throw it in as part of the package and try to build good will. Or you could take a deep breath and try something like, "That's a difficult problem that will require some effort on our part, but it's doable."

In the second case, without committing, you've told the buyer it is possible. You may not be able to get him to pay extra for it but you may be able to use it as a bargaining chip in resisting price concessions. Which way you choose to go will depend on who your customer is and on the situation. However, you do have options.

Sell and Negotiate Simultaneously

Think of selling and negotiating as two sides of the same coin. Sometimes one side is face up, and sometimes the other side, but they are always both there. This is particularly true in your earliest contacts with the buyer. The face the buyer sees is that of a salesperson demonstrating features and benefits. The hidden face is that of a negotiator probing and seeking out information that may be invaluable later should issues like price, terms, quality, delivery, etc. have to be negotiated.

Be Patient

Finally, and most important, be patient. Sales is a high energy, fast moving business. Patience is one commodity that is in relatively short supply, but if you're impatient in a negotiation, you'll lose your shirt. If I'm negotiating with you and I know that you're impatient, I will hold out just a little longer, no matter how desperate I am to make a deal with you. As long as I know you're in a hurry, I'll wait.

So be patient. Take the time that you need, don't rush to give in, don't show your anxiety, stay cool and don't panic. Negotiation is a process and a game. Use the process and play the game. You'll be astonished at the difference that it makes!

(c) Michael Schatzki - 2004. All rights reserved.

About The Author

Michael Schatzki is a master negotiator who, for over 20 years, has provided sales negotiation training seminars and coaching for thousands of people in the U.S. and globally. More than 75% of Mike's programs are for satisfied, repeat customers. The Negotiation Dynamics(r) system really works. Check out all of Mike's articles at http://www.NegotiationDynamics.com. Mike can be reached at (888) 766-3530.

Mike@NegotiationDynamics.com

---

Barter and Its Benefits

What is Barter? Barter involves 2 parties. Each party wants... Read More

Cross Cultural Negotiations

Cross cultural negotiation is one of many specialized areas within... Read More

The Art of Haggling

Did you know that at one time in this country... Read More

Better Internal Proposals

A colleague of mine has a problem. We belong to... Read More

Negotiating Technology Contracts

Have you ever tried to negotiate a deal for software,... Read More

Communicating Across Time Horizons

There was a time in my life when I sold... Read More

Win-Win Power Negotiating

Let's talk about win-win negotiating. Instead of trying to dominate... Read More

Negotiate to Your Advantage

The hardest and most important part of any negotiation is... Read More

Do You Want a Paycheck or a Passion? 10 Qualities Managers are Looking for in Hiring You

Based upon my research of over 300 managers in the... Read More

Where to FIND the BEST Employees --

Obviously, you might logically say, "that is good!" You would... Read More

National and Cultural Negotiation Style

Cultural and national negotiation styles reflect communication behaviors and the... Read More

So Whats Your Argument?

Arguments aren't always bad things. Sometimes They're used to convince... Read More

Are You Scaring Away Potential Customers?

When you are trying to make a sale and ask... Read More

Negotiating: Forcing vs Compromising

Forcing is a hard-nosed approach that makes heavy demands from... Read More

Secrets of the Trade Revealed: Bartering for Business

In its simplest form, bartering involves an equal trade. One... Read More

Neogtiation: How to be Right Without Making Other People Wrong

What exactly are we trying to accomplish by proving to... Read More

Negotiations: The Art, Science, & Sport of Online Deals

Negotiations can seem as complex as physics, and in fact,... Read More

How To Deal With A Complainer

How To Deal With A ComplainerA Complainer Is Characterized by:1.... Read More

Negotiate Your Way to a Better Salary

1. Be persuasive: It's hard to force your boss to... Read More

Four Ways To Work Out Business Disputes

Business owners have four options to resolve disputes with partners,... Read More

The Six Rs for Changing MInds and Overcoming Resistance

This article borrows from Howard Gardner's book, "Changing Minds" (2004).... Read More

Can a Service Be a Commodity

Well Enron dealt with this a little for instance an... Read More

How To Make An Inflexible Bureaucrat See You As A Person

Inflexible Bureaucrats Are Characterized by:1. Cares little about your happiness... Read More

How to Change Somebody?s Mind

Believe me, it's not easy! And sometimes, it doesn't work... Read More

How to Negotiate Effectively

You may be thinking, "Gary, I am a mom, housewife,... Read More

Guidelines for Ambassador Appointments

Ambassadors to other countries are a vital part of international... Read More

The Ultimate Truth in Persuasion

OK, so you want to improve your persuasion power right?Why?... Read More

How Barter Can Help Your Business Online or Offline

How Barter Can Help Your BusinessBarter trade is a powerful... Read More

Just Ask!

Ask and you shall receive & knock and it shall... Read More

Negotiating Tactics: Don?t Let ?Good Guy ? Bad Guy? Control the Sales Negotiation

Counter one of the classic negotiating gambits by addressing it... Read More

Games are a Reflection of Behavior

You are standing on a small stage yelling, "What's the... Read More

Embarrassed To Discuss Your Prices? Seven Common Reasons We Cant Talk About Them

Last week, a wonderfully-skilled electrician installed a new light fixture... Read More

Negotiating Skills Will Get You Ahead

Negotiating skills can help you manage lots of different kinds... Read More