Start the bargaining process off right & read our article on sales negotiation tips.
Firstly, most sales people in a negotiation of any type generally start with a clear idea of what they want and of course have answers in advance to the main issues involved. Yet for many, that is where the preparation starts… and unfortunately ends. The result is that, with no “Plan B”, the only strategy is to use what they may feel is a logical argument to persuade the other party to come round to their point of view – unfortunately logic isn’t always that persuasive!
Skilled sales people, by contrast, not only determine their objectives and the main issues involved in advance, but they crucially plan how they will persuade the other party to agree to their terms of sale, more especially if they anticipate that some negative objections will be raised. The key to this is to identify the possible bargaining points and any sales objections in advance. For instance, In seeking a salary increase you may be prepared to accept higher targets or broad work responsibility.
Change your behaviour, and see improved results!
Appropriate behaviour is at least as important as good planning and tactics. Research shows that over 15% of a sales persons communication centres on feelings, which is a pre-indicator of sharing information & trust which is aimed at encouraging and securing mutually satisfying sales agreements. Similarly, successful sales people ask more open-ended questions and constantly test their understanding of the sales agreement being reached. They also seek constant verification from their customers throughout the en Thus they entice more information and uncover potential weaknesses in the other’s bargaining position. In this way, “win-win” outcomes are not just a pious hope but an achievable and pragmatic goal.
Top 10 Negotiation Tips
1. Don’t just plan what you want to achieve. Rather, plan how you will persuade the other party to agree to it.
2. Conduct an analysis of yours (and the other party’s) strengths and weaknesses. Then plan how to use your strengths and manage your weaknesses.
3. Set both an upper limit and a bottom line for what you want to achieve on each issue. This will help ensure your don’t push the other party too far and don’t give away more than you can afford to lose.
4. Work out the full cost of any concession before you make it.
5. Set a wide range of options for each issue you have to negotiate in order to give yourself maximum flexibility.
6. Plan questions to explore the other party’s position in terms of what they want, why they want it, and to explore possible weaknesses in their position.
7. Test all agreements very carefully, then summarise them so there is no doubt about what has been agreed.
8. Don’t dilute your arguments by giving too many reasons to support your position. Find one rock solid reason and stick to it.
9. Expect low levels of reaction from the other party and regularly check how they feel about the negotiation.
10. Don’t make immediate counter-offers when they put something on the table, but explore each proposal with care before responding.