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| A Note from the Editor |
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| Friendly Grrrs from SalesDog |
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In this economy you can practically hear
the purse strings tightening throughout the corporate
world. Those who are buying are expecting more
for less. How can you win the business and still stay
profitable? This week Julie Thomas shows you how to negotiate
from the beginning to the end of the sales process. Don't
miss this. Julie will show you how to hold your own and
come out ahead.
Need help reaching top level decision-makers? Selling
from the top down makes the most sense, but the higher
up your prospect's company ladder you go, the more barriers
you find. Fortunately cold-calling expert Leslie Buterin
has an insightful and free e-course on cold calling executives.
I've taken it and loved her direct delivery, concrete
examples and inspiring ideas. To get "Ten Jealously
Guarded Secrets to Cold Calling Company Presidents"
free, click
here.
Trapped in voicemail hell? I first met Mark Hunter
a.k.a. The Sales Hunter when I came across an article
of his about communicating price increases. I liked it
so much it made the newsletter the very next week. Now
I'd like to share with you Mark's useful list of 15 tips
to surviving voicemail hell. Check
it out. |
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| To your success, |
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Tina LoSasso
Managing Editor, SalesDog.com |
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Negotiating to Win
By Julie Thomas
Julie Thomas shows you how the negotiating process takes place
throughout the sale and what you can do to position yourself to win.
In today's hyper-competitive markets, prospects are more risk-averse
than ever. Many prospects focus on every aspect of every purchase
to prove that they are getting the best possible deal. Often they
have "professional purchasers" who are fully responsible
to get the best deal possible. At the same time, your goal is to establish
enough value to minimize the cost discussion when it is time to close
the business. As a seller of goods and services, your company's profits
are directly affected by your ability to meet your customers' needs
while meeting your own goals.
Sales is the business of relationships, and
like any relationship it requires give and take. We typically expect
the give and take, also known as negotiating, to happen during proposal
and contract discussions; however, in reality, we continually negotiate
throughout the sales process - on everything from picking a time to
meet to determining who will participate in a demo to hashing out
the terms and conditions of a contract. Negotiations are most productive
when conducted objectively, and at the right time.
Here are a few points to remember when negotiating with prospects:
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- Understand the "need" behind your prospect's
position. In any negotiating situation, your responsibility
is to understand your prospect's criteria –– as
well as your own –– and ethically create positive
outcomes for all parties involved.
- Know your empowerment level; you could find yourself in
dangerous territory with either your company or prospect
if you commit to things that are outside of your span of
control.
- Define what constitutes a "win" for all parties.
Here, it is critical to consider what you want as well as
what your prospect wants.
- Be clear on what you can negotiate and what is non-negotiable.
For each of us, there are non-negotiable items that are
not open for discussion or compromise. It is important that
we understand those and are clear about what we are willing
to negotiate on.
- Maintain composure; respond rather than react and maintain
a high level of rapport every step of the way.
- Finally, know your "walk-away" position; some
deals are simply not worth what you are being asked to give
up.
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A key to successful negotiating is to understand when to negotiate
in the first place. Negotiating components of deliverables, terms
or pricing before the prospect is actually "sold" on your
solution will cause you credibility problems. It is important not
to negotiate until you have clearly shown the prospect what his world
will be like after he acquires your product or services, and established
both business and personal value with the individuals you are working
with. Also understand the prospect's process for purchasing so that
you are not caught in a position of multiple negotiations with multiple
individuals.
There are typically three things to negotiate at the end of your sales
cycle: Deliverables, Terms and Conditions, and Pricing. One thing
to keep in mind is that your price is always a function of your deliverables
and your terms and conditions. As you prepare for your negotiation,
there are three key strategies that can help you through the process:
Strategy #1: Trade-offs
Successful negotiations are a balance of meeting both parties' needs.
With trade-offs, your objective is to meet both parties' needs by
trading items from one category with items from a second category.
For example, you may be willing to reduce your price with a change
in terms or deliverables.
How it might sound:
"If you want this product shipped to multiple locations, are
you willing to accept different payment terms?"
Strategy #2: Embellishments
This strategy requires you to add incremental value in one category
when you can't make a trade-off to accommodate the prospect. For instance,
you may throw in deliverables that have little cost to you but are
large value to the prospect.
How it might sound:
"If we expand the training class from fifteen to twenty people,
are you willing to move forward today with the terms and investment
we have discussed?"
Strategy #3: Compromise
Compromise involves finding the middle ground in the same category.
Splitting the difference on price, payment terms or a specific deliverable
could be examples.
How it might sound:
"If we can split the difference in payment terms between net
10 and net 30, can we move forward today?"
Think about a current sales cycle that is nearing the closing point.
First, analyze all areas of your qualification process to confirm
that you have a truly qualified prospect. If you find that you are
not working with a qualified prospect, re-engage on the sales cycle
rather than the negotiation.
Next, prepare for any potential negotiation by identifying both the
prospect's and your own ideal position. Make a list of what is non-negotiable
from your perspective, and another list of what you think your prospect
might require to move forward. From these two lists, develop potential
win-win negotiating strategies using the aforementioned strategies:
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- Trade-offs
- Embellishments
- Compromises
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Negotiating for success requires planning and strong communication
skills. Being prepared for the negotiation with solid ideas and strategies
will put you in a position of strength!
Julie Thomas is President and CEO of ValueSelling Associates,
the creator of the ValueSelling Framework™. Since 1991, ValueSelling
Associates has helped FORTUNE 1000 business-to-business sales organizations
compete and win in markets crowded with seemingly similar products
and services. For more information, visit www.ValueSelling.com.
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| Praise for Top Dog Sales
Secrets |
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"One of these top dog secrets can earn you a fortune."
– Jeffrey Gitomer
"It's like reading the best ideas from 50 sales books
all in one book."
– Michelle Nichols, Savvy Selling International
"I HIGHLY recommend it for the inspiration AND the skills
that one will learn or ‘re-learn.' It is easy to read,
entertaining, and very broad in topic selection."
– Lori Richardson, Score More Sales
Order
your copy of the book today to learn an effective
strategy that will help you take back control of the sale. |
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