Tuesday, January 26, 2010

Give & Take

from my email:

Daily Sales Tip: Good Salespeople Are Good Negotiators

Every salesperson, sooner or later, will find himself or herself in a situation that will require at least a rudimentary understanding of negotiating skills. Before you say, "I can't control pricing" -- think about delivery schedules, warranty extensions, terms or anything else you do have some control over either directly or indirectly.

Volumes have been written about this essential skill. However, like lots of other sales-related competencies, sometimes more is less. What does that mean? Simply this - let's take a hard look at a solid half-dozen of the most essential principles or skills necessary for successful negotiation.

-- Be prepared to walk away. In the absence of this most critical commitment, it will be easy for you to concede too much. The bottom line here is this: If you're not willing to walk away from the negotiation because you are not emotionally able to say "that's ok, I ll find another, more acceptable situation tomorrow," you'll lose. I guarantee it.

-- Hedge on the first offer. Negotiators call this "flinching" at the first offer. That simply means show some surprise, dissatisfaction or uncomfortability at the first offer. Take it and you probably will leave lots of money on the table.

-- Don't be the first one to offer to "split the difference" or be willing to accept it. This is usually a short-cut way to get to the figure or terms your adversary is after rather quickly. It, too, is a tactic that really leaves neither side winning and one or both feeling that the "best deal" was not struck.

-- Slow the negotiation down. There is an interesting truth that people usually want what they can't have. Be willing to find justifiable reasons to let things sit. Don't rush into anything or agree to something you'll have trouble living with later.

-- Always try to negotiate small issues that, cumulatively, make a significant difference in the other party's ability to utilize your product or service more efficiently, easily or most effectively. As an absolute last resort, tinker with your price! Always remember the exceedingly poor perception that price reduction gives. Consider changing terms - not price!

-- Keep your emotions out of the process. Anger or sentimentality can lead to fuzzy thinking, flawed decisions and eventual regrets. Regrets over being too aggressive (or not aggressive enough), giving in too much (or not enough), striking a bad deal (or even one where you feel that you had gained too much of an upper hand). In any of these cases, it can lead to something that could have been avoided with a cooler, calmer demeanor.

Source: Sales trainer/consultant Bill Brooks (www.thebrooksgroup.com)

Sphere: Related Content

No comments: