Archive for the ‘negotiation skills’ Category

When Buyer’s Use Negotiation Tactics

January 10, 2012 by Scott Olsen

How many times have your heard a customer sing the sad song of an “erratic economy” or “unstable financial times” as a way to get deep discounts. This tactic, or negotiation trick, is known as “violins.” While some companies are experiencing very trying times, this isn’t true of all corporations. Borrowing from Charles Dickens, I’d say it’s been the best of times for some corporations and the worst of times for others. Even the companies who are experiencing the “best of times” are using “violins” to get amazing prices. These “well off” companies have told me, “just because we’re not suffering financially does’t mean we shouldn’t be able to get in on the great deals.” The best sales professionals have learned to approach the negotiation process as a game.

So, how does the effective sales person deal with buyer tactics and avoid becoming a victim? The first step is recognizing a tactic. A negotiation tactic can come in many forms and by definition is a gambit or probe used by the buyer to expose and/or weaken the sales person’s position. The important thing to remember is that negotiation tactics are not demands, they are bluffs made up by a buyer to get “unreasonable” deals from the seller.

Once you’ve recognized the tactic, the best way to deal with the tactic is to neutralize it by countering the buyer’s tactic with a seller tactic. It may seem counterintuitive to some, but it is essential that the buyer understands that the sales person is on to the buyer’s games and that the sales person can play this win/lose game too, and perhaps even better. Once the buyer believes he or she can’t beat you at this type of  ”game” you may have a chance to raise the negotiation from the win/lose level to the balanced level. The balanced level deals with real demands and is typified by “quid pro quo.”

Some of the most common tactics I see are “competition,” “hoops” and the “fritz.” And let’s not forgot the all time classic, “your price is too high.” As the name implies, “competition” is when a buyer says something like, “I may have to look and see if your competition is willing to meet my needs.”

Hoops

You might be experiencing “hoops” if a customer asks you to do a series of worthless tasks without a clear end in sight.

Although “hoops” may be one of the most frustrating tactics to get caught up in, it can also be one of the easiest tactics to counter, by asking the customer, “if I fulfill your request, do we have a deal?”

Fritz

The “fritz” tactic can be the most intimidating to experience and usually comes across as loud and abrasive language in response to something you’ve said, usually immediately after you’ve shared your price.

In summary, the first step in dealing with buyer tactics is awareness. The second step is to neutralize the buyer’s tactic by countering or exposing their tactics. For example, if a customer uses “fritz” on you, you may counter with your own “fritz” or any other tactic. Any tactic can counter a tactic.

Balanced Agreements

Warning! When you engage in win/lose negotiation, typified by either or both sides using tactics, there is always a chance your negotiation could end is lose/lose. If you are adept at countering or exposing tactics, you may be able to raise the level of negotiation to balanced or possibly win/win.

Buyer’s negotiation tactics are not demands, they are games. Tactics are designed to fool or trick you into caving and lowering your price. A customer demand, by definition, is a deal maker or deal breaker. The wise sales person can tell the difference. When a customer makes a demand, you are in prime position to make own your demand of equal or greater value. Recently, one of my clients experienced a negotiation that went like this… The seller requested 50% payment up front and 50% upon delivery of services, with payment terms of net 10 days. The buyer stated that their policy is to pay in net 30 days. In response, the seller said he could go along with the “net 30″ if the buyer allowed the seller to submit the invoice at 100% immediately. The buyer agreed. In the end, the seller was delayed the initial 1/2 payment up front, but received the full payment earlier than originally expected.

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Categories: Creating Ideal Customers, Executive Selling, Sales Management, Sales Skills, Sales Stories, Selling in Difficult Times, Tactical Selling Skills, Uncategorized, negotiation skills, professional development

Are You Selling Above the Line?

January 4, 2012 by Scott Olsen

Like playing above the rim in basketball, selling above the line is a world of difference. First, let’s explore what it means to sell below the line.

If you are selling below the line, some of things you are probably doing or experience include:

  • engaging in a pricing battle early and often
  • demonstrating and presenting each and every product feature without regard to what your customer really cares about
  • engaging valuable internal resources on “opportunities” that haven’t been qualified
  • hoping your deals close by the end of the quarter without any reason or logic behind your assumption
  • going it alone
  • giving into negotiating tactics

How do you know if you are selling above the line? Here’s a list of some of the things you are probably doing:

  • creating a valuable and tailored customer experience throughout the entire sales process
  • asking thoughtful questions that help your customer evaluate what they are doing verses what they could be doing and the potential impact
  • moving the sale forward each step of the way with skin in the game from the customer
  • establishing trust and credibility before diving into sensitive but essential topics
  • engaging all decision makers and influencers
  • uncovering all decision makers and influencer critical success factors
  • connecting the dots with and for your customers so they understand how you solution uniquely satisfies there most important needs
  • uncovering and leveraging your customer’s critical events to determine and guide the close date
  • leaving no resource (internal or external) untapped if it will help you close a deal
  • countering win/lose tactics
  • negotiating balanced or win/win agreements

What else do you do to ensure you’re selling above the line?

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Categories: Executive Selling, Major Account Selling, Sales Management, Uncategorized, negotiation skills, selling

Why negotiate?

March 21, 2011 by Anthony Nicoli

When this question comes up, most people will answer along the lines of the following:
To get want I want.
To win.
To protect myself.

All these are legitimate reasons to negotiate. However, negotiating can be much more. In fact, it can be an opportunity for self development and an opportunity to get to know another person or organization far better. 

Negotiating can empower you to live an authentic life in mature relationship to others. Negotiation is a means to assist you to make manifest your uniqueness, your potential.

Negotiating is a lot like dancing: graceful and beautiful when skilled, painful to do and watch when unskilled.

In skilled negotiation, we respect others but do not blindly submit to the them. We respect ourselves and our positions as well.

It can be a process for uncovering and reconciling differences between ourselves and our counterparts.
It can be a mature interplay between the parties where the whole situation can result in outcomes larger than the sum of the parts. Unfortunately, all too often it devolves into an adversarial exchange of win-lose tactics, never achieving the potential of the situation. Both parties usually leave with less than they could have achieved otherwise.

To realize the potential of a negotiation, you need to be a skilled participant. You need to be prepared to engage in all three types of negotiating: win-win, balanced and win-lose. You need to be able to recognize win-lose tactics and counter them. Most importantly, you need to understand what you want, your role and how you feel when you begin the negotiation and as it proceeds.

We invite you to embark on a journey to understand both the process of negotiating and yourself better.

Welcome!

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Categories: Negotiation, negotiation skills

Effective Negotiation Skills

May 21, 2010 by Scott Olsen

How important is your ability to negotiate, your ability to get what you want and/or need from others? My friend’s daughter wanted to play volleyball in college after a successful high school career. She was accepted into Seattle Pacific University for her academics and the volley ball coach welcomed her onto the team, but didn’t offer her a scholarship. My friend suggested that his daughter specifically ask for a scholarship. After a little more prompting and motivation, my friend’s daughter did ask, and she did receive… a half scholarship! A huge value!

In the book, Women Don’t Ask, by Linda Babcock and Sara Laschever, they note that “By neglecting to negotiate her starting salary for her first job, a women may sacrifice over half a million dollars in lost earnings by the end of her career…” Imagine what effective negotiation skills might mean to you in your personal life, professional career and your ability to make a major impact for your company.

I’d love to hear about the biggest negotiated win you’ve achieved and how you did it! Please share in the space below.

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Categories: Differentiating You, Sales Management, Sales Stories, Tactical Selling Skills, career development, negotiation skills

Negotiating for What You Want

July 25, 2008 by Scott Olsen

What you don’t negotiate can cost you.

You’ll never know what you can get unless you negotiate for it. The following story is a reminder to me that “negotiation” is a skill that has to be learned, developed, and thoughtfully put into action to work.

Do you ever wonder how much you are paying for your airline seat compared to what the person paid for the seat next to yours? How about what the person at your athletic club is paying to use the same equipment as you each month? And finally, how about the office space next to your office? Well, one of my career development clients just learned the hard way. She was paying $1300/month for a one person interior space with no windows. She was told that the one person office across the hall with the beautiful windows with the forest view was $1800/month. When she asked if their was any room to negotiate, the response was “no.”  A few months go by and she starts to talk with person who ended up leasing the window space across the hall and learned that he was paying $1300/month. After she got over her frustration that she was paying the same as him without the window…, she asked how he got that rate? He replied he asked the management firm to match another (less desirable) space across town or he would walk. He used the “competition” tactic like a pro and it worked!

How do you negotiate for what you want?

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Categories: Sales Skills, Uncategorized, career development, negotiation skills, professional development, sell, selling

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