Often, people will prepare their positions effectively before going into a negotiation, but find that they haven’t determined adequately enough what the other party’s perspective will be, and so create problems for themselves in the process.

Here are some strong negotiating skills that will help you progress quickly and effectively through the process:

Make sure you keep the person and the negotiating situation separate in your mind. Remember that everyone will have a different perception of the situation, according to their viewpoint. Discuss these differences in relation to how the negotiation is going.

Understand the reasons why the other party are taking the position that they are. Request reasons why they are taking that position, if you feel it needs explaining. This gives you a clearer picture of their rationale in taking their position.

Listen very carefully to their situation and view them as a partner in problem-solving, rather than an adversary who must be beaten. Recap on their position, and get full clarity by paraphrasing or summarising their ideas in full, so they see you can understand their position.

Point out the concerns, problems or frustrations you see from your perspective. This will allow the other party to recognise why their position has to be negotiable.

Don’t assume there is only one solution to any negotiation. If they are wanting a price reduction, for instance, maybe you can negotiate on payment terms or discount for further agreed orders, rather than just concentrating on price.

Think of your BATNA, or best alternative to a negotiated agreement. Is there something else you might be able to agree to rather than achieving a stalemate in the process?

Again, if they want a change in the parameters of the negotiation, find out the reasons, rather than just going down the line of least resistance.

All movement should be a trade, rather than a concession. If the other party sees you simply giving way on positions, they may try for more movement, and you may end up in a lose-win position. 

Be prepared to walk away from the negotiation if it is clear you cannot match their demands. It is better to stop, re-assess the situation and return later than be drawn into giving away more than you had prepared for.

If a negotiated agreement is reached, ensure you summarise and recap on the positions and interests that have been reached, and put all agreements in writing, so there is no ambiguity in what you have decided.

These strong negotiating skills  should help you to achieve your goals and give you confidence in any situation where needs and wants are seen differently from both sides.

Happy Selling!

Sean

Sean McPheat
The UK’s #1 Authority On Modern Day Selling
MTD Sales Training

Have you downloaded my latest report “The Sales Person’s Crisis”? Over 10,000 sales pros have.

Click on the image below to find out why you’re very existence as a sales person is in doubt…

Of all the skills you probably need to develop most as a successful salesperson, but actually practice least, is the skill and art of negotiating to a collaborative conclusion. This may be because you think it has to be done in front of the client, and any practice would never prepare you for the real situation.

But you can prepare yourself effectively to improve your negotiation skills by concentrating on some salient facts:

Firstly, what are my realistic expectations during the negotiations? Set yourself LIMITS. These are (L) things you’d Like to achieve, (I) things you Intend to achieve and (M) levels you must not go beyond. If you can achieve a result between these three positions, then IT’S a deal! It gives you room to move when you are working with the client on positions, without having to worry about giving things away.

You want to enter the negotiation with equal power. One way you can do this is by knowing what the competition are offering. If your client tells you what offers they’ve had, make sure you have benefits that offer more value than they could get elsewhere.

Ensure you approach the negotiation from a position of collaboration. This means you will both mutually succeed by adopting your solutions.

Make yourself different from the competition by being in a unique position to assist your client. What can you offer in the long-term relationship that no-one else can?

Prepare for your client to try to negotiate from a position of power. It’s known as win-lose, and it often happens when you look desperate for the deal. If you are asked to move positions during the negotiation, make sure it’s a trade rather than a concession. If you give away everything, you won’t be in a strong position to help the client in the future.

Remember, special deals or individual arrangements with clients do have a habit of biting you where it hurts, especially if you are negotiating again in the future.

If they come back with demands at the last minute, look for the real reasons behind it, and make it so that you collaborate with them, rather than give in to these seemingly trivial demands.

If you give in, what does that do to your credibility as a company and as an individual? It means that, at a subliminal level, the client can’t trust you, because you were going to agree terms at one point and then you move easily to another. They are thinking ‘what else could I have got?’

So, if you can prepare yourself effectively before the negotiation, it will give you the confidence and credibility to improve your negotiation skills and approach it from a position of power rather than weakness. Practice with a colleague. Write down objections you might encounter. Be vigilant as to the tactics the client might use on you. And determine that your client will benefit enormously by having you serve them in the future.

Happy Selling!

Sean

Sean McPheat
The UK’s #1 Authority On Modern Day Selling
MTD Sales Training

Have you downloaded my latest report “The Sales Person’s Crisis”? Over 10,000 sales pros have.

Click on the image below to find out why you’re very existence as a sales person is in doubt…

Just before Christmas, I received a really good question from Stuart who asked:

“I am a manufacturer sales person and my products are sold through distribution to customers, who then convert them into the finished product for their customer – the eventually end users.

We are going through a process of trying to get our product spec’d by the eventually end user. What is the best way of doing this? We are trying to communicate with the end user themselves, but it is having limited success. How do I get an end user to say that product x must be made from material supplied by manufacturer A or I am not going to buy it?”

Great question Stuart, what you need is to offer an ethical bribe!

If you can get hold of the contact details of the end users direct then you need to give them an ethical bribe to help you! You can do this by offering them something in return for helping you with your market research. It’s got to be something of real value though. You could approach one of your distributors and do a deal with them to offer x% off their next purchase or you could give them something.

You need to work out what this information will be worth to you in the long run. If it’s worth thousands then you can “give away” some real juicy gifts for the help like weekend’s away etc.

I once received 3 months worth of Fosters for helping them with some “market research” once!

But you need to position it as market research and you need to include all different types of questions to really profile their needs.

Now if you have not got any contact details of the end users then you need to do the same process but with your distributors.

Information is a valuable commodity. Work out what the info is worth to you in the long run. It could be worth thousands or tens of thousands if you can receive exactly the answers you need. And then get the good ole ethical bribe out in exchange for “market research”

Happy selling!

Sean

Sean McPheat
Managing Director
MTD Sales Training

Telephone: 0800 849 6732

Improve your SALES SKILLS Click by signing up for our FREE SALES TIPS

Tips For Negotiating

I get asked a lot for my top tips for negotiating and it all depends on what you are negotiating for.

Sometimes a negotiation can be based on the price that your client wants to pay and what you want them to pay!

Sometimes it’s for the products and services that you both want or don’t want if you get my drift!

It all depends on the circumstances.

So, here are some top tips for negotiating:

1. Aim High

Let me put it this way. Your price will usually only go in one direction and that’s not up! So aim high! At some stage you’ll probably be required to make a concession here or there so you need something to “play with”.

2. Don’t give away too much too early on

Too many sales people sell the family jewels at the first attempt. If your product is £5,000 and you agree to sell it to me for £3,500 then what does it tell me? Well, unless what you got out of the deal was valuable too you’ve just tried to “do me” by trying to get me to pay an extra £1,500 because you dropped your very quickly! Discount in stages.

3. Lose the EGO

You want the best outcome for both parties. Not for YOU! Not so you lose face in front of your
prospects or peers. A lot of “no deals” result because the 2 parties are too focused on winning and looking good rather than having the right outcome.

4. When is it time to walk away

Do you know when it’s the right time to walk away from the deal? You need to have this in mind before you start the negotiation. When is it time to say “No deal”

5. Planning!

Go into the negotiation with some primary and secondary objectives. What’s your ideal scenario? What would you ultimately want from this in the ideal world? What’s the least you would be willing to accept? You need to know these because in the heat of the negotiation you could get swept away if the other party knows what they are doing!

I hope those quick tips for negotiating help?

At the end of the day I always strive for WIN WIN negotiations where each party thinks they got the best end of the deal. If you can do this then you can really build long term profitable relationships with your prospects and clients.

Happy negotiating!

Sean

Sean McPheat
Managing Director
MTD Sales Training

Telephone:
0800 849 6732

Have you downloaded my latest report yet? “The Sales Person’s Crisis” has been downloaded by over 10,000 sales pros and entrepreneurs. Don’t miss this unique report that lifts the lid on modern day selling!

Click on the image below to find out why you’re very existence as a sales person is in doubt…