Sales Negotiation

Learning Objectives (KEY TAKEAWAYS)

  • Describe the reasons we often don’t negotiate well.   

  • Describe the steps to negotiating.  

Overview

Negotiating is something that comes up with most deals we close.  Not understanding what negotiating is, when to negotiate and how can cause us to lose deals, delay deals, stall out deals or lose out on deals.   

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What is Negotiation

Negotiation (n): 

  • A discussion aimed at reaching an agreement.

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Blockers

What are some of the things we do to prevent us a win-win negotiation? 

  • We mix negotiating with selling. 

  • We negotiate from a place of fear. 

  • We negotiate with the wrong person. 

  • We don’t negotiate. 

  • We negotiate the wrong thing.

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  • Negotiation is not selling your service.  Negotiation happens after the client has agreed your solution will or is solving the current challenges blocking them from meeting their goals.   

  • Negotiating from a place of fear.  We automatically discount at the sign of push back.  The services we provide are valuable, our goal is stay as close as we can to our the value we provide which is relayed in our pricing.  We think we need to give the customer everything they want.  

  • We negotiate with the wrong person.  If you are offering heavy discounts to someone other than the executive buyer, odds of them coming back and asking for more is high.    

  • Not making the prospect feel like they won something.  

  • Not digging into the ask.  Where is the ask coming from? 

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Your Mindset & Emotions around Negotiation

Mindset: Shared Interest - We are here to reach an agreement on signing off on our partnership. Reciprocity - we are both going to win or lose here (how ever you want to think of it)  

Emotions: Awareness that this is where emotions can be high (on both sides). No = control. 

    • Train yourself to hear NO as something other than rejection.

      • I am not yet ready to agree

      • I want something else

      • I feel uncomfortable

      • I want to talk it over with someone else

      • I don’t think I can afford it

    • Solution based questions

      • What about this doesn’t work for you

      • What would you need to make it work 

      • It seems like there is something here that bothers you  

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Identify, who is involved in the negotiation process? 

  • Coach/Champion

  • Legal 

  • Security 

  • Procurement 

  • CFO 

  • Executive Buyer

Talk Track:

  • Clarify with questions 

Mirroring: Repeat buyers few words with upward tone. 

→ Pause -- Let buyer talk. (Chris Voss)

  • Validate their concern

  • Address the full scope of requested negotiation levers  ‘If we figured out a way to address this item, what other obstacles would we need to work through?’

  • Ask permission to address the items

  • Confirm the adjustments 

What levers do we have available to us to pull during a negotiation?

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Guided Practice

Pods & 1:1’s

Independent Practice

Review 2 of your calls.  Make note of an objection, what you think went wrong, how you would handle it differently in the future

 

Resources

 
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Book - Never split the difference, Chris Voss & Tahl Raz