How many times have you heard:
"You've got to drop your price by 10% or we will have no choice but to
go with your competition."
"You will have to make an exception to your policy if you want our
business."
"I know that you have good quality and service, but so do your
competitors. What we need to focus on here is your pricing."
"I agree that those special services you keep bringing up would be
nice, but we simply don't have the funds to purchase them. Could you
include them at no additional cost?
Every time you hear a statements like these, you're in the middle of a
difficult sales negotiation. How you handle that negotiation will
determine whether or not you close the sale and how profitable that sale
will be. In order to give you a real edge in your sales negotiations, I
have listed below some key points taken from my Negotiation Dynamics®
seminar.
Don't Believe Everything You See and Hear
Part of a good salesperson's skill is to learn to read people and
situations very quickly. However, when it gets down to negotiating, you
have to take everything you see and hear with a grain of salt. Buyers
are good negotiators, and thus they are good actors. You may be the
only person who has what she needs, but everything she does and says,
from body language to the words she uses, will be designed to lead you
to believe that unless she gets an extra 10% off, she's going with the
competition. Be skeptical. Be suspicious. Test, probe, and see what
happens.
Don't Offer Your Bottom Line Early in the Negotiation
How many times have you been asked to "give me your best price"? And
have you ever given your best price only to discover that the buyer
still wanted more? You have to play the game. It's expected. If you
could drop your price by 10%, start out with 0%, or 2%, or 4%. Leave
yourself room to negotiate some more. Who knows - you may get it for a
2% reduction. You might have to go all the way to 10%, but often you
won't. A little stubbornness pays big dividends.
Get Something in Return for Your Added Value
What if you discover that the buyer wants to be able to track his
expenditures for your products or services in a way that is far more
detailed and complex than is standard for your industry? And what if
your account tracking system is set up in a way that you can provide
that information at essentially no cost to you? Often the salesperson's
overwhelming temptation is to jump in a say, "Oh, we can do that.
That's no problem." Before you do, however, think about your options.
You could throw it in as part of the package and try to build good
will. Or you could take a deep breath and try something like, "That's
a difficult problem that will require some effort on our part, but it's
doable.". In the second case, you've told the buyer you definitely
could do it, but you have not yet agreed to do it. You may not be able
to get him to pay extra for it, but you may be able use it as a
bargaining chip in resisting price concessions. Which way you choose
to go will depend on who your customer is and on the situation.
However, you do have options.
Sell and Negotiate Simultaneously
Think of selling and negotiating as two sides of the same coin.
Sometimes one side is face up, and sometimes the other side, but they
are always both there. This is particularly true in your earliest
contacts with the buyer. The face the buyer sees is that of a
salesperson demonstrating features and benefits. The hidden face is
that of a negotiator probing and seeking out information that may be
invaluable later should issues like price, terms, quality, delivery,
etc. have to be negotiated.
Be Patient
Finally, and most important, be patient. Sales is a high energy, fast
moving business. Patience is one commodity that is in relatively short
supply, but if you're impatient in a negotiation, you'll lose your
shirt. If I'm negotiating with you and I know that you're impatient, I
will hold out just a little longer, no matter how desperate I am to make
a deal with you. As long as I know you're in a hurry, I'll wait. So be
patient. Take the time that you need, don't rush to give in, don't show
your anxiety, stay cool and don't panic. Negotiation is a process and a
game. Use the process and play the game. You'll be astonished at the
difference that it makes!
copyright 1997 - Michael Schatzki
A Master Negotiator
Michael Schatzki is a master negotiator whose high energy,
content-packed Negotiation Dynamics® keynotes, breakout
sessions and seminars draw rave reviews.
Memorable and Entertaining
His Negotiation Dynamics® system offers participants a
powerful set of tools that will give them a critical edge in
organizing and structuring all of their negotiations. His stories,
anecdotes and sense of humor bring to life his powerful
Negotiation Dynamics® system.
Fully Customized
Mike does his homework. He customizes every program, from a 45 minute keynote to a
two day seminar. He learns about your business or industry and tailors the program to
precisely fit the needs of his listeners. The result is that audiences take away ideas,
concepts and approaches that they can use immediately to negotiate the best possible
agreements.
It Works
More than 75% of Mike's programs are for satisfied repeat customers who find him to be
a dynamic, entertaining speaker and trainer. The Negotiation Dynamics® system really
works!
Phone us at:
(888) 766-3530
Fax us at:
(908) 766-5125
E-mail us at:
MikeSchatzki@NegotiationDynamics.com
Visit our Web site:
www.NegotiationDynamics.com
Write us at:
Negotiation Dynamics
79 Page Hill Road
Far Hills, NJ 07931
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