Negotiation and persuasion are key traits of a successful sales person. Understanding the art of negotiation will not only increase your chances of clinching a deal, but also create a win-win scenario for both parties involved.
Here are our five ways to negotiate effectively when in a sales situation:
1. Be Prepared
Before entering a negotiation situation it’s vital to be prepared. Do your research. Look into the company and individual you’re meeting and make sure you fully understand what their role is and exactly what the business is about. Also, ensure that you know your company, product or service inside out. You want to be sure you can answer any question that is put your way. Perhaps most importantly of all, confirm that you’re going to be meeting or speaking with the right person who can make decisions within the company!
Make sure that you eliminate any potential surprises. This includes having a set budget in mind, with limits on how flexible you can be, as well as having a fail-safe and realistic sales strategy in place.
2. Have a strategy
Don’t go into a negotiation situation blind. Firstly, you need to ensure that both parties are on the same page before entering a negotiation. There is no point in negotiating if you’re both after different outcomes. Your first negotiation will have an effect on the entire meeting, so make sure the first offer is at the upper end, or above, what you really want. Don’t be afraid to be bold, as long as you aren’t being unreasonable.
It is imperative that you remain consistent throughout the negotiation. Always make sure your offer is the last on the table and don’t back down when seeing the other parties’ reactions. Remember, the person you’re meeting with will also have a negotiation strategy. Identifying their approach early on will also help you to remain constant with your offer.
3. Making an Offer
When it comes to making, or even accepting, an offer in a negotiation make sure you are fully clear of all aspects. Know what you will be getting from the other party as well as what is expected of you. Don’t be confused by distractions or decoys, stick to your guns and be confident.
Remember, when you make your offer, the other person will most likely make a counter-deal. Reaching a compromise somewhere in between, if realistic enough, may take a bit of to-ing and fro-ing. According to the Chartered Institute of Marketing (CIM), an individual gets uncomfortable after around eight seconds of silence and will naturally want to fill it with a counter-offer. However, you should never accept a counter-offer straight-away. Remain in control for the entirety of the negotiation and be persuasive. The only way you’re going to move someone to a new position is by using persuasion techniques.
4. Create a Win-Win Situation
In negotiation it is vital to listen and understand the other party. Find out what they want and what matters most to them. Finding a price that is right for everyone is the first step to achieving a win-win situation. However, be aware of how else you can manage this. Something that they will appreciate but won’t make much difference to you is ideal. For example, timing or implementation and delivery could matter a lot to them. Be flexible by adapting to their needs and build this into your offer. Everyone gets what they want, at an agreed price, and everyone’s a winner!
Be persuasive. Say you’ll throw in some extras for free. Use your persuasive skills to bargain with the other party. By leading the negotiation and being confident you’re also being more influential. Just remember to be subtle, don’t let the other person know that they’re being swayed.
5. Seal the Deal
This is the pinnacle of the entire negotiation. If you have got this far then you really can’t afford any mistakes. Be aware of your body language. According to Entrepreneur, sitting down while sealing the deal indicates calmness and confidence, and suggests consistency throughout the negotiation. Be positive, have full eye contact, smile and don’t be afraid to add a little humour. By making the other person feel comfortable and relaxed, they will be more likely to accept your offer and confirm the deal!
Master the art of negotiation with Ripley Training
Become a successful sales person and improve the bottom line for your business by developing your negotiation and persuasion skills. Our Sales Negotiation Skills course will help you navigate and lead successful negotiations. If you are likely to be on the other side of the table, our Negotiation Skills for Purchasers/Buyers course will help you get the best results for your company when dealing with suppliers.
To find out more, why not give us a call on 01423 861 122? Or fill in our short contact form – we’d love to help you!