Navigating the Maze of Negotiation in Sales

Sales professionals often commit the mistake of considering selling and sales negotiation as two different ends of the spectrum. Every step of selling involves employing a sales negotiation strategy. Therefore, it is important for sales managers and leaders to understand that each step inches towards closing a deal are crucial.

The best negotiation tactics work around frameworks that ease the buyer’s mind leading to a win-win situation. Sales negotiation requires strategies and approaches that understand the needs of the customer in-depth. They are as follows -

Consider the Value Proposition

A good value proposition can give you an edge over your competitors. When creating a value proposition, it is important to assess the benefits of your products and services.

If the seller and the buyer share the same set of beliefs and values, then both of them will likely reach an agreement that serves well for both sides. This could be as simple as the former quoting a value proposition and the latter agreeing to it before even mentioning the price.

Set Benchmarks and Deadlines

Creative thinking and concessions can be the result of setting a deadline. Set short term benchmarks as well as a realistic deadline. When you fail to meet a deadline, set a new schedule as to how to move forward.

Use Priming to your advantage

We know that written/spoken communication can impact the behaviour of a person.

The word – Priming means influencing a person’s thinking. Priming also involves trust-building. Sales people need to engage with right prospect and early engagement helps to build valuable information and brings trust. Don’t focus on the costs rather, focus on the desires and needs of the prospect. Influence the customer’s decision during the first conversation itself. Divert the focus on the desired outcome as much as possible.

Do not jump to the conclusion

Negotiations may be in full swing even after some parties have agreed to the terms. Many ideas will be put forth and ideas will even be rejected. A sales person will be thoughtful not to revise the contract until all the parties have agreed with all the terms and conditions.

Analyse the Bottom Line

Sometimes the success of a negotiation is evaluated by how low the prospect can go and still the outcome is a win-win situation. This will ensure that the parties won’t make decisions in hurry only to regret it later. Adjusting the prices, looking for new opportunities, cutting down on expenses are some of the things you can do to improve the bottom line.

Know when to wait and when to walk away

Mindset plays an important role in negotiating a deal. Walk away from a deal if you sense that the deal will incur losses to the company. Walk away if you want to have an upper hand in negotiations. A prospect who signed the deal just because of a price drop is bound to cause problems in the future. ‘Walking Away is the number one strategy that differentiates top-performing negotiators from the rest.

Identify the hidden needs

If you are unaware of the hidden needs of the buyer, then you will be unable to close the deal. This is where Iceberg Theory comes into the picture. Iceberg theory is similar to Maslow’s hierarchy of needs but most of the needs are below the iceberg. The key to figuring out hidden needs lies in understanding the buyer.

The buyer wants to be treated with respect and doesn’t like being underestimated. They want to be heard and they want their needs to be taken care of.

Listen more than you speak

Listening to what the client says is key to closing a deal. You can’t start the negotiation process unless you allow them to talk uninterrupted. When you have presented the terms of the deal, let them take the lead instead.

Choose collaboration

Closing a deal starts by earning the client’s trust. The sales managers have to be collaborative and engage in a dialogue. The sellers who choose this approach of negotiation are often trusted. It’s often seen that the party takes time in assessing the deal to come to a fair conclusion. Collaboration benefits both parties. Long-lasting relationships are nurtured and built in the long run.

Collaboration is often a win-win solution. The sales managers get more information about their prospective clients.

Be Hopeful

Many sales people feel nervous during a sales deal negotiation. Develop a belief that the prospect is looking for what you bring to the table. This positivity should be reflected during the flow of the conversation. Be mindful of your tone and your body language while physically interacting with your prospects.

To conclude, you will be able to close a deal if you know your prospect well. You can reap maximum benefits if you understand your prospect. You should utilize the time in the first conversation (discovery call) to know them well. The ability to negotiate skilfully can turn a lot of potential prospects into high paying clients.

Navigating the Maze of Negotiation in Sales