A Successful Sales Negotiation Checklist
Before entering into a negotiation, understand what you are selling and the needs of your target audiences. Buyers often end up taking advantage of sellers who fail to plan, which ends up as a loss in profits for the company. Preparation and planning before a task increase your overall chances of success in Sales negotiation. As Sun Tzu wrote in his book “Art of War,”
“Every battle is won or lost before it is ever fought.”
7 cardinal rules of a Successful Sales negotiation
The most successful sales guru spend as much time in planning for sales negotiation as they do in preparation for bidding. This article focuses on a checklist to polish your negotiation skills and increase your chances of achieving a profitable outcome for your company.
1. Team
The first and foremost thing to determine is who you are working with; the composition of your team. Every person is different, and you cannot expect them to interact with the buyer in similar manners. Following are some of the points to consider when it comes to team planning:
- Have you determined personalities or team members (e.g., who might be a good collaborator, etc.)?
- Which members have good and timely decision-making abilities?
- Determined your negotiation approach
Improved customer experience leads to long-term loyalty, so get your sales team members trained by sales training Dubai based experts to prioritize listening and adapt their pitch based on customers. Sherrie Campbell, a psychologist, says,
“Take full advantage of listening. Salespeople have two ears and one mouth for a reason. Taking the time to listen can set the sales professionals apart from competitors who push too hard.”
2. Action
To achieve maximum engagement and positive outcomes, sellers must initiate and lead negotiations with potential buyers. For this, proper planning is essential to be able to answer all the questions by the customer. It gives you an upper hand in negation. Consider this: If a buyer plans his action, but the seller does not plan before coming into negotiation. Who is likely to have a favourable outcome? Defiantly the buyer.
Therefore, planning can ensure that your negotiation is proactive instead of reactive. Take charge of the whole negotiation process from beginning to end. Following are some of the things to consider to ensure your action plan:
- Make a detailed plan before the meeting
- Choose the right meeting place depending upon the potential buyer and the services you are selling.
- Define an open strategy with multiple options
- Identify all the desired outcomes and your responses to these events.
3. Power
Your business value proposition gives you strength. It is the reasons why a buyer buys from you, factors that affect their purchase. It summarizes why a customer should buy your service, and it gives you leverage over the other party. Therefore, learning to communicate your value gives you power in negotiation. The salespeople can convince the potential buyer why and how their services will add more value to their businesses.
4. Buyer Tactics
When you go in for a negotiation, be prepared as you are most likely to hear at least one objection from the buyer. If you are dealing with an experienced buyer, then you might have a difficult task as he comes with tactics to get what he wants at his price. Following are some of the potential tactics that buyers use in negotiations and how to respond:
- Competition: It is time pressure for the sales team when the buyer says: “I am talking to (your competitor company) after this meeting and will decide later whether to go with you or the other company,” In this situation, the first step for the seller is to make sure the buyer is not bluffing and then provide their final offers.
- “You need to do better than this”: Buyers use this strategy to intimidate sellers into decreasing the price, or to corner them into agreeing to their terms. For sellers, it is essential not to cave in and ask the buyer “Why?” to show them that you believe in the quality of your services.
- “Meet in the middle”: You offer your price, the buyer offers his lower price and then suggests to split the difference and meet in the middle. DO NOT settle for this as it might not be fair for your company.
5. Objectives and Possibilities
Objectives are the desired outcomes that both the parties want. It is essential to discover the other party’s objectives before negotiating. It will give you an upper hand in negotiations as you understand your buyer’s actual position.
Requirements are factors that you are expected to play on or guidelines that make sure you are fit for the buyer. Find out the reasons behind the requirements set out by the buyer to assess if you can meet them. These things will make sure your sales team knows what they are doing and what needs to be done to succeed. Following are some of the things to consider:
- You have defined the objectives and requirements of both sellers and buyers.
- Brainstorm new ideas to approach the negotiation.
- Prepare to respond to requests like trades and middling ground etc.
6. Agreements and Alternatives
Alternatives are essential for getting maximum profit as you can easily get the deal you want at a better price somewhere else. It gives you an advantage to the other party. If you have limited alternate options, then your leverage is lesser. Consider the following things before agreeing to a deal:
- Determine an ideal agreement.
- Remember that walking away in some situations is better than accepting a worse deal.
- List all possible buyer questions and offers.
- Determine your reservation price and never agree to fall below it.
7. Emotions
Emotions are an essential part of any negotiation, but most companies overlook it. If you can regulate your feelings, it will help with achieving your desired goal. Deal with emotions and relate to your buyer to maximize the chances of a profitable outcome. Consider the following things before going into a meeting:
- Identify your buyer’s emotions.
- Understand how their emotions are affecting their thinking and use that knowledge to achieve better outcomes for your company.
- Develop new ways to make the buyer feel respected, valued, and connected.
Your emotions and passion make a real difference when it comes to making deals and dispute resolution. Train your employees from professional sales training Dubai based companies to make sure your salespeople learn to control their emotions and adapt to the situation at hand.
A win-win Negotiation
Never enter a negotiation unprepared as you will get handed the short end of the stick. Prepare well so you can improvise on the spot and increase your chances of success. Lack of knowledge and expertise will lead you to failed agreements and loss in sales.
Follow the above-mentioned rules to be able to enter into productive negotiations.