Sales Tips | Sales Coaching

High-Powered Sales Negotiation

The Killer Secrets Behind Success
Andrew Barker

What do you do when one of your best customers has been hunting around for a better price? The customer makes it clear to you that they see no difference between your product and a much cheaper competitor. You’re told that they all look the same. Sound familiar...       

How do you handle a situation like that? What do you do? What are the sales negotiation skills you should employ? Should you drop your price to win?    NO!

Sales Negotiation Skills #1: Leverage- Never negotiate without it
        
You need more negotiating “leverage” and POWER....Right?    
        
First, recognize that this is a ploy. The customer is deliberately trying to undermine your position. Don’t Worry. Just following these simple Steps!
       
Start off by understanding the awesome power of “Perception”. Then you can create an infinite amount of power out of thin air. The first skill towards getting all the power back is to realize that all negotiation is – is just a game of PERCEPTION. 

Sales Negotiation Skills #2: Recognise that successful sales Negotiation is all about PERCEPTION
      
Who holds the high ground in negotiation?       
       
The customer? The person with the best product, cheapest price, the best value product or the best relationship with the customer???     
        
NO! ALL WRONG      
        
In negotiation the person who THINKS they have all the power has all the power. Therefore if you think you have 'no power' or let the customer convince you into believing that you have 'no power'. Guess what, you have 'no power'.     

Sales negotiation Skills #3: The person who THINKS they have all the POWER has all the POWER

Let's just repeat that again because it's so important;
          
"The person who THINKS they have all the power has all the POWER ".
       
Take the power back. Start believing you've got all the power. The customer will then start to believe that you've got all the power.
        
By doing this you become master of a very powerful 'psychological' game. It's like playing a game of 'poker' but a lot more fun....     
        
This is because all negotiation really is a game of managing perception and expectations. Mastering the invisible forces is such an important skill to successful selling but very rarely talked about by 'Old' School Sales Trainers.      
For completeness, let's just look at what not to do?      
        
It's a deadly sin in sales to come across as over keen to make a deal. You'll look a little needy. The customer will sense this and use it against you at the negotiation table. They will perceive you as weak.

Sales negotiation skills #4: Never be too keen to make the deal
         
You've inadvertently sent out signals saying you are weak. They'll then feel that the balance of power lies with them as you have communicated that you need them more than they need you.
         
In this instance it should come as no surprise when the customer demands a big discount. The sad thing is you will probably feel obligated into giving a large discount because you've let the customer con you into believing you hold a weak position. The Customer has actually outsold you, but you’re the sales professional. Don’t fall prey!
          
Take your 'power' back today learn to master the 'invisible forces'....

Sales Negotiation Skills #5: Perform trial negotiations early in the sale
      
Sometimes it is worthwhile performing trial negotiations with the prospect during early stages of the sales campaign. Deliberately introduce something small to negotiate over.      
       
The purpose of the trial negotiation is to see how they react and approach the negotiation process. Do they approach it in a win-win mind set? What attitudes do they have? Do they make sure you have won? Did they try to browbeat you? Did they try to squeeze every last bit of value out for themselves? What ploys did they employ?

Sales negotiation Skills #6: Never negotiate with an unmotivated buyer      
        
If there is no compelling reason forcing the customer to act, you can risk giving away some of your power. However, if an impending event is looming ever closer, the pressure is all on the prospect to make some firm decisions and fast.     
        
So never negotiate with an unmotivated buyer. If they are not motivated to buy from you, do not enter the formal negotiation phase. It would be better to do some more motivating by creating a sense of urgency. Remind them what they have to lose or miss out.     
          
Timing is one area closely related to motivation level. Timing can be one of the most powerful levers you can have. So learn to time the negotiation right. Look for outside factors or forces that makes timing important. For example, this could be an impending event, end of financial years, internal goals and deadlines or projects that have tight deadlines. Then time your negotiation as close as possible to the impending event. Delay and stall if appropriate. By doing this the pressure is ALL on the prospect to take action. 

Sales negotiation Skills #7: Open by getting the other side to justify their position 
        
If the other side states an opening position then it is a good habit to ask them to justify their position. This shows the prospect that you are paying attention and will not easily fall for any fast ones. This also gives you the opportunity to spot any weaknesses. When the prospect responds, see if you can spot any areas of uncertainty or weak justification. These could be non- issues that the prospect is trying to introduce to undermine your position.      

NOTE: Your objective is not to beat the prospect. It is always to reach a Win-Win scenario. But Professional selling is no place for the naive or stupid.      
        
Prospects will want you to believe that there are many other people chasing them for their business. If you do not come up with the goods then somebody else will. This ploy can be defused by having the prospect justify why they want to buy from you. Get them to quantify any value difference they see from the out-set.

Sales negotiation Skills #8: Always be on the look out for shifts in aspiration levels     
      
If you have negotiated well you should be able to observe the aspiration levels of the other party shift. Look for these shifts in aspiration levels. For example, if the prospect uses words like "We will never agree to this …" and then shifts to using words like "In most cases this would not be possible…" this is a good sign of shifting aspirations. This is positive feedback that you are moving forward. The prospect is softening up. It also indicates that the prospect is willing to compromise. If they are willing to compromise then they are willing to negotiate. Go ahead and get bartering.

Sales negotiation Skills # 9: Learn to use the Power of 1%   
       
One percent of anything is a believable number. Try to make one percent difference to the prospects overall business. This will be a big number and the prospect will more readily believe that it is achievable. Frame your benefits as making at least a one percent difference.    
         
It can be very persuasive to frame your arguments as making 1% difference. What would happen if this solution makes 1% difference to your bottom-line? What would happen if it makes 1% difference to your budget in this department? When you frame what you will add as making only 1% difference it is very believable and has credibility.
       
It is much more believable than making lofty claims particularly if you struggle to provide evidence of those lofty claims. Think about it 1% seems like a small amount and that is why it can be easily believed. When in reality it isn’t and the prospect will be able to figure that out. One percent of a $10 million company is $100,000.