to any of them, says Mike H. Covol, general
manager for U.S. operations at Bitam, a business intelligence and business process management solutions provider, with U.S. offices in
Atlanta. “Make sure that you understand
the whole picture of issues, prioritize them,
and keep the most difficult ones to the end,”
he says.
Above all, listen intently and take detailed
notes so you’ll have a record of your conversation and can follow up if necessary.
GETTING THE BEST PRICE
While many people think of negotiating as a
step done at the end of the sales process, it’s
not a one-time event. “Negotiation begins early,
and [salespeople] should set the tone for how
they’ll negotiate at the start of the sales cycle,”
says Tim Sullivan, director of innovation at
Sales Performance International.
“Don’t make concessions early in the sales
cycle and be ready to ask for a quid pro quo
when your customer asks you for something,”
Sullivan continues. “For example, identify
points that provide value to you, such as additional contacts within their company, access to
people in powerful positions, or information
that will help you make the sale. Exchange
those for any concessions they ask for.”
To get the best price possible, proactively set
the table, says Darin Sanders, national sales
manager for Novacoast, a Santa Barbara, Calif.-based IT services company with 85 employees
and offices in 14 states.
“Let’s say you give the customer a project
estimate that totals $50,000, and they come
back to say it’s much more than they were expecting” says Sanders. “You want to ask them
a follow-up question—such as the amount they
were thinking of—but also set the range for
their response by answering the question before they do.”
“If they say $50,000 is too much, for example, ask them if they were thinking of something like $48,000,” Sanders continues. “The
minute they tell you something is too much,
ask them what they had in mind, but also make
sure to plant the seed of an answer that’s just
a small differential from the proposal. That way,
they’ll be less likely to come back with a figure
like $25,000. Customers usually want to come
back with half your proposal amount.”
WHEN YOU
DIDN’T GET IT
RIGHT THE
FIRST TIME
GOOD NEGOTIATORS KNOW
WHEN TO RENEGOTIATE. This
is especially important in the
fast-paced technology industry, in which market changes
may make some products or
services obsolete before you
even have a chance to implement them.
“Renegotiating is inevitable,”
says Marc Freeman, negotia-
tion expert and author of
Renegotiating with Integrity:
It’s Not Business, It’s Personal.
“You cannot go through life
without renegotiating either
personally or professionally.”
There will be times when you’ll
need to revisit a previously
negotiated contract or relationship. Although there’s
already a history between
you and your customer,
renegotiation can be difficult
to introduce.
“If you are reneging on a
commitment, you must admit
that to yourself,” Freeman continues. “This will keep you
humble and will change your
approach. The main thing is to
show the person or company
respect. Be honest and forthright. And most importantly,
listen. Remember that no matter what you think, it’s not
business, it’s personal. Therefore, behave as if it is personal
and react as if it is business.”
JUST SAY
NO
TO BAD
DEALS
SOMETIMES, IT PAYS TO SAY
NO. Whenever a deal becomes
something that doesn’t fit your
organization’s long-term aim, it
probably makes sense to walk
away. No isn’t just a trick to
push the other side or drive fear
into them. Rather, it’s a legitimate negotiating stance, based
on the deal and its merits (or
lack thereof).
“Very often, hearing ‘no’ at
the beginning of a negotiation
releases the emotional pressure
of negotiating and offers a safe
framework with which to determine the best course,” says Jim
Camp, president of Vero Beach,
Fla.-based Coach2100, a negotiating management and training
company and author of the new
book, No: The Only Negotiating
System You Need for Work and
Home. “Small children understand the power of no. Children
know that their saying ‘no’ signals the beginning of a negotiation, not the end!”
Camp advises that you stop
compromise-based negotiations, driven by assumptions
and emotions. “Stop guessing
how much discount to give so
they will like you and will want
to continue the relationship,” he
says. “That’s a terrible mistake.
Instead, be driven by mission
and purpose, and stay calm and
emotionally neutral.”
