Jonathan Farrington’s Blog

A “Win-Win” negotiation can only be achieved if both parties are prepared to concede some of their ‘would like to have’s’ in favour of preserving their ‘must have’s’. The way concessions are handled is a vitally important negotiating skill and can have a huge impact on the final result. Below are ten tried and tested tactics to help you.

1. Discover and agree all the points for negotiation before it begins. Ensure that for each one of these points you have identified whether it is a fixed or a variable point from your perspective. (Variable means that there is some flexibility of movement.) If you have a separate meeting scheduled for your negotiation, it’s a good practice to send out you points for negotiation prior to your meeting. This ensures that both parties aren’t presented with any sudden surprises.

2. Increase the number of points for negotiation (if possible) because you increase the opportunities for a trade. If you only negotiate on price you are potentially setting the stage for a Win-Lose outcome. People very rarely buy on price alone, which is why it’s important to do a thorough fact find at the beginning of the sales process, to flush out the buyer’s list of requirements.

3. Always trade concessions (as opposed to giving them away). This means that for each point where you agree to a concession, you’ll want the buyer to make a concession in return. If you give a concession without requesting a return concession then you’ll be unlikely to get one afterwards. Therefore, it helps to preface your concession with the words ‘what if’. For example, “What if I offered you this (specify concession), what could you offer me in return?” As soon as you begin the process of trading concessions you are creating a frame for agreement, this underpins the belief that together you can reach an overall agreement.

4. Make concessions in small incremental amounts, gradually. If you offer up a large concession too quickly you could create the perception that ‘you loaded the deal’. It’s always best to aim to hold something in reserve for those buyers that are tougher with their negotiations, and present every concession as if it has huge value to you. When presenting concessions use features and benefits to really highlight the value that you are offering.

5. If the price changes, change the deal. This can help to maintain your credibility and justifies the reason for the price change. If you simply comply with a request to lower your prices then you imply that you were asking too much originally.

6. Use a calculator to quantify the impact of price decreases overall. For example, a couple of cents or euros on a large deal could equate to a huge amount over a twelve month period. This can be useful to show just how much you are offering in the long term. It’s a good idea to calculate the long-term value of every concession you are offering.

7. It can be disadvantageous to have your opening offer completely disregarded so encourage the buyer to go first with their offer if you can. Sometimes the buyer offers more than the sales person was prepared to accept, yet avoids having to do so because they kept quiet and let the seller go first. It also provides you with the opportunity to evaluate their opening stance in terms of the possibility of getting an overall result. If their opening offer is ridiculously low then they may not be taking the negotiation as seriously as you.

8. Make each concession really count. People have a tendency to appreciate what they have worked hard to get. If the winning of a concession is too easy then you are depriving the buyer of some emotional satisfaction. This is also an ideal time to request the opportunity to consult with another individual within your organisation. If the buyer sees that their requested concession appears to be outside of your own authority limits, then this helps to build the case that they have negotiated well.

9. Be creative when generating concessions. Work with the other party to generate a variety of options and brainstorm each option neutrally. You’ll be amazed at how many good ideas are created when this process is allowed to occur. You can help this process prior to the negotiation by seeking input and ideas from other people in your organisation. Often, getting some alternative suggestions from people who are not involved in the deal, can provide you with some refreshing new insights.

10. Leave price until last so you build a sense of agreement between both parties. Aim to discover what the buyer really needs when they request a particular price. At the end of a negotiation, the buyer has made an investment of time and has demonstrated a desire to do business with you by making concessions. Therefore, to reach a stalemate at this final stage will be viewed as a waste of their time. Before tackling the price, summarise all the concessions that you have made and where possible attach a value to them. This amount can look even more impressive if you total this over a twelve month period. Always have a list of the buyers agreed requirements in front of you so that you can show the buyer just how many of them  you have already met.

Today’s News: The Top Sales Experts team have been approached by a publisher to put Volumes One and Two, plus Volume Three, due our at Christmas, into hardback, just in time for the festive period and I think we will do it - providing we can gather in all the copy in time, so as I always say, watch this space: Volume Two launched last week, as you know and has already been downloaded 1000 times - fantastic. If you haven’t read it yet, please see the banner in the left hand column.

Tomorrow: One of the leading networking experts in the world if not the leading authority on the subject, my good friend Andrea Nierenberg makes a welcome return to the JF Guest Author Spot - so if you want to learn more about winning business contacts and influencing people, do tune in.

JF Guest Author Spot

“Are You A Spoiled Brat Negotiator?” by Kim Duke

I was pushing my chocolate-laden shopping cart at the grocery store the other day (yes – Divas grocery shop!) and saw a power negotiator in action.

This person was persistent, passionate and absolutely on purpose!

They were also less than 4 feet high.

Yeah -you guessed it lady – I saw a 6 year old girl with pig-tails seriously work her mother for a different kind of yogurt.

I know – yogurt? (if it had been me – it would have been sugar cereal or a chocolate bar all the way!)

You got it – this little blonde, blue-eyed dynamo was determined she wasn’t going to have to eat the stuff out of the “big” plastic, boring container. She wanted the stuff in the colorful tubes instead!

I kid you not – this is what I heard her say…(this child should be teaching sales)

“But Mom - this kind tastes better and I always eat it at school.”

BINGO!

Mom folded like a taco and a little girl got her box of tube yogurt. And a Sales Diva received some inspiration for a column!

Are You A Spoiled Brat At Negotiating?

This little girl absolutely “Wowed” me with her negotiating skills because she inadvertently said what her mother needed to hear. Benefit. Benefit. Benefit.

So she actually wasn’t a spoiled brat negotiator at all.

But YOU probably are.

One of the biggest reasons most people SUCK at negotiating is because it’s all about ME, ME, ME!

Remember – a successful negotiation is not where you have STICKY FINGERS.

Follow these 5 Bossy Sales Diva Rules Instead:

1. Stay calm. If you’re stamping your feet in the sandbox about what you want and lose all sense of logic…well then – you have just become vulnerable in the world of negotiating. And you’re about to lose your favorite toy. (in my world – this means MONEY)

2. Pouting doesn’t work. If your potential customer isn’t seeing the value of what you offer – that’s YOUR ISSUE and not theirs. No one likes a defensive cry-baby.

3. Share Your Toys. A successful negotiation is where both parties feel like it was a Win-Win. No one should feel they were “taken for a merry-go-round-ride”.

4. Play With The Right People. Are you really busy chasing people who have no need for your services? You’re going to get a lot of rejection. Be super clear on who your target audience is.

5. Don’t Reward Bad Behavior. Hey – stop giving discounts to people who always want the cheapest price or who only want to buy something small. Reward your loyal customers, or people who are making a large commitment of time and investment in you.

When I was a kid, my sister’s favorite expression to me was “You’re not the BOSS of me!”

She was right.

The only person who is THE BOSS OF YOU – IS YOU.

It’s time you grew up and realized that you have VALUE and you don’t have to be the cheapest kid on the block. You don’t need everyone to like you – you just need more of the kinds who do.

So there.

Kim Duke, The Sales Diva, provides savvy, sassy sales training for women small biz owners and entrepreneurs. Kim works with clients internationally, showing them The Sales Diva secrets to success! Sign up for her saucy and smart FREE e-zine and receive her FREE Bonus Report “The 5 Biggest Sales Mistakes Women Make” at www.salesdivas.com

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The JF Guest Author Spot 

“4 Tips - Defending Price & Selling More In Competitive Markets” by Gavin Ingham    
  
 Once upon a time, in a far off land there lived a happy salesperson that had products and services that were new and fresh. He had no competition and he could easily stay ahead of the marketplace. The clients loved his visits because he could educate and entertain them and they were always enthralled by his amazing new solutions to their problems and challenges…

Did this mythical, unicorn of a salesperson ever exist? I doubt it!

I agree that the marketplace is maybe quicker and faster than it ever was but sales is all about competition.

If you have a good idea, someone will nick it!

You are very lucky that you may have had some time in that mythical, fantasy land of being the only magazine in the marketplace but it was never going to last… The aim of the game now is to help your clients to understand that you are bigger, better and more relevant for their needs than your competitors.

Here are some tips to sell more…

1. Stop trying to convince them and start “knowing” that you’re the best.

Sit down and think about all of the services that you have to offer that are better than those of your competitors. Clients don’t like desperate salespeople. You need to “act as if” you are the only company worth dealing with in the marketplace. Do not be arrogant and remember… perception is projection.

2. Remember that your clients probably don’t really think that you are all the same.

But they know by telling you this they put you on the back foot. Most clients think that they have the upper hand and that we are all desperate to do business with them at any cost. Don’t be so eager, take your time and plan your responses to start to redress this balance.

3. Plan and learn objection handles for common objections.

Preparation is key to sales. The only way you will get better is by thinking through situations and asking yourself the question, “How can I deal with that better next time?”

With your specific objection…

“We already advertise in ABC magazine and it is distributed in the same way as yours.”

What about something like…

“That’s fine I’m not asking you to change now, merely have a look at our services to see how they might complement your existing services.”

Or…

“That’s fine, business is built on relationships. At this stage, all I want to do is find out a little more about you and your business and see how we might be able to benefit you in the future.”

Or even…

“That’s great. I’m pleased you realise the importance to your business of advertising in this medium however our distribution is not the same as theirs. I’m not asking you to change now, merely have a look at our services and see how they might complement your business objectives in the future. Tell me, how often do you advertise with…?”

Remember - the objective is to get them talking, find out why they are using the service, discover their objectives, understand how successfully they are meeting those objectives and then offer something better and more relevant to them.

For more on objection handling have a look at my book Objections! Objections! Objections! available on www.amazon.co.uk, ISBN 1-905225-05-9.

4. Perception is everything.

Even if your services are exactly the same as your clients (or indeed are not as good!) it is whether the client thinks they are or aren’t that matters. This means that you can ALWAYS create the perception that your services are more relevant to them.

On your second point, you are right in your strategy. There is no-one more destined for failure than a one-trick-salesman. You need to be approaching both new customers to the service and customers of your clients. As you have rightly pointed out, these two groups of customers will often require different sales strategies.

For the potential clients who don’t advertise at present make sure that you keep the pressure off to start with. They will more than likely have been “sold” to before so when they object that they “have looked before and it’s not for them” objection handle with a gentle reframe…

“That’s fine. I’m not asking you to buy now merely have a look at how our services might complement your existing advertising strategies. Tell me, how do you currently…?”

Then get interested in their current situation, how they advertise, what their objectives are and how you might be able to help them now or in the future.

Let’s face it - until you ask and listen you’re not going to know whether you can help them or not.

Best of luck and remember to sell with passion.

For the last 10 years, Gavin Ingham has been helping sales people to explode their sales performance by turning self-doubt, fear and lack of motivation into self-belief, confidence and action. Visit http://www.gaviningham.net  now to join Gavin’s free monthly newsletter packed full of sales secrets, strategies and tactics.

The Wall Street Journal calls my very good friend, Andrea Nierenberg “a networking success story.” She is a master at helping individuals and companies build their businesses by improving relationships. Critical to sales success are well-honed communication skills. Andrea shares her list of eight essential communication skills. She suggests they are common sense but not common practice. Andrea shares what she feels is THE most important communication skill with my buddy Clayton Shold of Salesopedia. You might be surprised at her suggestions on how you can stand out from your competitors. All this in less than ten minutes! You can catch it here