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Ask for More - You May Get More
If you are involved with sales, how do you feel when you hear phrases such as, "Can you do anything about your price?" or, "You'll have to do better than that." and variations on these? Does a cloud or two cross the sun? You start to think, "here we go again.." yet, have you prepared for this situation? As a purchaser, do you push suppliers on price alone? OK, it is a fair tactic when so many sellers will give in, but does it lead to long-term gain? What other ways could you get a better deal for your organisation? Maybe extended credit terms or volume rebates? Whichever side you are on, what difference could 2% make to your company? Just to get another 2% on a selling price and/or 2% less on your purchases? How much extra profit will this produce? Developing your ability to negotiate more firmly and flexibly is not a contradiction in terms, it can be the foundation for increasing business success and also improving relationships. The simple definition of negotiation is: "To work or talk (with others) to achieve a transaction, settlement, an agreement. (from Latin negotiari do business with)" Typically, there are four options for the outcome of a negotiation and the desired one is the "win-win" unless you are just going for a one-off deal and you may want to opt for the "I win you lose" choice, although that is not really necessary! We can all improve ourselves as negotiators by following a few simple steps and treating situations as more than just a bargaining joust. It will also help your cause if you consider situations as something to be resolved and not as a battle to be won! As with many things in life, the key to success is in the planning and preparation. This will impact your confidence, and behaviour, when with the other party. The more prepared you are, the greater the chance of you achieving the deal you want. One of the first things to consider in your planning stage is "the balance of power". Imagine a set of scales and list the pressures or drivers each side faces: I wonder what you find? Many similarities? When you recognise that both sides might be facing similar pressures you can take heart! Another way to use this is to assess what drivers the other party is facing, and you can do to reduce the ones on your side to increase the "leverage" you have. To help you with planning and handling negotiations you may find it useful to work through the "AIMING HIGH" process. AIMING HIGH A ssess: Consider situation, balance of power, leverage. What is going to be needed for a win/win outcome. What is the previous experience with this contact? How much do you need the deal how much do they need it? What might be the barriers? What have you to offer that is unique? I nterests: What are your needs, wants and desires? What are theirs? Think about their interests put yourself in their shoes what do they need what are their drivers (business and personal)? M ake time: Planning and preparation is key create time for it. Do not be rushed do not negotiate under (or "un") prepared. Also, make time for the actual meetings time pressure can be a problem in a negotiation the party feeling under most pressure will often make the biggest moves. I nnovate: Remember, it is not just "their" problem if a genuine negotiation is to take place it is a joint one! Think about then rethink "the pie" and how it can be shaped and cut. Look got different ways of approaching the situation. N eeds: What are their key needs and wants and objectives? What are yours? Check back that your ideas can satisfy these for both parties. G enerate options: Put your package together consider all the tradable items those you want and those you can give. The more options the better. Whether the buyer or the seller, think about the package in terms of more than price. H uman factors: Even when being at your most objective and professional the negotiation is still usually between two (or more) people. Your interpersonal skills count for a great deal: how well you can assess the others; what they want and are doing; your skills in gaining rapport and getting them to talk; good listening and questioning. Also, handling tough situations and managing the dynamics of the meetings is key. I ntegrity: Do not get caught up in game playing. Good negotiations will normally be taking place in the context of (or at the start of) an on-going business relationship and partnership. It does not matter what others may do operate with integrity and be true to yourself and your values. You will get more good quality deals in the long run. G et before you give: Trade well ask for what you want BEFORE you give! H appy endings! Aim for win/win and if you cannot get that leave the door open for another time! If you follow this process you will be well-equipped to negotiate effectively. You will be more confident and successful if you make time to work at developing the package you are offering and, at the same time think about what you want from the other party. Think about the things you can build into your package that you can use to "trade" with. (Called variables or currency or other terms to suit!) What might be the things the other party has which they would be happy to "trade" or move on? The key to this, is to choose things which are of low cost to you, but valuable to the other party and vice versa. Remember, in a negotiation, everything has a value, no matter how insignificant it might seem at the time! As part of this, plan your "best deal", ie the ideal solution for you, and your "worst deal", ie the lowest position you will take. It is important that you are clear about this and know when to walk away! Within your best deal, include as many variables as possible so that you have things to trade with other than price. Think about what you will be willing to give, and more importantly, what you want to get in return! The actual approach to the meeting can be improved if you follow the principles of "Triangle Talk" from Kare Anderson's book "Getting What You Want". Be clear about what you want, what they want and then keep your proposal tuned towards what they can accept. When you are through the "proposing" stage and in what many think is the actual negotiation or bargaining stage, it is important to remember a simple phrase and it is all about "get" then "give". "If you?..then I will?..". Think about the impact of the opposite order, "If I??then will you?.?" What will an experienced negotiator do in response to that? To help yourself with negotiations, practise! Look for opportunities in low-key situations and test out ways of getting a deal. Before going to meet that important client or major supplier, as part of your preparation make some time to go over your plan, your package and the options, and then how the other party might act. Practice using the "get-give" trading phrase and anticipate potential problems. You will be pleasantly surprised by the results you get. Graham Yemm a founding partner of Solutions 4 Training Ltd. During his years as a consultant he has worked with a variety of major companies in the U.K., Europe, USA, the Middle East and Russia in Sales, People and Management Skills. He has had many years of experience tailoring programmes to address organisational issues around sales, account management, negotiations, sales management and customer service especially focusing on the communication and personal skills aspects. Graham is a Master Practitioner of NLP and was involved with setting up and running "The Business Group", which promotes uses of NLP in organisations. He is an accredited trainer for the LAB profile programme "Words that Change Minds". His personal enjoyment comes from helping individuals to take more responsibility for their own actions? freeing them to feel they can make more choices about their lives. Contact, http://solutions4training.com/ or +1483 480656
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a href="http://www.elearn-university.com/Careers/coaching/index.php" class="nav">Coaching How Barter Can Help Your Business Online or Offline How Barter Can Help Your Business Barter: Its Not Just for Doctors Anymore Time was, in the country, the local "doc" was as likely to get paid with a couple of chickens as a couple of dollars. Doctors these days won't stand for that, of course, but while some people have moved completely away from barter and stayed there, others have embraced it wholeheartedly. The Art of Negotiation in 535 words I want to get better at negotiation, but where to start? UK Amazon currently has 2332 books on negotiation. Google indexed nearly 4 million relevant (yeah right) pages. All I need is a simple, straightforward model that I can put to use now. Guidelines for Ambassador Appointments Ambassadors to other countries are a vital part of international relations. It is not uncommon for an ambassador to be the face or image of one country to another. Ambassadors act as a window into the importance of education, security, financial situations, business, and other societal issues. An ambassador has the power and authority to create opportunities through negotiation. Just like a negotiator, an ambassador must be equipped with specific qualities to ensure success. The distinction between the two should be that in the same. 7 Tips for Bartering Products and Services What better way to gain a new customer than by getting something you need in return? The following are tips to help you use bartering correctly, and make it a good experience for both you and who you are bartering with. Can a Corporate Executive Really Use The Beautiful Mind; To guide decision making? I would like to comment on the "A Beautiful Mind" movie and the book, which was actually much better. I just finished reading another book on the similar side of John Nashs' assertion of working together rather than competing against. That book was "Co-opetition." By Adam M. Brandenburger (Havard guy)and Barry J. Nalebuff (Yale Dude). Many have been aware of such theory for quite a while and practice such occasionally for the betterment of an industry or through the art of diplomacy, sometimes through misdirection and other times as an experiment (nothing more, nothing less) especially when it really does not matter and it is not really core to our direction and market domination strategy for any given region. I would have to differ from the movie version in that if you tried to run your business in the fashion that Jim Nash discussed in theory you might do well for a while, but would eventually get hammered in the market place, whether or not you actually were able to sleep with a brunette when you wanted the blond with the big bust (go see the movie, you will understand that comment). In theory it sounded wonderful in the movie yet would not take you very far in the cut throat world of business, even though the regulators always want to level the playing field, more often then not they are manipulated agents for the competition as indicated by Adam Smith, Carl Marx and Rodney Dangerfield in "Back to School." The fact is that even the referees of business, namely the regulating bodies who want to see the playing field leveled usually tip it in the favor of a politically powerful and well connected companies which fund the campaigns of the over see'ers (politicians). Once the regulatory bodies find they have been duped rather than bring it up with the politicians, they want to punish all the players in the industry and kick them out of the game, of course this hurts the fans (consumers) and then the game (industry) and then the referees and fans are not needed (read; "When Atlas Shrugged" By Ayn Rand). Making the Deal: Women as Negotiators Negotiating is no game. It is not for the weak or the fragile. It takes assertiveness and someone who feels comfortable in the mano-a-mano world of business. Can women negotiate the deal as well as their male counterparts? Absolutely! In some cases, they may even do a better job. Women have a definite edge at the negotiating table because of their instincts and natural power of persuasion. How to Negotiate Effectively You may be thinking, "Gary, I am a mom, housewife, or stay-at-home dad, so why do I need to know how to negotiate effectively?" A One Stop Financial Solution Amy Wright, 34, was extatic when her realtor showed her the three bedroom townhome overlooking the lushious golf course. It was exactly the home she was looking for. The interior was sunny and bright, with a newly remodeled kitchen, spacious bedrooms, and the perfect little study area to set up her new home office. It had a spectacular pool and a lovingly tended flower garden. Best of all-the seller had to move immediately, so the home was a steal and miraculously within her budget! Amy was already making moving preparations when suddenly, a devastating blow paralyzed her plans. Her credit application for a mortgage had been denied. She could not understand how this had happened-just a year ago, her credit had been almost perfect! The last year had been a little tight, and sure she had a few late payments here and there?but she had no idea it was so bad that now she could not even get the home of her dreams. While Youre Waiting Not long ago, I made a partnership pitch, on behalf of an organization I represent, to another organization with similar interests. If the idea had come to fruition, it would have radically changed our organization. Negotiating Technology Contracts Have you ever tried to negotiate a deal for software, computer equipment, or consulting services with a technology company? The task can be daunting. Unfortunately, the sales forces of most IT companies are armed to the hilt with techniques to get the best deal for them, and not necessarily the best deal for you. And even worse, most of us computer folk (like myself) have never been trained in the art of negotiation, so it can be difficult to spot a snake in the grass. Before you begin negotiating a technology deal, know what you are getting in to. Negotiate to Your Advantage The hardest and most important part of any negotiation is knowing when to walk away. Secrets of the Trade Revealed: Bartering for Business In its simplest form, bartering involves an equal trade. One business swaps a good or service for another. A lawyer, for example, may swap a few hours of legal assistance for a stay at an out-of-town hotel. Four Ways To Work Out Business Disputes Business owners have four options to resolve disputes with partners, vendors or customers. Each option is based on different assumptions, and entails a different cost. Therefore, it pays to understand them better. Barter and Its Benefits What is Barter? Barter involves 2 parties. Each party wants to trade with each other and instead of exchanging cash for products or services, the exchange is carried out with products or services that each possesses. That is, there is a trade of a product or service that someone has, in return for another product or service the other party has. The Most Powerful Persuasion Skill Youll Ever Learn Criteria Elicitation Dont Be Afraid Of Silence In any conversation with two or more people, there is a tendency to want to talk all the time to fill any awkward silences or gaps that appear in a conversation. Are You Scaring Away Potential Customers? When you are trying to make a sale and ask someone to fill out a credit application and new account form, do your potential customers turn around and run to the competition? 30 Tips for Keeping Meeting Expenses to a Minimum Money makes the world go 'round. And when it comes to meeting planning, money can probably get you whatever you want. However, few event planners have the luxury of an unlimited budget. Your boss may like to drink champagne on a beer budget. In other words, caution you to spend less, but expect miracles at the same time. Neogtiation: How to be Right Without Making Other People Wrong What exactly are we trying to accomplish by proving to others that we're right? We might win the argument but ultimately lose the relationship. Perhaps a better, deeper-rooted question is this: Why do we lose sight of success, of our big objective, when we feel challenged or intimidated?
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