THE FUNDAMENTALS OF PRICE NEGOTIATION Video 3: Detachment

OUTLINE DIAGNOSIS DETACHMENT CURIOSITY ABUNDANCE HOW TO SAY NO Video 2: detachment

Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO HOW TO BE DETACHED Develop alternatives. Objective benchmarks. Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO

Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO ALTERNATIVES Things that you can do without the client in question. Plan B. The more alternatives = the more detached you feel. Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO

Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO ALTERNATIVES Scenario 1: You are negotiating with your biggest client. Scenario 2: You are negotiating with 10 clients. How do you feel? Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO

Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO ALTERNATIVES Good news: It’s totally in your power to develop alternatives. Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO

Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO ALTERNATIVES If you are that dependent on any one client, no negotiation over price is going to be easy. Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO

Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO ALTERNATIVES Are you thinking about your alternatives strategically? Or are you falling into the same pattern of closing a deal and moving on? This is not new advice. We fall back into the same trap. Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO

TWO TYPES OF ALTERNATIVES External: Other clients or other ways to spend your time if the deal doesn’t go through. Internal: Other people in the client’s organization who could influence the final deal. Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO

INTERNAL ALTERNATIVES Developing relationships with other people higher up in the organization. It could be the end users, or someone who will be affected by the solution/product that you are selling. This will significantly affect how detached you feel. They may influence the way the negotiation happens. Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO

INTERNAL ALTERNATIVES Gives us a feeling of security. It could be the end users, or someone who will be affected by the solution/product that you are selling. This will significantly affect how detached you feel. They may influence the way the negotiation happens. Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO

WHY WE DON’T DEVELOP OUR INTERNAL ALTERNATIVES We don’t prioritize developing these relationships. We don’t know how. Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO

Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO One champion is almost never enough to stop internal detractors from pushing back on the cost of our product/solution/service. Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO

Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO OBJECTIVE BENCHMARKS Negotiating price is so difficult because it often turns into a battle of wills. Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO

Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO OBJECTIVE BENCHMARKS Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO

Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO OBJECTIVE BENCHMARKS You want to look for benchmarks that you can point to, to show that your price, without a discount, is fair. This HAS to be something persuasive to the buyer. Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO

Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO OBJECTIVE BENCHMARKS In my situation with Tom, I had extremely clear benchmarks: The price I was charging other clients. My pricing sheet. All of the rates they had paid in the past. Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO

Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO OBJECTIVE BENCHMARKS Having those objective benchmarks allowed me to be very clear about what was fair and remain detached. This allows you to pursue a conversation in a curious and problem solving way. Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO

OBJECTIVE BENCHMARKS $1500 $1000 $500 Market Price Price charged to other clients Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO

Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO OBJECTIVE BENCHMARKS Create a price sheet based on those standards and bring it to your meetings. It will totally transform the “me” vs “you” dynamic. Diagnosis - DETACHMENT - CURIOSITY - ABUNDANCE - HOW TO SAY NO

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