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Lets Make a Deal
Smart buyers will always ask for a better price. Unfortunately, too many sales people and business owners automatically think that reducing their price is the most effective way to respond to this request. However, negotiating is not always about price. Although price is a factor in virtually every sale it is not usually the primary or motivating factor. Everything you say and do from the first contact with a prospect affects the value of your product or service in their mind. That's why I believe it is important to look at the negotiating process differently in order to achieve better results. First of all, invest time gathering information about your prospective customer, his needs, situation, and buying motives. The more information you have the more prepared you will be to negotiate later in the sales process. Regardless of what you sell, and to whom, information will help you negotiate more effectively. Many of my clients tell me that their customers care only about price, but upon further exploration, other issues usually arise. Uncovering the key issues your customer is facing is critical to your negotiating success. The second most important step is to establish the value of your product or service to your customer. Positioning is an important factor and will affect the price your customer is willing to pay. What pain does your product or service eliminate? How does it solve a problem they are experiencing? How do your products and service differ from your competitors? Most of my clients sell premium products at a premium price. In exchange, their customers receive better than average service, faster response times, or higher quality products. What is your leverage and how can you use it to increase the value of what you sell? You have executed the above steps but price is still an issue for your customer. What do you do now? Instead of conceding to their request and giving them a discount, focus on creating a trade. This means you should ask for something in exchange for making a concession. What can you trade or ask for? Almost anything! A longer contract, a bigger order, more add-on items, an introduction to another key decision-maker in the company, access to their mailing list or client database, or payment terms. You can negotiate for products and services that the other person or company offers such as consulting, office equipment, computers, furniture, business services, etc. I once worked for an electronics company and my boss offered a big-screen as payment for services to a potential vendor. I was shocked when the vendor eagerly accepted because I always had the impression that business people focused strictly on cash. Here are a few ways you can effectively position this request. "If I could do that price for you would you be willing to extend the length of the contract for an additional three months?" "If I could work that out would you be prepared to give me advertising space?" "The only way I could give you that is if you add one more line of products." "Let's put that aside for the time being. Would you be able to give a similar amount of?in exchange for that concession?" The key here is to think outside the box and explore other options available to you. I recall speaking to a prospective client about a training workshop and was asked to make a concession that amounted to a fifteen percent discount. I was not comfortable with this so I asked my prospect if he would be willing to give me a comparable amount of his product instead. He did not have the authority to make such a decision but spoke to someone who did. My request was eventually denied so my client conceded to my initial offer. Another effective approach is to make the concession but take something away from the initial offer. For example, you could say, "I can do that. However, I will have to charge you for?" or "I can do that. Do you want free delivery or after-hours service taken out of the contract?" Most people will expect you to keep all the conditions "as is" but they will want the lower price. By demonstrating how much the concession is worth you can reduce the effectiveness of their request. Finally, another strategy is to always ask for something in return for making a concession even if you don't need it. I have been surprised how many times I have gotten something extra simply by asking. Plus, it often prevents the other person from asking for an additional concession because they know you will ask for something in return. Remember, your ultimate goal is to give away as little as possible in order to close the sale. Every time you discount your product or service you discount yourself and eat away your profits. © Copyright 2004 Kelley Robertson Kelley Robertson, President of the Robertson Training Group, is a professional speaker and trainer on sales and employee motivation. He is also the author of "Stop, Ask & Listen Proven Sales Techniques to Turn Browsers into Buyers." Receive a FREE copy of "100 Ways to Increase Your Sales" by subscribing to his 59-Second Tip, a free weekly e-zine at http://www.KelleyRobertson.com. You can also contact Kelley at 905-633-7750.
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a href="http://www.elearn-university.com/Careers/coaching/index.php" class="nav">Coaching Negotiating Tactics: How To Strike A Negotiable Opening Shot There is no right or wrong to fire up your opening negotiation... 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. 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. 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. Do You Want a Paycheck or a Passion? 10 Qualities Managers are Looking for in Hiring You Based upon my research of over 300 managers in the last two years, I have found what qualities are most important to hiring managers. Power Pricing - Getting the Right Price for Your Products and Services There's an old joke about the New York City blackout. Power was out everywhere, and the electric company could not figure out what was wrong or how to fix it. Finally, they decided that the only one who could solve the problem was a long-retired worker who knew the system inside and out. He came out to the power plant, looked around, picked up a hammer and tapped one of the generators. Managing the Sales Negotiation Process How many times have you heard: Embarrassed To Discuss Your Prices? Seven Common Reasons We Cant Talk About Them Last week, a wonderfully-skilled electrician installed a new light fixture for us. He was competent, courteous and efficient. He answered all our questions simply, with skill and eloquence. I was amazed, as you might imagine, when I asked him, "How much do we owe you?" and his embarrassed reply was, "Gee, is $50 okay?" The Ultimate Truth in Persuasion OK, so you want to improve your persuasion power right? What Are The Four Types Of Negotiating Outcomes? Negotiating outcomes are the types of results that can happen at the end of a negotiation. All negotiations end up with one out of four possible outcomes: one party wins and the other loses, both parties lose, they get stuck in a stalemate, or both end up winning. Obviously, the goal in a cooperative negotiation is for both parties to walk away with their needs being satisfied. Familiarize yourself with the four different negotiating outcomes and make it your goal to aim for a mutually-beneficial outcome. Negotiating Skills Will Get You Ahead Negotiating skills can help you manage lots of different kinds of life situations, both at work and in your personal relationships. Here are a few examples of where these skills can help you build an even better life for yourself: The Art of Haggling Did you know that at one time in this country that there were no fixed prices on anything. You would go into a store and find an item you needed then you would begin the process of negotiating the price. This might seem foreign to us today, but it use to be the rule. In a later article I'll talk more about the history of price negotiation in this country, but today I want to give you some pointers about how to negotiate well. 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?" 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? How To Make An Inflexible Bureaucrat See You As A Person Inflexible Bureaucrats Are Characterized by: 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? 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. The Six Rs for Changing MInds and Overcoming Resistance This article borrows from Howard Gardner's book, "Changing Minds" (2004). In order to get people in conflict to cooperate or collaborate sufficiently to settle or resolve their differences, and perhaps achieve reconciliation, it is necessary that they change their minds. The reason they are in dispute is because they are of two different minds about a particular thing, which is what they are fighting over. People do not change their minds easily. Some people are prepared to be burned at the stake, literally, rather than change their minds, or admit to a change of belief. People cling to the artifacts of their own minds with great stubbornness. This is called resistance. When a mediator seeks to bring parties together, she will encounter resistance. If there were no resistance, if changing minds was easy, there would be no need for mediators. Business: Keys To Negotiating Well Whether it's buying a car, asking for a pay rise, saying 'no' to a friend or renting an apartment - at some stage in our lives we all are going to need to know how to negotiate. Yet, so few of us know the basic skills before embarking on life changing purchases or decisions! These 8 keys will assist you negotiate well. The Most Powerful Persuasion Skill Youll Ever Learn Criteria Elicitation
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