NegotiationThe best way to get an edge in sales interview is to inform your employer, you have learnt the NEGOTIATION skills.  Never in my career, have I observed Sales professional reiterating that they have taken training in NEGOTIATION.  On the flip side even 1% benefit out of negotiation, directly adds to the company’s bottom line.  Imagine what it can do to company’s bottom line wherein the industry profitability benchmark is 1%?

Negotiation is not a contest but you are there to give a little and get a little to achieve a win win situation.  Negotiation is also not about money but it’s about people.  People negotiate with people who they like or respect.  So build the likability and respect factor to become a better negotiator.  I will share 12 points to become an effective negotiator.

  1. Plan your negotiation meeting i.e have options; know your starting price and your last price.  Know when it’s time to walk out.
  2. You will command power if you somehow convince the other party that you are  “PREPARED TO WALK AWAY” and we call that walk away power.
  3. If you are selling don’t negotiate but deliver value and then demand your price.  Hence always have options and always be thinking how you can add value to your buyers business.
  4. If you are buying don’t make the first offer and if you are selling don’t quote your best offer as well.
  5. If you are buying; don’t accept the first offer either. This might make your seller unhappy thinking that he might have got a better price. So negotiate.
  6. If you are selling don’t say “I will make you the best offer of USD 1000.00 rather rephrase it “WOULD YOU TAKE IT AT USD 1000” and wait for an answer.   This leaves you an option to wriggle out.
  7. Never give anything for free. Because next time it will become the starting point and plus more.
  8. Remember 80/20 rule?  Your 80% of the discount will come in the last 20% time of your negotiation.  So plan it out.
  9. Have time to negotiate and don’t get trapped into last minute discount wherein you are under duress to close and you wind up giving huge discounts.  Japanese would use such tactics with US traders in the early days.
  10.  Salami deals:  Is an old saying “you can’t eat the SALAMI just like that; you slice it and then eat it cut by cut.”  Depending on your plan ensure you don’t fall prey to Salami deals.
  11.  Don’t negotiate when you are tired or under duress; research says that when you are under duress or tired; you tend to concede unnecessary.
  12. We negotiate important parts of our life such as house, Car, Job and relationships as well; so ENJOY your time Negotiating.

 

Good Luck on your next negotiation.