Information is Power in Sales Negotiation

10 Practical Steps For The Sales Negotiation Process

A successful sales consultant negotiates and influences business outcomes everyday. Daily situations occur that require at minimum, a rudimentary understanding of negotiating skills.

Business is a process of negotiating and influencing outcomes everyday. Negotiation is a premeditated process, not an event.

One of the most strategic tools that you can put into your arsenal is a process for negotiation in your organization. Almost all firms have a sales process in place, but the real question is do you have a process in place for negotiation that creates revenue.

Try these 10 methods to increase your sales closing success:

1. Prepare . . . Prepare . . . Prepare - Don't shoot from the hip! Negotiation is the process of searching for an agreement that satisfies various parties with a "win-win" situation.
   
   A smart negotiator learns to anticipate what the other party wants.
   
   Be quick to adapt to changing situations without losing sight of your objective. Learn to be wisely cooperative. Use a structured negotiation process to sell more.
   
   Does your organization have a structured negotiation process?
   
   
2. Focus on business pain, not the product or service.
   
   Who needs the sale more - the buyer or the seller? If the prospect decides to do nothing, what will it cost them? What does the prospect really want?
   
   Remember, nothing has value unless someone wants it.
   
   What are the most important interests of the prospect? Why has the prospect taken the identified position?
   
   Strive to understand the prospect's perceptions and style of negotiation.
   
   What are the personalities of the individuals involved in the negotiation?
   
   
3. Understand the power of language - words are visual brochures!
   
   Learn to persuade rather than coerce, and you will become influential in changing the beliefs of your prospect. Reframe information with a question . . . "If we succeed in resolving this problem . . . what would . . . ?"
   
   Develop "if" statements such as "if I get this . . . will you agree to . . . ?"
   
   Learn to respond rather than react and shift from a pure bargaining mode to one of collaborative negotiation.
   
   
4. Learn to listen like a student.
   
   This is probably the most vital tool that you can use in the negotiating process. Focus on what the prospect is saying, the words as well as the underlying meaning of those words.
   
   Active listening can change the rules of the game! Focus on shared viewpoints as a way of building common ground. Drill in on WHAT the prospect is saying rather than shaping your response.
   
   Active listening will exponentially increase your skills as a strong negotiator because you will learn to focus on the prospect's opinions as well as focus on the process and strategy to use.
   
   
5. Position your product or service as unique.
   
   If you have adequately researched the prospect and asked the right types of questions, you should be able to avoid some of the landmines encountered in the sales process.
   
   Remember, you are a specialist and your product or service fixes the pain.
   
   If you diagnose accurately, your prospect will be more apt to listen to you, particularly as he/she feels that you have listened AND understood.
   
   
6. Use timing to your advantage.
   
   How mission critical is your product or service to the prospect? Can your competitors meet the same structured time deadline as your firm? Can you use this as leverage?
   
   If the buyer is under a time deadline . . . and you know it, you have the negotiating strength.
   
   A great deal of acting goes on in the negotiating process; make sure you are savvy to the bluff used by the prospect. Buyers have learned to keep you guessing about their real needs and priorities.
   
   Remember, use the process to play the game.
   
   
7. Try to negotiate small issues.
   
   All prospects want to feel they are receiving a fair deal. It is much easier to negotiate the big deal variables in your favor after the prospect has won some "important" concessions from you.
   
   
8. Learn to manage the relationship with the prospect.
   
   What is the history of relationships with the prospect's firm? How strong is your relationship with this person? How involved is the prospect in the decision-making process? Are they moving forward in the sales cycle steps with you? Are they committing to actions steps to show they are qualified?
   
   
9. Negotiating is a life skill . . . Sharpen the sale by learning.
   
   Become a student of sales and the negotiation process, and learn how it directly relates to the sales process.
   
   
10. Be willing to walk away.
    
    Know what a "win" means to the revenue of your organization. Don't be willing to drop below your bottom line.

Selling is a premeditated sport. Practice to eliminate error, but be prepared to adjust your plan on the day of the game.

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