13.1 The Key Points to Focus on when Negotiating

Let us start things off by focusing on the key points that should be included in any negotiation so you are aware of how you go about doing it in order to gain the advantage.

Now, we said at the outset that there was a need for the competent salesperson to also be able to negotiate, but they have spent time learning about what to do and also when to push hard or when to back off due to you really undermining your own ability to close the deal.

This does mean that there are a number of important points you must focus on when you are looking at negotiating and we will now look at certain characteristics and tips which are going to make life so much easier.

1. Be real

The first characteristic to be pointed out is the ability to read the situation and to be realistic with what you can hope to achieve.The ability to understand when to push and when to step back is going to make a huge difference to your chances of getting the deal to progress.

By being realistic it will mean that you are able to make the correct decisions regarding the negotiation as you will also have a better grip on the direction things are going.

2. Use your intelligence

Another key point is to use your intelligence and actually try to stop and think about things before acting.You must use your intelligence to create concepts in the negotiation that appear to be logical, reasonable, and most importantly that will draw in the potential buyer even more than they are at this moment in time.

You must seek to learn the art of conceptual thinking because without this you will find that it becomes rather difficult to negotiate in the correct manner, because you will find it hard to come up with ideas which could resolve a particular issue at that moment in time.

3. Be confident in yourself

One thing that people will often let happen, and at times are not even aware of it, is to allow their own confidence to slip when they realise that they have entered a negotiation.

However, if you are able to, remember that you are still in the driving seat due to the fact they must be interested to a certain extent or they would not be negotiating with you. At the same time, they may also be lacking in confidence themselves, so if you are able to portray yourself as still being absolutely certain that the deal is going to be sealed, then you can take control of the negotiation process and this will only help you in the long term.

4. Learn how to think clearly under stressful situations

Those who are the best out there at negotiating are the best mainly because they have mastered the art of being able to think clearly, even when they are in a stressful situation.Everybody is going to feel the pressure when they are trying to negotiate a deal, but it is how you handle the anxiety and stress that will make the biggest difference.

The problem for those who are unable to handle the stress is that they can easily miss out on those golden opportunities that you must be able to take advantage of and this is the key difference with those who see negotiating as just being part and parcel of the industry. Those people see an opportunity and have the confidence in themselves to think clearly and grab it with both hands.

5. Control your emotions

There are different parts of the negotiating process whereby the seller can start to get excited at the thought of making progress and perhaps being well on the road to sealing the deal. However, allowing your emotions to get the better of you will only lead to problems on your part, because this can have a negative impact on the potential buyer who can see this excitement as a form of arrogance and you can lose the deal in an instant.

At the same time, some sellers will also allow their emotions to get the better of them when they feel things are going against them. At that point, they will perhaps get angry or depressed and that negative energy means it will be impossible to turn things around in your favour.

6. Avoid being indifferent about the negotiation or deal

What we mean by this is that you must avoid developing feelings whereby you would like the deal, but you do not actually need it and, therefore, there is a sense of not caring. Each deal and each negotiation has to be seen as being rather important because why else would you be in sales if this was not the case?

If you are starting to develop those feelings, then perhaps being in sales is not quite for you after all.

7. Develop your stamina

When we say develop your stamina, we mean more than just your physical stamina because your mental ability to last the course of the negotiation process is actually more important.

The problem is there are some people who feel things are stalling and that there is no point in carrying on, but be prepared to stand your ground and tough things out as it can become a battle of wills at the end of the day and the person with the most stamina will eventually win.

Those are important characteristics and things to think about, but there are also several strategies you should consider focusing on to try to make a difference to the way in which you allow negotiations to progress.

1. Always do your research

You should never enter the negotiation process blind. Doing your research is absolutely essential because it means you will know your own product thoroughly, and at the same time will have looked at what the potential buyer either wants or needs and will understand how to hit home on those key points. If you can do this, then you will get the upper hand in next to no time.

2. Let them do most of the talking

Another important strategy is for you to adopt more of a listening position rather than you doing all of the talking. The idea here is that you give quality over quantity when it comes to what is being said and the other party will often give you hints and tips as to what they are expecting, allowing you to come up with the perfect solution that is still in your favour.

3. Be prepared to walk away

There is nothing worse than trying to flog a dead horse, but some salespeople are just unable to walk away from a potential sale no matter how bad it is getting for them. If the discount is getting too big or the other side is just not willing to move at all, then you need to have the guts to just get up and accept that things are not going to work out the way you had hoped. That is not to say you have failed, but rather you should focus your attention on another deal.

4. Do not give in too early

Even though it is tempting, try to avoid giving in too early because it can make you appear weak and at the same time you could have got a better deal if you just held on a bit. The problem is that some salespeople will often be quite desperate at times and desperation is a terrible affliction since it leads to making bad decisions. Whenever you are negotiating, step back, view what is going on, take a deep breath, and then decide if you are going to proceed.

5. Be prepared to practise

Negotiating is a skill you can learn, but the only way you can do this is by getting out there, doing it, and learning from any mistakes you make.Yes, you will need confidence, but that is also something which comes from practise and you just have to accept that there will be various negotiations where you win and various negotiations where you lose.

FACT

Approximately 65% of all buying decisions are emotionally based. We all have a tendency to make purchases from an emotional perspective…and then justify those decisions somehow from a rational perspective. Sell to the heart first; the head second.

Source: salestalent.com

13.2 The Key Points to Avoid when Negotiating

Just as it is important to understand the kind of things you need to do when negotiating, it is also very useful for you to understand the key points you must avoid at all costs to keep the negotiating going and not come unstuck.

1. Never try to resolve an issue by discussing another point

If during negotiations the other party mentions something that is of concern to them, never try to answer it by showing the strength of another area of your product or service. They are telling you this for a reason and that reason is because they want to know the answer to that specific point. They are not interested, at this moment, in what else you can do for them as that is not their concern, so address their issue before you consider moving on.

2. Never just be hypothetical

If you are trying to make a claim during the negotiation process, then back it up with evidence rather than just theory because people prefer facts to just ideas. If you say that you are able to do something for them, then make sure that it is true and show them how, or why, this is the case. You will find that people will just lose confidence in you if you merely throw theories at them.

3. Never be abusive to others

If you are negotiating a deal with an individual and they state that another company or product is better, then you should never be abusive about that competitor or be underhand with what you say about them. This is not going to make you sound better, but rather it is only going to lead one way and that is the potential buyer wondering what on earth is going on and why you are being so unprofessional.This is not you being clever and it is certainly not a smart move to make either.

People can, at times, fall into the trap of making an assumption when it comes to the negotiation and this can be fatal. Assuming something will often lead to you going down the wrong road and making mistakes and this can ultimately end your chances of things going the way you want them to.

5. Never rush it

Negotiations can take time, so be prepared to invest that time to get what you want at the end of the day. Rushing your negotiations will lead to mistakes being made and also people will feel that you see them as not being very important and they will turn against you in an instant. Take your time, think about things, and you will see that you are able to get what you want out of it.

6. Never, ever over negotiate

This sounds like something that nobody would do, but it is surprising how often people can be guilty of over negotiating. You must use your intelligence to understand when to stop or you can turn a deal against yourself simply by being too enthusiastic. Never allow your emotions to get the better of you or else life is going to become rather difficult.

13.3 The Concept of the Three P's

When it comes to business and sales negotiations, there is a concept known as the three P's and it is useful to understand the basics of this for those people who are just trying to get to grips with how to negotiate a sales deal.

Even though there is some debate as to what the three P's actually are, which can vary according to the industry, it generally stands for the following:

1.Preparation

2.Presentation

3.Pause

1. Preparation

We mentioned this earlier in the module and stated how going in blind is going to be a rather crazy thing to do because of the way in which you can easily trip yourself up in next to no time. However, your preparation should include trying to get to grips with the thing that is motivating the buyer, understanding any potential red flags to be aware of, and also better understanding the market.

2. Presentation

There is also a real need for you to spend time thinking about how you will present your side of the deal to the potential buyer to make sure that you know how you can word things to make what you are saying as attractive as possible.

What points are you going to stress? How are you going to say things? What can you do to make your points sound even stronger than they already are? How can you motivate them to buy?

3. Pause

Out of the three P's, it could easily be argued that this is the most important part, the pause. There is no point in just continuing without giving the other side a chance to either respond or even think about what has been said, because if you swamp them with information and give no room to breathe, then how on earth can you expect negotiations to actually move forward? In all honesty, it is best to stop and pause for a moment to just allow people to think and that applies to you as well.

Control your emotions and never allow them to get the better of you and you will be able to keep control of the entire situation better than you ever expected.

13.4 When to Know to Stop Negotiating

Finally, we have to look at when to know that it is time to stop negotiating because you can either be wasting your time in carrying on or, alternatively, you can be ruining your own chances of closing the deal simply because you do not know when to be quiet.

This is where your ability to read a situation is going to play such an important role. You need to be capable of understanding body language or the subtle words the potential buyer is saying, either in your favour or against you, to then realise that it is time to stop negotiating. If they are giving you positive vibes, then go to close the deal rather than scrambling around to try and just push that extra 1 or 2 percent. Going for those small margins can completely flip an entire deal on its head and that is something which has to be avoided at all costs.

At the same time, if the potential client is clearly putting up emotional walls, then you need to ask yourself the question as to why that is the case. The chances are your negotiation skills are simply not up to scratch and that is something you are going to have to address at some point. However, when this happens, it is time to stop negotiating and just admit that you have lost out this time around because there are more potential clients out there who could be more receptive to what you are saying and are ready to buy.

Basically, we are saying it is time to stop negotiating when you understand that the person is either ready to buy right there and then, or they have lost interest to the point that it is similar to trying to get blood out of a stone. The only problem is when you become too self-absorbed in what is going on to understand that you are wasting precious time when you could be sealing a deal elsewhere. The point earlier regarding the need for you to listen more than you speak is certainly true and it is something you must take on board and put into action immediately.

As a result, your negotiation skills will improve tenfold and, thanks to this, your conversion rates are also going to increase simply because you know when to stop and when to push on.