A benefit is only a benefit if the customer sees it as one. Without benefits, a feature has little or no value. For example, having a computer with a 128K modem allows someone to download information off the Internet faster than lower-K modems. Lead-free paint offers health-related benefits, in-line skates offer the benefits of getting fresh outdoor air and exercise, and a V8 engine offers the benefit of being able to pull a boat with ease.
Identifying benefits for potential buyers means relating the product/service to their needs and increasing sales.
Typical psychological needs that you should consider relating to include
vanity
security
desire to succeed
loss prevention
Negotiating: Win-Win Tactics
The nice thing about egos is that everyone has one.
JOE GIRARD, HOW TO CLOSE EVERY SALE
Organizations are created for the long term. Salespeople promote longevity by creating and sustaining long-term relationships with all stakeholders based on mutual gains and trust.
New relationships, such as strategic partnerships or sole supplier, often begin with negotiation. The end result needs to be good for both parties. Anything but a win-win outcome will come back to haunt you. Here’s how to produce a mutually beneficial result:
Situations in which salespeople find they must negotiate include
creating an agreement for outsourcing of a product or service
adjusting to new prices or other terms
changing terms of delivery
determining salary and other compensation details
purchasing of a vehicle
changing deadlines for reports
Before you begin formal negotiations, do this:
Prepare yourself thoroughly. This will reduce your stress level and give you the ability to display confidence.
Develop a list of alternative outcomes. Evaluate them all. Select the best plus some acceptable fallback positions that could still meet your needs.
At the start of your negotiations, do this:
Establish a goal that is good for both parties. Even if the parameters are broad, both parties should focus on a similar objective instead of beating each other up.
Establish ground-rules for the process. Doing so is particularly useful if the negotiation might be emotional. Agreements could include
listening to each other without interruption
respecting each other even though you may disagree on issues
being flexible on the less important issues
tackling one issue at a time
agreeing on the trivial issues first and leaving the more difficult ones to last
State your needs clearly and firmly. Make sure that the other party understands them by getting verbal confirmation.
Determine what the other party’s needs are. If you can meet their needs, chances are they will be more inclined to meet yours. If you frustrate them, they will do the same to you. Find out what their needs are by listening and asking open-ended questions. Listen to what they are telling you instead of formulating rebuttals. If you are not sure, ask them to repeat or paraphrase their words to confirm understanding.
During negotiations, do this:
Build on the things you agree on. Look for other, similar areas that you can agree on.
Prioritize issues; determine what is negotiable and what is not.
Try to understand what the other negotiators think and feel. Read their non-verbal language. What are their facial expressions telling you? What are their eyes doing when you ask for commitment? And what are their postures and hand gestures telling you?
Avoid arguing, especially on minor issues. Train yourself to agree to the small things so that you establish a collaborative environment focused on solving the more important items.
Avoid aggressive behavior. This will result in a win-lose outcome. This behavior is typified by
talking louder than the other person
dominating the discussion
using sarcasm
using authority (if you have it) to force the other party into acquiescence
Avoid passive behavior. This behavior is characterized by
refusing to deal with the issues
failing to make others aware of your concerns
Be assertive. Be tough (not unreasonable) on the issues, but soft on people. Being assertive means that you will
maintain eye contact
speak with a firm voice
use “I” statements, not “you” statements
Avoid blaming others. You don’t want to poison the atmosphere and cloud the focus on problem solving.
Don’t say “no” without giving your reasons for declining a proposal.
Don’t dwell on the past. The past can’t be undone. Being stuck in the past will cause hostility and defensiveness.
Look to the future. Visualize how much better things will be if both parties are able to get satisfaction.
Probe. Ask questions. Listen. In this way, you will uncover the needs of the other person. By finding those needs and then meeting them, you will set the stage for meeting your needs.
Show positive body language. Don’t fold your arms or legs, roll your eyes, tense your body, scowl, or raise your voice.
Seek creative solutions that satisfy both parties.
Avoid “either/or” solutions. Limiting yourself to two alternatives reduces the possibility of creative new solutions.
Use the words “what if?”
Focus on common interests rather than opinions.
The party with the shortest deadlines will tend to concede more as the deadline approaches. So if you have a deadline, don’t reveal it.
Deal with issues as they arise so that they don’t accumulate and overwhelm your discussion.
Don’t get side-tracked. If your negotiations are going off on a tangent, get back on track with a comment such as “Yes, I can relate to that, but could we get back to the central issue …”
Be creative. There is more than one way to reach your goal. Have alternative ideas that will still provide benefits for all. Rigidity reduces creative problem solving and increases conflict.
Stop negotiations from time to time to share your feelings. Find out how others are feeling. If anyone’s feelings are negative, find ways to overcome the hostility so that you can continue to solve problems in a constructive manner.
Whenever the discussion becomes vague, clarify your understanding with a summary. For example, say, “Do I understand the problem correctly? In my mind, it is …”
In a unionized environment, be aware of items affected by the collective agreement. These should not be negotiated on a one-to-one basis.
At the conclusion of the negotiation, do this:
Don’t make extra concessions during the euphoria of reaching an agreement.
Summarize everyone’s understanding so that everyone is absolutely clear as to what has been agreed upon. Reduce it to writing so that no one will have to rely on memory for the details.
No power is strong enough to be long lasting if it labors under the weight of fear.
MARCUS TULLIUS CICERO (106-43 BC), ROMAN ORATOR
Negotiating: Using Your Power to Influence the Buyer
The measure of a man is what he does with power.
PITTACUS (C. 650-C. 570 BC), GREEK STATESMAN AND MILITARY LEADER
Salespeople are in the business of influence. They are influencing people daily. For example, they need to persuade
buyers to use their product/service
support staff to assist with clerical duties
people in other areas to ensure that promises made are delivered
Negotiating is the ability to influence people. It is the art of letting someone else have your way. Most people have no idea how easy it is to influence others.
People have a lot more power to influence than they believe. There are many ways you can use power to help you achieve your objective. The more power you have, the more likely you are to be persuasive. So find your power in some of the following sources:
Precedent. Show examples of where your product/service has added value for other clients.
Legitimacy. Legitimacy is about appearance. The most legitimate ideas are those that are
presented in writing
endorsed by experts
appear in official places and prestigious magazines
So, present your ideas with supporting documentation such as references. Point to articles in publications that speak to the virtues of your product/service. Quote well-known people who have endorsed similar ideas to yours.
Persistence. If water keeps dropping onto a rock, it will eventually make a hole in it. Similarly, you will wear down your opposition if you are tenacious. You will demonstrate persistence by not taking “no” for an answer. Keep wearing your opponent down with comments like “Yes, but …” or “When else could we meet?” or “Let’s keep trying till we do find a way.”
Competition. Let potential clients know that they are competing for your services, not the other way around. For example, they should feel that you have limited inventory and resources that are in demand by others.
Knowledge. Let people know about your expertise. Show them your qualifications (legitimacy). The more impressed they are with your credentials, the easier it will be to influence them. Also, demonstrate your knowledge with facts and examples of where you have been successful before (precedent).
Rationality. Give people the data to back up your opinions. Presenting the data in writing (legitimacy) will further increase your power.
Rank. The more senior you are in your organization, the more power you will have. For example, a senior salesperson will be more influential than a junior one. The director of sales will have more power than a salesperson and the vice-president will have more power than anyone other than the president. So, depending on the size and strategic nature of the transaction, consider bringing in the “big guns.”