© Glendinning Management Consultants insert year doc ref 1 Fox Networks Group / FSN Sales Training - Selling & Negotiation Los Angeles, CA August 23 &
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© Glendinning Management Consultants insert yeardoc ref
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Fox Networks Group / FSNFox Networks Group / FSNSales Training - Selling & NegotiationSales Training - Selling & NegotiationFox Networks Group / FSNFox Networks Group / FSNSales Training - Selling & NegotiationSales Training - Selling & Negotiation
Los Angeles, CALos Angeles, CA
August 23 & 24, 2005August 23 & 24, 2005
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AgendaAgendaAgendaAgenda
Day 1
Introduction / Establishing Expectations 9:00
Building Customer Intimacy 9:30
Understanding Customer Needs 10:30
Setting Objectives 11:30
Lunch 12:30
Developing Value Propositions 1:30
Engaging the Customer 3:00
Conducting the Customer Meeting 4:30• Questioning• Listening • Handling Objections• Closing
Adjourn 6:00
Day 1: SellingDay 1: Selling
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AgendaAgendaAgendaAgenda
Day 2: NegotiationDay 2: Negotiation
Recap Day 1 / Day 2 Objectives 9:00
The Negotiation Process 9:30
• Confirm The Proposition/Power Analysis 10:00
• Variables / Shopping Lists 11:00
12:00
• Cost / Benefit Analysis 1:00
• Conducting the Negotiation 2:00
Negotiation Tactics 3:00
Group Role Plays 4:00
Adjourn 6:00
Lunch
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From Selling To NegotiatingFrom Selling To NegotiatingFrom Selling To NegotiatingFrom Selling To Negotiating
PlanningPlanningPlanningPlanning
PlanningPlanning
SellingSelling
NegotiatingNegotiating
The More You The More You SellSell The Less You Need To The Less You Need To NegotiateNegotiateThe More You The More You SellSell The Less You Need To The Less You Need To NegotiateNegotiate
SellingSellingSellingSelling
NegotiationNegotiationNegotiationNegotiation
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Selling & Negotiating ProcessSelling & Negotiating ProcessSelling & Negotiating ProcessSelling & Negotiating Process
Confirm Sales Confirm Sales PropositionProposition
Confirm Sales Confirm Sales PropositionProposition
Power Power AnalysisAnalysis
Power Power AnalysisAnalysis
Shopping ListsShopping ListsShopping ListsShopping Lists
VariablesVariablesVariablesVariables
Cost /Cost /BenefitBenefit
Cost /Cost /BenefitBenefit
StepsStepsTo Planning A To Planning A
SuccessfulSuccessfulNegotiationNegotiation
Summarize The SituationSummarize The SituationSummarize The SituationSummarize The Situation
State The Big IdeaState The Big IdeaState The Big IdeaState The Big Idea
Explain How It WorksExplain How It WorksExplain How It WorksExplain How It Works
Reinforce Reinforce Key BenefitsKey Benefits
Reinforce Reinforce Key BenefitsKey Benefits
CloseCloseCloseClose
Structured Selling ProcessStructured Selling Process
Conducting the Conducting the NegotiationNegotiation
Conducting the Conducting the NegotiationNegotiation
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IDEAS ORIENTEDIDEAS ORIENTED++ EnergeticEnergetic+ Enthusiastic+ Enthusiastic+ Creative+ Creative+ Spontaneous+ Spontaneous
- Lacks follow through- Lacks follow through- Phony- Phony- Undisciplined- Undisciplined
PEOPLE ORIENTEDPEOPLE ORIENTED+ + HelpfulHelpful+ Co-operative+ Co-operative+ Friendly+ Friendly+ Good team member / manager+ Good team member / manager
- Lack conviction- Lack conviction- Casual- Casual- Time wasting- Time wasting
RESULTS ORIENTEDRESULTS ORIENTED+ Efficient+ Efficient+ Determined+ Determined+ Single-minded+ Single-minded+ Take charge+ Take charge
- Critical- Critical- Dictatorial- Dictatorial- Insensitive- Insensitive
DATA ORIENTEDDATA ORIENTED+ Detailed+ Detailed+ Deliberate+ Deliberate+ Patient+ Patient
- Nit picking- Nit picking- Indecisive- Indecisive- Slow- Slow
INFORMALINFORMAL
FORMALFORMAL
OVERTLYOVERTLYDOMINANTDOMINANT
COVERTLYCOVERTLYDOMINANTDOMINANT
SSEELLLL
TTEELLLL
Interpersonal Styles Model - Interpersonal Styles Model - How Styles Perceive Each OtherHow Styles Perceive Each OtherInterpersonal Styles Model - Interpersonal Styles Model - How Styles Perceive Each OtherHow Styles Perceive Each Other
CONCEPTUALCONCEPTUALCONCEPTUALCONCEPTUAL SOCIALSOCIALSOCIALSOCIAL
ANALYTICALANALYTICALANALYTICALANALYTICALDIRECTDIRECTDIRECTDIRECT
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Product Product TrialTrial
Promotional Promotional OpportunitiesOpportunities
Brand Brand EquityEquity
Brand Brand LoyaltyLoyalty
Purchase Purchase FrequencyFrequency
Customer Customer RetentionRetention
Key Key MarketsMarkets
New New CustomersCustomers
Brand Brand AssociationAssociation
Effective Effective Media Media SpendSpend
VolumeVolume CostCost
ProfitProfit
$$$$
Different-Different-iationiation
Extend Extend BrandBrand
Consumer Consumer SegmentsSegments
Reach / Reach / FrequencyFrequency
Opinion Opinion LeadersLeaders
Primary Business NeedsPrimary Business Needs
Supporting Business NeedsSupporting Business Needs
Business DriversBusiness Drivers
Business
Business
Personal Personal NeedsNeeds
Personal Personal NeedsNeeds
Help me achieve my objectives
Help me achieve my objectives
No SurprisesNo Surprises Make me look good
Make me look good
Ego Massage
Ego Massage InformationInformation
Per so
na
lP
er son
al
Per so
na
lP
er son
al
Hierarchy Of Strategic Driving Needs – ExampleHierarchy Of Strategic Driving Needs – ExampleHierarchy Of Strategic Driving Needs – ExampleHierarchy Of Strategic Driving Needs – Example
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Setting Objectives/GoalsSetting Objectives/GoalsSetting Objectives/GoalsSetting Objectives/Goals
Effective Goals have the following elements:Effective Goals have the following elements: A single, focused actionable statement that defines what is to be A single, focused actionable statement that defines what is to be
accomplished.accomplished.
It has milestones such as key actions and due datesIt has milestones such as key actions and due dates
There are measurements or indications of success There are measurements or indications of success
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Value DefinedValue DefinedValue DefinedValue Defined
Customer BenefitsCustomer Benefits
Customer OutlayCustomer Outlay==Customer Customer
ValueValueCustomer ValueCustomer Value
Perceived RiskPerceived Risk== ExpectedExpectedValueValue
The benefits the customer derives from our offer and The benefits the customer derives from our offer and interaction minus the costs and risks associated with interaction minus the costs and risks associated with
acquiring those benefitsacquiring those benefits
The benefits the customer derives from our offer and The benefits the customer derives from our offer and interaction minus the costs and risks associated with interaction minus the costs and risks associated with
acquiring those benefitsacquiring those benefits
Value Proposition Are Based on Value Proposition Are Based on BenefitsBenefitsValue Proposition Are Based on Value Proposition Are Based on BenefitsBenefits
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Which gives you ...Which gives you ... So ...So ...
Which will give you ...Which will give you ... So you get ...So you get ...
Therefore ...Therefore ... Resulting in ...Resulting in ...
Leading to ...Leading to ... On the other hand ...On the other hand ...
Enabling you to ...Enabling you to ... Additionally ...Additionally ...
Useful Link PhrasesUseful Link PhrasesUseful Link PhrasesUseful Link Phrases
Feature - Link Phrase - BenefitFeature - Link Phrase - Benefit
Features To BenefitFeatures To BenefitFeatures To BenefitFeatures To Benefit
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Structured Selling - FrameworkStructured Selling - FrameworkStructured Selling - FrameworkStructured Selling - Framework
Summarize The SituationSummarize The SituationSummarize The SituationSummarize The Situation
State The Big IdeaState The Big IdeaState The Big IdeaState The Big Idea
Explain How It WorksExplain How It WorksExplain How It WorksExplain How It Works
Reinforce Reinforce Key BenefitsKey Benefits
Reinforce Reinforce Key BenefitsKey Benefits
CloseCloseCloseClose
Current ConditionsCurrent ConditionsCustomer NeedsCustomer NeedsLimitationsLimitationsOpportunities for BenefitsOpportunities for BenefitsConfirm contact interestConfirm contact interest
Current ConditionsCurrent ConditionsCustomer NeedsCustomer NeedsLimitationsLimitationsOpportunities for BenefitsOpportunities for BenefitsConfirm contact interestConfirm contact interest
Simple, Clear, Concise?Simple, Clear, Concise?Does it meet the needs?Does it meet the needs?Does it suggest action?Does it suggest action?Customer benefit?Customer benefit?
Simple, Clear, Concise?Simple, Clear, Concise?Does it meet the needs?Does it meet the needs?Does it suggest action?Does it suggest action?Customer benefit?Customer benefit?
Who does what, when, whereWho does what, when, whereGive assurance it's practicalGive assurance it's practicalAnticipate questions and objectionsAnticipate questions and objectionsEnsure understandingEnsure understandingWhat is different or better about it?What is different or better about it?Offer, pricing, risk, supportOffer, pricing, risk, support
Who does what, when, whereWho does what, when, whereGive assurance it's practicalGive assurance it's practicalAnticipate questions and objectionsAnticipate questions and objectionsEnsure understandingEnsure understandingWhat is different or better about it?What is different or better about it?Offer, pricing, risk, supportOffer, pricing, risk, support
Reinforce that our idea gives the buyer Reinforce that our idea gives the buyer what they needwhat they need
Reinforce that our idea gives the buyer Reinforce that our idea gives the buyer what they needwhat they need
Offer a choiceOffer a choiceGet a decisionGet a decisionSuggest something we can doSuggest something we can doUse silenceUse silence
Offer a choiceOffer a choiceGet a decisionGet a decisionSuggest something we can doSuggest something we can doUse silenceUse silence
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OPENOPEN
OPEN - ProbingOPEN - Probing
OPEN - ProbingOPEN - Probing
CLOSED / LEADINGCLOSED / LEADING
ListenListenListenListen
How is your business this month? How is your business this month?
Why do you think that is?Why do you think that is?
What do you mean by that?What do you mean by that?
So what you are saying is…..So what you are saying is…..
Questioning - Funnelling Your QuestionsQuestioning - Funnelling Your QuestionsQuestioning - Funnelling Your QuestionsQuestioning - Funnelling Your Questions
SpecificSpecific
GeneralGeneral
2 EARS : 1 MOUTH - 2 EARS : 1 MOUTH - USE IN PROPORTIONUSE IN PROPORTION2 EARS : 1 MOUTH - 2 EARS : 1 MOUTH - USE IN PROPORTIONUSE IN PROPORTION
ListenListenListenListen
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Listening - SummaryListening - SummaryListening - SummaryListening - Summary
Listen to understand not contradictListen to understand not contradict
Show by your manner / body language that you are listeningShow by your manner / body language that you are listening
Assume that what the other person is saying is importantAssume that what the other person is saying is important
Take note (or notes) of what is said - do not ignore or disregard itTake note (or notes) of what is said - do not ignore or disregard it
Check your understanding by playing back what you think you Check your understanding by playing back what you think you heard!heard!
Summarize!Summarize!
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Securing The ResultSecuring The ResultSecuring The ResultSecuring The Result
The close is the critical part of the presentation because we are asking for the The close is the critical part of the presentation because we are asking for the decisiondecision
Many people are nervous about closing because the buyer may say No!Many people are nervous about closing because the buyer may say No!
The close can be:The close can be: Your proposalYour proposal Your suggested actionYour suggested action Your “Next Steps”Your “Next Steps” ““Time Out”Time Out”
lwayslways
ee
losinglosing
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KKeep calmeep calm -- Deal with the facts not the emotionDeal with the facts not the emotion
LListenisten -- Use active listening skillsUse active listening skills
AAcknowledgecknowledge -- Don't agreeDon't agree
Show empathy not sympathyShow empathy not sympathy
PProberobe -- Use funneling questions to understand the Use funneling questions to understand the
issue and determine others issue and determine others
DDefineefine -- Restate the objection back to the buyer. "So Restate the objection back to the buyer. "So
what you are saying is ......"what you are saying is ......"
OOvercomevercome -- Misunderstanding Misunderstanding == overcomeovercome
Real objectionReal objection == outweighoutweigh
CCloselose -- Get a resultGet a result
Objection HandlingObjection HandlingObjection HandlingObjection Handling
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Handling ObjectionsHandling ObjectionsHandling ObjectionsHandling Objections
QuestionQuestionQuestionQuestionConfirmConfirm
Paraphrase &Paraphrase &EmpathizeEmpathize
Paraphrase &Paraphrase &EmpathizeEmpathize
Share ConcernShare Concern
True?True?True?True? False?False?False?False?
QuestionQuestionQuestionQuestionClassifyClassify
ClarifyClarify
JustifiedJustifiedJustifiedJustifiedUnjustifiedUnjustifiedUnjustifiedUnjustified
QuestionQuestionQuestionQuestion
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Effective Selling Reduces The Need To NegotiateEffective Selling Reduces The Need To NegotiateEffective Selling Reduces The Need To NegotiateEffective Selling Reduces The Need To Negotiate
Des
ire
To
Bu
yD
esir
e T
o B
uy
Effective SellingEffective Selling
1010
99
88
77
66
55
44
33
22
11
00 11 22 33 44 55 66 77 88 101099
No Buy ZoneNo Buy Zone
Offering ZoneOffering Zone
Negotiation ZoneNegotiation Zone
Negotiation Free ZoneNegotiation Free ZoneNegotiation Free ZoneNegotiation Free Zone
Sta
rt A
gai
nS
tart
Ag
ain
Su
cces
s A
t A
Pri
ceS
ucc
ess
At
A P
rice
Su
cces
s W
ith
S
ucc
ess
Wit
h
Co
nd
itio
ns
Co
nd
itio
ns
Per
fec
t S
itu
atio
nP
erfe
ct
Sit
uat
ion
Per
fec
t S
itu
atio
nP
erfe
ct
Sit
uat
ion
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Can You Win All Of The Time?Can You Win All Of The Time? Can You Win All Of The Time?Can You Win All Of The Time?
WinWinWinWinWinWinWinWin
OpeningOpening
stancestance
SellerSellerSellerSeller
TradableTradableVariablesVariables
Cost / ValueCost / Value
TradableTradableVariablesVariables
Cost / ValueCost / ValueSeller’s actual Seller’s actual stancestance
Buyer’s actual Buyer’s actual stancestance
$ $
Zone of agreementZone of agreement
BuyerBuyerBuyerBuyer
OpeningOpening
stancestancePoint of Point of AgreementAgreement
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Where our power liesWhere our power liesWhere our power liesWhere our power lies Where the customer power liesWhere the customer power liesWhere the customer power liesWhere the customer power lies
What we need to doWhat we need to doWhat we need to doWhat we need to do
Those things we can emphasize Those things we can emphasize in our selling / negotiationin our selling / negotiation
Those things our customer will use Those things our customer will use against us - and we should plan to against us - and we should plan to overcomeovercome
Our realistic assessment of the Our realistic assessment of the relevant positionsrelevant positions
Where the balance of power liesWhere the balance of power liesWhere the balance of power liesWhere the balance of power lies
Things we must do to maintain or Things we must do to maintain or change our positionchange our position
Power AnalysisPower AnalysisPower AnalysisPower Analysis
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VariablesVariablesVariablesVariables
Variables are anything that has the potential to be included in Variables are anything that has the potential to be included in the negotiationthe negotiation
Some variables are non tradableSome variables are non tradable You cannot change that element of the proposition at that You cannot change that element of the proposition at that
moment in timemoment in time
Others are tradableOthers are tradable You could alter elements of proposition in return for You could alter elements of proposition in return for
somethingsomething
Which of your variables are non tradable or tradable?Which of your variables are non tradable or tradable?
Which of your customer’s variables are non tradable or Which of your customer’s variables are non tradable or tradable?tradable?
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Shopping ListsShopping ListsShopping ListsShopping Lists
What is a shopping list?
What is on the customer’s shopping list?
What is on your shopping list?
How similar / different are they?
What do you need to do?
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Focus on the overall cost Focus on the overall cost
How much can you afford to trade?How much can you afford to trade?
What must you achieve as a minimum?What must you achieve as a minimum?
What items are high value to your customer / low cost to you?What items are high value to your customer / low cost to you?
What items are high value to you / low cost to the customer?What items are high value to you / low cost to the customer?
Focus on the overall cost Focus on the overall cost
How much can you afford to trade?How much can you afford to trade?
What must you achieve as a minimum?What must you achieve as a minimum?
What items are high value to your customer / low cost to you?What items are high value to your customer / low cost to you?
What items are high value to you / low cost to the customer?What items are high value to you / low cost to the customer?
Cost / Benefit AnalysisCost / Benefit AnalysisCost / Benefit AnalysisCost / Benefit Analysis
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Skills And Techniques Within The NegotiationSkills And Techniques Within The NegotiationSkills And Techniques Within The NegotiationSkills And Techniques Within The Negotiation
QuestionsQuestions -- Open: What are the key issues? Why do you say that?Open: What are the key issues? Why do you say that?
SummarizingSummarizing -- My understanding of the situation is X, Y, Z. Is My understanding of the situation is X, Y, Z. Is
there anything else?there anything else?
RhetoricalRhetorical -- So if we can agree on this, then can we proceed?So if we can agree on this, then can we proceed?
ListeningListening -- DO NOT INTERRUPT OR REACT to demandsDO NOT INTERRUPT OR REACT to demands
-- Avoid “Yes but…”Avoid “Yes but…”
ProbingProbing -- What do you mean by that?What do you mean by that?
ParkingParking -- “Putting that to one side for a moment”“Putting that to one side for a moment”
Note takingNote taking -- Get everything downGet everything down
It is critical you understand all the issues before reactingIt is critical you understand all the issues before reacting
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Do not give without getting... Do not give without getting...
If you... Then IIf you... Then IDo not give without getting... Do not give without getting...
If you... Then IIf you... Then I
Ensure objections are handled, and not mistaken for variables to be tradedEnsure objections are handled, and not mistaken for variables to be traded
Try and adhere to the pre-prepared list of tradable variablesTry and adhere to the pre-prepared list of tradable variables
Emphasize value of your variables Emphasize value of your variables
Devalue customer variablesDevalue customer variables
Trade concessions grudgingly - Make it ToughTrade concessions grudgingly - Make it Tough
Keep sight of overall picture - Don't get picked offKeep sight of overall picture - Don't get picked off
Avoid confrontation - Win/WinAvoid confrontation - Win/Win
Take notesTake notes
Exchanging VariablesExchanging VariablesExchanging VariablesExchanging Variables
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Negotiation Do’s And Don’tsNegotiation Do’s And Don’tsNegotiation Do’s And Don’tsNegotiation Do’s And Don’ts
DO'SDO'S DON'TSDON'TS
Remember - Negotiation is the Act of process of Remember - Negotiation is the Act of process of Bargaining to reach a mutually acceptable agreement or Bargaining to reach a mutually acceptable agreement or objectiveobjectiveAim HighAim HighUnderstand the power balanceUnderstand the power balanceNegotiate with people who are able to negotiate with youNegotiate with people who are able to negotiate with youAsk lots of questionsAsk lots of questionsBe patient - Time can be powerBe patient - Time can be powerEmpathizeEmpathizeKeep communicating to advance relationships and Keep communicating to advance relationships and negotiation objectivesnegotiation objectivesAvoid confrontationAvoid confrontationDisagree from the devils advocate position. (use Disagree from the devils advocate position. (use questioning)questioning)Give, some of the timeGive, some of the timeKnow when to leave well alone. (the use of silence)Know when to leave well alone. (the use of silence)Talk company strategyTalk company strategyTake notesTake notesExpect the unexpectedExpect the unexpectedRehearse your case (always)Rehearse your case (always)Maximize the value of your concessions minimize the value Maximize the value of your concessions minimize the value of the buyersof the buyersRespect confidences given in NegotiationRespect confidences given in NegotiationEnd Negotiations positively / Think Win/WinEnd Negotiations positively / Think Win/Win
Give concessions without receiving concessions backGive concessions without receiving concessions backCreate precedents - without considering the long term.Create precedents - without considering the long term.Negotiate on areas over which you have no control or Negotiate on areas over which you have no control or influenceinfluenceTrade single points / Get picked offTrade single points / Get picked offRush or PanicRush or PanicDeadlockDeadlockStop thinking / Make assumptionsStop thinking / Make assumptionsBe complacentBe complacentKeep chasing lost causesKeep chasing lost causesTalk Co. objectivesTalk Co. objectivesCompromise your ultimate objectivesCompromise your ultimate objectivesRelax your GuardRelax your GuardUnder estimate othersUnder estimate othersLet the buyer think there's moreLet the buyer think there's moreBe afraid to walk awayBe afraid to walk away
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1. If you … then I
2. Plan
3. Sell More Negotiate Less
4. Deal with facts, not emotion
5. Provide many options
6. Win / Win
7. Always have variables left - avoid the Columbo
8. Keep sight of big picture - avoid the Salami
9. Remain flexible and be creative
10. Know your walk away point
The 10 Negotiation CommandmentsThe 10 Negotiation CommandmentsThe 10 Negotiation CommandmentsThe 10 Negotiation Commandments
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Focus On Developing Long-Term RelationshipsFocus On Developing Long-Term RelationshipsFocus On Developing Long-Term RelationshipsFocus On Developing Long-Term Relationships
11 22 33 44 55 66 77 88 99 1010
CompetitiveCompetitive CollaborationCollaboration
TT RR UU SS TTTT AA CC TT II CC SS
Co-operativeCo-operative
CompetitiveCompetitiveCompetitiveCompetitive TargetTargetTargetTargetDevelop relationshipDevelop relationship
Through long term behaviorThrough long term behavior
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Understand the buyer’s tactics – know your responseUnderstand the buyer’s tactics – know your response
Exaggerated demandsExaggerated demands
SalamiSalami
SilenceSilence
TimeTime
StonewallStonewall
Good guy / bad guyGood guy / bad guy
Higher authorityHigher authority
Negotiation TacticsNegotiation TacticsNegotiation TacticsNegotiation Tactics
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Understand the buyer’s tactics – know your responseUnderstand the buyer’s tactics – know your response
Power of the written wordPower of the written word
Personal attackPersonal attack
ColumboColumbo
Red herringRed herring
Funny moneyFunny money
Selective listeningSelective listening
Negotiation TacticsNegotiation TacticsNegotiation TacticsNegotiation Tactics
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Understand the buyer’s tactics – know your responseUnderstand the buyer’s tactics – know your response
Selective memorySelective memory
CompetitionCompetition
The viceThe vice
Add onsAdd ons
PrecedentsPrecedents
FlinchingFlinching
InventionInvention
Negotiation TacticsNegotiation TacticsNegotiation TacticsNegotiation Tactics
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Your TacticsYour TacticsYour TacticsYour Tactics
Never give a concession – trade it (reluctantly)Never give a concession – trade it (reluctantly)
Make your concessions Make your concessions seem bigger than they are!…seem bigger than they are!…
Make it seem as if it is hurtingMake it seem as if it is hurting
Even if it is easy to give make it seem difficult - and make sure you ask Even if it is easy to give make it seem difficult - and make sure you ask them for something in returnthem for something in return
‘‘If you then I’If you then I’
500lbs500lbs
5lbs5lbs
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““Never approach a salesperson with enthusiasm”Never approach a salesperson with enthusiasm”
"Always have a negative reaction to a first offer""Always have a negative reaction to a first offer"
"Always ask for the impossible""Always ask for the impossible"
““Never accept the first offer"Never accept the first offer"
"Tell them they will "have to do much better than that""Tell them they will "have to do much better than that"
"Always be someone's second fiddle""Always be someone's second fiddle"
““Be intelligent : play the fool"Be intelligent : play the fool"
A Major Retailer’s Approach To Buying And NegotiatingA Major Retailer’s Approach To Buying And NegotiatingA Major Retailer’s Approach To Buying And NegotiatingA Major Retailer’s Approach To Buying And Negotiating
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"Never come to an agreement without claiming something in return""Never come to an agreement without claiming something in return"
"Always be ready to break off discussions""Always be ready to break off discussions"
"Play good cop / bad cop""Play good cop / bad cop"
"Use false pretexts""Use false pretexts"
"Apply pareto's principle""Apply pareto's principle"
"Don't bury yourself in deadlock""Don't bury yourself in deadlock"
A Major Retailer’s Approach To Buying And NegotiatingA Major Retailer’s Approach To Buying And NegotiatingA Major Retailer’s Approach To Buying And NegotiatingA Major Retailer’s Approach To Buying And Negotiating
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““Never approach a salesperson with enthusiasm”Never approach a salesperson with enthusiasm”““Never approach a salesperson with enthusiasm”Never approach a salesperson with enthusiasm”
This recommendation may seem obvious. It is however seldom This recommendation may seem obvious. It is however seldom respected. You only have to watch the way most customers address car respected. You only have to watch the way most customers address car dealers, especially when they are regular clients or when they have dealers, especially when they are regular clients or when they have already made their choice!already made their choice!
Remember that a salesperson, whoever they are, is paid to sell! Why Remember that a salesperson, whoever they are, is paid to sell! Why make it easier for them by showing that you have made your choice? make it easier for them by showing that you have made your choice? Make them deserve their salary, force them to put some guts into it.Make them deserve their salary, force them to put some guts into it.
Don’t forget: during the first hours of negotiation, always show Don’t forget: during the first hours of negotiation, always show skepticism, lack of enthusiasm or indecisionskepticism, lack of enthusiasm or indecision
A Major Retailer’s Approach To Buying And NegotiatingA Major Retailer’s Approach To Buying And NegotiatingA Major Retailer’s Approach To Buying And NegotiatingA Major Retailer’s Approach To Buying And Negotiating
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"Always have a negative reaction to a first offer""Always have a negative reaction to a first offer""Always have a negative reaction to a first offer""Always have a negative reaction to a first offer"
These tactics can be extremely effective if used systematically every time you are These tactics can be extremely effective if used systematically every time you are quoted a price. Never acknowledge the offer to be ‘fair’, ‘interesting’, ‘cheaper than quoted a price. Never acknowledge the offer to be ‘fair’, ‘interesting’, ‘cheaper than the competitor's’. On the contrary, react in a visible manner showing your surprise. the competitor's’. On the contrary, react in a visible manner showing your surprise. Be careful, lack of reaction on your part can also be dangerous. By agreeing with Be careful, lack of reaction on your part can also be dangerous. By agreeing with the salesperson, you are implicitly admitting that the price is an acquired element of the salesperson, you are implicitly admitting that the price is an acquired element of the negotiation. You have left yourself with only marginal parameters to fight for the negotiation. You have left yourself with only marginal parameters to fight for such as availability, after-sales service etc. Get used to criticizing price quotations such as availability, after-sales service etc. Get used to criticizing price quotations aloud. The use of phrases such as ‘What?’ or ‘You must be joking’ put immediate aloud. The use of phrases such as ‘What?’ or ‘You must be joking’ put immediate pressure on the opposing team who then has to justify its positionpressure on the opposing team who then has to justify its position
A Major Retailer’s Approach To Buying And NegotiatingA Major Retailer’s Approach To Buying And NegotiatingA Major Retailer’s Approach To Buying And NegotiatingA Major Retailer’s Approach To Buying And Negotiating
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‘‘Always ask for the impossible’Always ask for the impossible’‘‘Always ask for the impossible’Always ask for the impossible’
During your first proposals don't hesitate to ask for more than what you expect. On During your first proposals don't hesitate to ask for more than what you expect. On the one hand, although it is excessive, your request may in fact fit in with what the the one hand, although it is excessive, your request may in fact fit in with what the other party is ready to release. Above all, keep a very large negotiation margin which other party is ready to release. Above all, keep a very large negotiation margin which you can break into if required to show your goodwill and give your opponent the you can break into if required to show your goodwill and give your opponent the impression that they have also managed the negotiation with successimpression that they have also managed the negotiation with success
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‘‘Never accept the first offer’Never accept the first offer’‘‘Never accept the first offer’Never accept the first offer’
Never jump at the first proposal, even if it is fantastic. It is sometimes difficult to Never jump at the first proposal, even if it is fantastic. It is sometimes difficult to act like this. Suppose for instance, that your house has been on sale for six act like this. Suppose for instance, that your house has been on sale for six months, that you are beginning to despair and then suddenly you receive an months, that you are beginning to despair and then suddenly you receive an offer corresponding to your expectation! It would be a mistake to jump at it and offer corresponding to your expectation! It would be a mistake to jump at it and conclude immediately. To accept in such a way the first offer is frustrating for conclude immediately. To accept in such a way the first offer is frustrating for both parties. Indeed, you will say to yourself that you could in fact probably both parties. Indeed, you will say to yourself that you could in fact probably have got more for it. Conversely, the buyer will bitterly regret not having asked have got more for it. Conversely, the buyer will bitterly regret not having asked for less and will even wonder whether such a quick agreement does not hide for less and will even wonder whether such a quick agreement does not hide some latent defects. In fact, you left no chance for negotiation and thereby gave some latent defects. In fact, you left no chance for negotiation and thereby gave rise to dissatisfaction on both sides!rise to dissatisfaction on both sides!
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‘‘Tell them they will ‘have to do much better than that’’Tell them they will ‘have to do much better than that’’‘‘Tell them they will ‘have to do much better than that’’Tell them they will ‘have to do much better than that’’
Here are seven words that can change the course of negotiations. This technique is well-Here are seven words that can change the course of negotiations. This technique is well-known by professionals, but you can occasionally use it, in particular when you are known by professionals, but you can occasionally use it, in particular when you are quoted a price and it is your turn to send the ball and you want to return it immediately to quoted a price and it is your turn to send the ball and you want to return it immediately to the opposite side.the opposite side.
At the time when Henry Kissinger was Nixon's Government Secretary of State, he asked At the time when Henry Kissinger was Nixon's Government Secretary of State, he asked his Principal Private Secretary (Cabinet Minster) to draft the analysis of the Vietnam his Principal Private Secretary (Cabinet Minster) to draft the analysis of the Vietnam conflict and suggest a diagnosis. His deputy came back a few weeks later with a conflict and suggest a diagnosis. His deputy came back a few weeks later with a complete, well documented and precise file. However, two days later, the file was back complete, well documented and precise file. However, two days later, the file was back on its author's desk with the following laconic note : "You will have to do much better on its author's desk with the following laconic note : "You will have to do much better than that. H.K". The Cabinet Minster worked on each page of the report adding notes than that. H.K". The Cabinet Minster worked on each page of the report adding notes which took into account all the aspects of the situation. He then sent the file back to which took into account all the aspects of the situation. He then sent the file back to Kissinger. A few days later, the report came back with the same laconic note. This time Kissinger. A few days later, the report came back with the same laconic note. This time the writer strives harder than ever. He adds photos, graphics, advice from several the writer strives harder than ever. He adds photos, graphics, advice from several experts and plucking up the courage, handed it himself to Kissinger.experts and plucking up the courage, handed it himself to Kissinger.
"Please Sir, he said, don't send this file back to me yet again. It is impossible to improve "Please Sir, he said, don't send this file back to me yet again. It is impossible to improve it, I cannot do better." "In this case, Kissinger replied, I shall read it".it, I cannot do better." "In this case, Kissinger replied, I shall read it".
A Major Retailer’s Approach To Buying And NegotiatingA Major Retailer’s Approach To Buying And NegotiatingA Major Retailer’s Approach To Buying And NegotiatingA Major Retailer’s Approach To Buying And Negotiating
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‘‘Always be someone's second fiddle’Always be someone's second fiddle’‘‘Always be someone's second fiddle’Always be someone's second fiddle’
An experienced negotiator will never seem to be the one who makes decisions, even An experienced negotiator will never seem to be the one who makes decisions, even if they are the President of a Multinational company. Young professionals full of their if they are the President of a Multinational company. Young professionals full of their new responsibilities do the very opposite and often make the mistake of showing that new responsibilities do the very opposite and often make the mistake of showing that they have a free hand to settle the deal. This attitude can set you back seriously. they have a free hand to settle the deal. This attitude can set you back seriously. Indeed, if you are the one who gives the final decision, you agree verbally to your Indeed, if you are the one who gives the final decision, you agree verbally to your opponent's offer and therefore you have no means of escape. It is always a good opponent's offer and therefore you have no means of escape. It is always a good thing, after you have negotiated, to indicate that you have to refer to an authority thing, after you have negotiated, to indicate that you have to refer to an authority (boss, partners, board of directors before confirming the deal). This leaves no time (boss, partners, board of directors before confirming the deal). This leaves no time for reflection and even the possibility to call it all in question again with the excuse for reflection and even the possibility to call it all in question again with the excuse that they do not agree!that they do not agree!
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‘‘Be intelligent: play the fool’Be intelligent: play the fool’‘‘Be intelligent: play the fool’Be intelligent: play the fool’
I like playing the fool. It is a sure way to get rid of door-to-door and other Christmas I like playing the fool. It is a sure way to get rid of door-to-door and other Christmas Calendar salespeople. But it is also an excellent way to obtain what you want. The Calendar salespeople. But it is also an excellent way to obtain what you want. The more foolish you are, the better off you will be. Get them to explain it all to you, say more foolish you are, the better off you will be. Get them to explain it all to you, say that you don't understand. The other party will indeed take pity on you and make that you don't understand. The other party will indeed take pity on you and make concessions. More, playing the fool helps bore down the opponents assurances. concessions. More, playing the fool helps bore down the opponents assurances. Suppose that a photocopier salesperson sets off on a long demonstration of the Suppose that a photocopier salesperson sets off on a long demonstration of the qualities of their machine, with documents supporting their speech, and that after a qualities of their machine, with documents supporting their speech, and that after a quarter of an hour confession that you didn't understand a thing and you would like quarter of an hour confession that you didn't understand a thing and you would like them to start all over again. Nothing like it to take the edge off a super salesperson's them to start all over again. Nothing like it to take the edge off a super salesperson's eagerness and take the advantage.eagerness and take the advantage.
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‘‘Never come to an agreement without claiming something in return’Never come to an agreement without claiming something in return’‘‘Never come to an agreement without claiming something in return’Never come to an agreement without claiming something in return’
Each time you are asked to make a gesture, insist on something in return: "If I do that Each time you are asked to make a gesture, insist on something in return: "If I do that for you, what will you do for me?" This attitude will enable you to obtain profits without for you, what will you do for me?" This attitude will enable you to obtain profits without really having made any effort to ask for them. It gives value to the concession you are really having made any effort to ask for them. It gives value to the concession you are making. Finally, it discourages the opposite party from making further requirements, making. Finally, it discourages the opposite party from making further requirements, since they now know that you will automatically require something in returnsince they now know that you will automatically require something in return
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‘‘Always be ready to break off discussions’Always be ready to break off discussions’‘‘Always be ready to break off discussions’Always be ready to break off discussions’
If you are not satisfied with the contract that you are just about to settle, remember If you are not satisfied with the contract that you are just about to settle, remember that it is always possible to quit the negotiation. There again, the object is to put that it is always possible to quit the negotiation. There again, the object is to put pressure on the opposite party, who is then set before a dilemma : bring you back pressure on the opposite party, who is then set before a dilemma : bring you back or take the risk of never making the deal. It is amusing to note that you are the one or take the risk of never making the deal. It is amusing to note that you are the one taking the initiative to quit, but it is your opponent's responsibility to see the taking the initiative to quit, but it is your opponent's responsibility to see the discussions fall through. Leaving the room can also be part of a bluff strategy. In discussions fall through. Leaving the room can also be part of a bluff strategy. In fact such a maneuver is successful in most casesfact such a maneuver is successful in most cases
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Play ‘the goodies and the baddies’Play ‘the goodies and the baddies’Play ‘the goodies and the baddies’Play ‘the goodies and the baddies’
This technique is well-known by the regular police station attendants and can be This technique is well-known by the regular police station attendants and can be used during a negotiation. All you have to do is choose the roles and stick to them. used during a negotiation. All you have to do is choose the roles and stick to them. In fact the ‘baddy’ need not even exist, nor do they need to know that they have In fact the ‘baddy’ need not even exist, nor do they need to know that they have been cast for the part. Thus, it is best for a young negotiator to dress up as the been cast for the part. Thus, it is best for a young negotiator to dress up as the ‘good guy’ who understands the concerns and the problems of the opposite party. ‘good guy’ who understands the concerns and the problems of the opposite party. Unfortunately, they have above them (see Be Intelligent : Play the Fool) this terrible, Unfortunately, they have above them (see Be Intelligent : Play the Fool) this terrible, obstinate, mean department manager who will not understand. This tactic enables obstinate, mean department manager who will not understand. This tactic enables two things. It puts the negotiator on the side of their opponent. It also allows a two things. It puts the negotiator on the side of their opponent. It also allows a series of exchanges which often end up in profitable concessions. If one tried this series of exchanges which often end up in profitable concessions. If one tried this tactic on you, remember that the game consists in dealing directly with the ‘baddy’tactic on you, remember that the game consists in dealing directly with the ‘baddy’
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‘‘Use false pretexts’Use false pretexts’‘‘Use false pretexts’Use false pretexts’
Here is an example. You are just about to sell a machine to another company, and Here is an example. You are just about to sell a machine to another company, and when you quote your last price, you hear the following answer : "Your offer is when you quote your last price, you hear the following answer : "Your offer is interesting, except on one point. Delivery will take place on August 1st. But we need interesting, except on one point. Delivery will take place on August 1st. But we need the machine by June 1the machine by June 1stst". Depressed, you return to your office knowing very well that ". Depressed, you return to your office knowing very well that it is impossible to comply with such a delivery date. The next day, you pick up your it is impossible to comply with such a delivery date. The next day, you pick up your phone and suggest an exceptional 2% discount as compensation. You have just phone and suggest an exceptional 2% discount as compensation. You have just been victim of a false pretext. In fact, the delivery date was not a problem and the aim been victim of a false pretext. In fact, the delivery date was not a problem and the aim of the person you were talking to was to make you bring the price down. Never lose of the person you were talking to was to make you bring the price down. Never lose sight of what is really at stake in the negotiation and don't be distracted by false sight of what is really at stake in the negotiation and don't be distracted by false arguments. On the other hand, try this tactic yourselfarguments. On the other hand, try this tactic yourself
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‘‘Apply Pareto's principle’Apply Pareto's principle’‘‘Apply Pareto's principle’Apply Pareto's principle’
In a negotiation, up to 80% of the concessions take place during the last stages (the In a negotiation, up to 80% of the concessions take place during the last stages (the last 20% of the total time of the negotiation). Thus, requirements submitted at the last 20% of the total time of the negotiation). Thus, requirements submitted at the beginning have few chances to be accepted. On the contrary, it is in your interest to beginning have few chances to be accepted. On the contrary, it is in your interest to ask for concessions just before the end of the discussions. In the same way, it is in ask for concessions just before the end of the discussions. In the same way, it is in your interest to evade all inherent problems in any type of negotiations, so as to bring your interest to evade all inherent problems in any type of negotiations, so as to bring them up only at the end. Take advantage as you are approaching the conclusion: to them up only at the end. Take advantage as you are approaching the conclusion: to raise questions and put forward problems which stand in the way of an agreement. raise questions and put forward problems which stand in the way of an agreement. The chances are that the other party will then make further concessionsThe chances are that the other party will then make further concessions
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‘‘Don't bury yourself in deadlock’Don't bury yourself in deadlock’‘‘Don't bury yourself in deadlock’Don't bury yourself in deadlock’
It often happens that negotiations have a hitch on some major or minor problem. In It often happens that negotiations have a hitch on some major or minor problem. In this case, both parties tend to throw the battle energy, arguments and even abuse, with this case, both parties tend to throw the battle energy, arguments and even abuse, with the risk of making it all fail. If you find yourself in such a situation, don't hesitate to the risk of making it all fail. If you find yourself in such a situation, don't hesitate to evade the problem and suggest the discussion turns on other points. Once you have evade the problem and suggest the discussion turns on other points. Once you have reached an agreement on these points, you can always return to the problem but this reached an agreement on these points, you can always return to the problem but this time in a much more favorable atmosphere. You could say, for instance : "I think this time in a much more favorable atmosphere. You could say, for instance : "I think this is the maximum we can get to at this stage, why not settle this other point?" Another is the maximum we can get to at this stage, why not settle this other point?" Another alternative to this tactic is to change the conversation to a different angle as soon as alternative to this tactic is to change the conversation to a different angle as soon as you sense the tone getting harsheryou sense the tone getting harsher
Each one of these tactics is meant to give you the power that you don't necessarily Each one of these tactics is meant to give you the power that you don't necessarily have during a negotiation at the beginning of the discussions. However, remember have during a negotiation at the beginning of the discussions. However, remember that the most successful negotiations are those which turn out profitable for both that the most successful negotiations are those which turn out profitable for both parties. The boundary is often undefined between mere defense of one's interest and parties. The boundary is often undefined between mere defense of one's interest and maneuveringmaneuvering
It is up to you to move across, but only when you yourself are a victim of maneuveringIt is up to you to move across, but only when you yourself are a victim of maneuvering
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Structured Selling – Preparation and Review SheetStructured Selling – Preparation and Review SheetStructured Selling – Preparation and Review SheetStructured Selling – Preparation and Review Sheet
Summarize The Situation
Current conditionCustomer needsLimitationsOpportunitiesConfirmQuestions
Summarize The Situation
Current conditionCustomer needsLimitationsOpportunitiesConfirmQuestions
State The Idea
Simple, clear, concise?Does it meet the needs?Does it suggest action?Indicate benefits match needs with value
State The Idea
Simple, clear, concise?Does it meet the needs?Does it suggest action?Indicate benefits match needs with value
Explain How It Works
Who does what, when, where?Give assurance it's practicalAnticipate questions and objectionsEnsure understandingBenefit matches needs
Explain How It Works
Who does what, when, where?Give assurance it's practicalAnticipate questions and objectionsEnsure understandingBenefit matches needs
Reinforce Key Benefits
Reinforce that our idea gives him what he needsCommercial Proposition
Reinforce Key Benefits
Reinforce that our idea gives him what he needsCommercial Proposition
Close - Suggest An Easy Next Step
Offer a choiceGet a decisionSuggest something we can do
Close - Suggest An Easy Next Step
Offer a choiceGet a decisionSuggest something we can do
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