CS28310 Negotiations

Negotiations Maximise revenue for company Maximise revenue for company –B2B practice More than price involved More than price involved –Other parameters involved Two sided event Two sided event –Customer/supplier Win-win situations Win-win situations –Both customer and supplier gain from relationship

Prior to negotiations Begin negotiations after you’ve fully presented your proposition Begin negotiations after you’ve fully presented your proposition Understand the objections raised up to this point in the sales process Understand the objections raised up to this point in the sales process Identify your customer’s motivation behind these objections Identify your customer’s motivation behind these objections Describe to the customer how your product or service will be used by them Describe to the customer how your product or service will be used by them they’ll receive Quantify what value they’ll receive

Is the person your negotiating with the right person? Is the person your negotiating with the right person? Adopt the right negotiating attitude… Adopt the right negotiating attitude… –Be confident in the value your product or service will return –Be patient, gain trust –Work towards a true win/win solution –Have a set of limit criteria and be prepared to walk away

During negotiations Use open-ended questions to confirm your understanding of their needs Use open-ended questions to confirm your understanding of their needs Confirm accuracy of your stated benefits Confirm accuracy of your stated benefits Be prepared for tactical responses from customer Be prepared for tactical responses from customer Don’t react - respond with more questions Don’t react - respond with more questions listen listen

During negotiations Use silence to your advantage Use silence to your advantage Negotiate change of delivery times, follow up, service period, training etc Negotiate change of delivery times, follow up, service period, training etc Seek to identify agreement on small items to help develop momentum to the negotiation… Seek to identify agreement on small items to help develop momentum to the negotiation… Summarise periodically Summarise periodically –Use notes –Re-iterate small items

You get agreement Summarise verbally and then in writingin writing the agreement Summarise verbally and then in writingin writing the agreement Thank the customer for their time Thank the customer for their time Reinforce the purchase decision Reinforce the purchase decision Reflect on the negotiation for next time Reflect on the negotiation for next time

You get a “NO” Thank the customer for their time and commitment to the negations Thank the customer for their time and commitment to the negations Give the customer an opening to come back your company in the future Give the customer an opening to come back your company in the future Reflect on the points that seemed to prevent the negotiation from moving forward... study them... know them... use them Reflect on the points that seemed to prevent the negotiation from moving forward... study them... know them... use them