Dealing with Negotiation in Sales Jump start pack workshop – 4
Dealing with Negotiation in Sales
Jump start pack workshop – 4
Jumpstart workshops series
• Sales Prospecting and Sales Pipeline Management
• Sales Presentations
• Sales Objections & Deal Closure
• Sales Negotiations and Follow-up
• Value Propositions and Exec Summary
• Capture Planning
• Bid Governance & Review Management
• Team Capability Assessment
• Digital Marketing Fundamentals
• Marketing Gameplan
• LinkedIn Conversations Brand Building
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https://baachuscribble.com/live-workshops/
The Sales Process
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The sales process outlines the steps to find potential customers, close the sale, and retain clients for repeat business and referrals in the future. The sales process includes the following stages:
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Prospecting Preparation Approach PresentationHandling
ObjectionsClosing Follow Up
What is Negotiation in the Sales Process?
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The Selling process identifies the fit between the seller’s offering and what the buyer is seeking.
Negotiation, on the other hand, is a part of the selling continuum, involving the process of agreeing the terms of the deal.
Every moment of business development and selling involves some amount of negotiating.
Why is Effective Negotiation Important?
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Don’t underestimate the importance of good negotiation skills. Effective Good negotiation can help you with:
Improving profitability
Competing on value rather than price
Enhancing customer perception
Why is Effective Negotiation Important?
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When you undertake effective negotiations, you are able to:
Increase the deal size
Reduce discounting
Improving win:loss ratios
Realize greater value (proposed vs. closed)
Key Negotiation Styles
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Key Negotiation Styles
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Soft NegotiatorMakes concessions readily in order to reach agreement; looks to avoid personal conflict; wishes for an amicable resolution; may end up exploited and feeling bitter
Principled NegotiatorCreates a win-win deal
Hard NegotiatorFocused on winning; sees negotiation as a contest of wills; may get an equally hard response which harms his relationship with the other side, and exhausts him and his resources
NEGOTIATION STYLES
Key Negotiation Styles – Hard Negotiation
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HardNegotiator
Distrust Others
Seek concession as a condition for the relationship
View participants as adversaries
Hard on the problem and the people
Make Threats
The goal is victory
Mislead about the bottom line Demand one-sided gains in order to agree
Try to win a contest of will Apply pressure
Key Negotiation Styles – Soft Negotiation
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SoftNegotiator
Change position easily
Agreement is the goal
View participants as friends
Trust others; soft on the people and the problem
Make offers
Make concessions to foster relationships
Disclose the bottom line Insist on agreement
Avoid a contest of will Yield to pressure
Key Negotiation Styles – Principled Negotiation
Principled negotiation is an approach to conflict resolution outlined in the book, "Getting to Yes" by Roger Fisher and William Ury, published in 1981
Principled negotiation, is often referred to as creating a "win-win" deal. It takes the all-or-nothing attitude out of the equation, helping you achieve your business objectives and satisfy
the other party’s expectations.
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Principled Negotiation – Fundamental Principles
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Separate People from the Problem
Generate Multiple Options
Focus on Interests
Use Objective Criteria
Fundamental Principles
Principled Negotiation – Fundamental Principles - 1
Separate People from the Problem
The issue being negotiated often gets overshadowed by emotion, communication and
perception. Make sure you separate the people from the issue/problem at hand.
While engaging in negotiations, try to put yourself in the other person’s shoes and empathize
with them. Think of each other as partners not adversaries
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Principled Negotiation – Fundamental Principles - 2
Focus on Interests
Don’t look at the other person’s view on the subject/issue as inferior, instead, aim to have
discussions about common interests.
Identify the interests of each party regarding the issue – asking them why they have a
particular stance.
Number of interests underlie each party’s position - discuss these interests and stay focused
on a solution.
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Principled Negotiation – Fundamental Principles - 3
Generate Multiple Options
Focus on generating lots of options for a possible solution - brainstorming can be an effective
exercise here
When brainstorming, remember to not judge the ideas.
Shortlist the most promising ideas during the evaluation phase.
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Principled Negotiation – Fundamental Principles - 4
Use Objective Criteria
If encountering strong, direct opposition, use objective criteria such as industry statistics, legal
precedent, and scientific studies.
If both sides agree to the validity of the information and view it as a standard they can agree
to, it is objective.
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Principled Negotiation – Handling Obstacles
Deals cold be ruined by use of dirty tricks, power and refusal to use principled negotiation.
Use the four principles of principled negotiation to establish ground rules for the negotiations
When power is an issue, the weaker party should look for a best alternative to a negotiated
agreement (BATNA). BATNA acts as an alternative to bottom-line thinking in which parties
evaluate the worst possible outcome before negotiations start. Decline solutions that would
be worse than BATNA.
When the other party doesn’t use principled negotiating, avoid responding to attacks, direct
them at the problem. Just keep at it.
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Essentials of Effective Negotiation
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Essentials of Effective Negotiation
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ESSENTIALS OF
EFFECTIVE
NEGOTIATION
Use silence to your advantage
Define your absolute bottom line -
define the concessions you are
willing to accept
Don’t put anything in writing till
the conversation is over
Build value in your prospect’s mind to
justify your price
Always negotiate with the decision
maker
Prepare well before negotiations
Know when to walk away
Offer alternatives to cash
discounts that cost you less
How to Handle Adversarial Tactics?
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What are Adversarial Tactics?
Adversarial negotiation tactics work through manipulation. Sometimes, buyers
may adopt use a range of pressure tactics to defeat you and get what they
want.
They are looking to fluster you, hoping you’d make a mistake and eventually
feel pressured into making a concession.
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How to Deal with Adversarial tactics?
Avoid reacting in a way that would escalate the situation. Steer the negotiation
on a more productive path that fosters the relationship.
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Handling Common Adversarial Tactics - 1
False Deadlines
Pressuring you to agree to terms before you are ready.
Approach
Make sure the sales process is not rushed through. If you give in to fast-forwarding through
demonstrations and presentations, you could later on be called out for covering up important
details. Be prepared, and ask necessary questions to check the reality of the deadlines.
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Handling Common Adversarial Tactics - 2
Delaying a decision and ignoring deadlines
This might be aimed at creating anxiety and pressure you to make concessions.
Approach
Find out the actual reason of the delay - follow up and politely communicate that your time is
also important.
Don’t feel pressured to make concessions due to the prospects inaction or lack of movement.
Save yourself by documenting all communications, ensuring deadlines and key action points
from voice mails/emails are noted, along with the consequences of any delays.
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Handling Common Adversarial Tactics - 3
Starting over in the middle of negotiations
Prospects may reverse progress in order to keep and gain position
Approach
In case of any one term being changed, feel free to reopen all the terms - in the interest of a
fair outcome. Both the seller and buyer should feel like winners at the end.
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Handling Common Adversarial Tactics - 4
Surprises
Prospect brings up new issues when you think things are settled
Approach
The prospect may have forgotten to bring something up sooner, however, it could be a sign of
prospective problems.
Refrain from immediately handling the issue - ask for more time, park it until you are
prepared.
Keep in mind: “Never let them see you sweat.” Change the direction of the discussion to delay
your reaction or response.
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Handling Common Adversarial Tactics - 5
Demanding price up front
Prospects may ask you for ballpark price quotes and then hold you to the lower figure.
Approach
Acknowledge his question and state that you want to share the pricing information, but ask
for more information to help you give specific, accurate pricing.
Give information to get information.
You might provide possibilities of high-, medium-, and lower-priced options before you know
what’s to be included in the sale and committing to a price.
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Handling Common Adversarial Tactics - 6
Negotiating the future
Prospects use a possible future deal to bargain for the current deal
Approach
Ask the client for specifics in written, effectively making the future deal a formal part of the
current deal. How you handle this deal, will set parameters for the next one.
Conceding on the current deal could yield a larger opportunity in the future, but, consult your
seniors and other stakeholders before committing.
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Handling Common Adversarial Tactics - 7
Creating an uncomfortable environment
Prospects may try to gain an unfair advantage by ways such as long waiting hours, hot and
uncomfortable room, sunlight in your eyes, no food or break, and changes in negotiators.
Approach
If you can gauge that this is done intentionally, consult with your team/colleagues to validate
that it’s not just you who feels this way.
Straight away ask to change the environment (change seating, adjust the temperature, shift
rooms, etc.)
Don’t fear calling for a break or rescheduling the meeting.29
Handling Common Adversarial Tactics - 8
Suddenly losing interest
Prospects may indicate you are likely to lose the deal, with the aim to gain better terms.
Approach
Do not panic.
Be aware that it could be a tactic, so ask the prospect what changed.
Be patient. Do not nag the prospect, but stay in regular touch, and document your
communications, discussions, key decisions and milestones, and consequences for the sale if
delays persist.
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Handling Common Adversarial Tactics - 9
Outnumbering you
Prospects may attempt intimidation through a large delegation of buyers in the meeting
without informing you in advance.
Approach
Ask for details of attendees’ roles, ahead of the sales meeting - if the deal is likely to affect
multiple functions, it is sensible for the buyer to include his colleagues in the sales meetings.
If the sale is large/complex, expand your BD/sales team accordingly — match numbers with
numbers.
However, if you do end up in a situation where you feel you are being bullied during the
meeting, stand your ground, and try to schedule a follow-up meeting31
Handling Common Adversarial Tactics - 10
Playing dumb
Prospect may try to get you to back down by faking a lack of understanding, awareness,
assumptions, or expectations.
Approach
Do not let the prospect’s “not knowing” to impact your terms.
Don’t amend the deal or make sacrifices due to your client’s lack of attention or attention.
However, since you’re the expert, it is mandatory for you to clearly spell out each step along
with information on pricing, timing, delivery, etc., to avoid any ambiguity or
misunderstanding.32
Handling Common Adversarial Tactics - 11
Using silence
Prospects may use silence to pressures you to concede — the first one to talk after the
price/condition is on the table is usually the first to fold.
Approach
Keep quiet!
Stay silent after you’ve stated your price. Do not offer explanations, or stammer – you may
only giving them material that can be used against you.
Silence is also a weapon you can use.
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Handling Common Adversarial Tactics - 12
The “Broken Record
Prospects may sometimes bombard you with concerns, demands, budgets, limitations, or
expectations.
Approach
Follow the client and be a “broken record” yourself - ask lots of questions until you receive
satisfactory answers.
Acknowledge their concerns but call them out for not answering to your satisfaction. E.g.
“Your concern about ABC is valid, but you still haven’t answered my question. I’m here to help
you, but it seems you either don’t know the answer or don’t want to tell me. Let’s try to
resolve this so we can move on.”34
Handling Common Adversarial Tactics - 13
Using the “Nibble”
Prospects may try to get last-minute concessions.
Approach
Do not drop your guard towards the end of the negotiation when you almost have a deal.
Don’t let that the joy of thinking that the deal is done make you agree to a concession – even
if it seems very small.
Keep this question in mind: “What impact will this have on my profitability and future deals?”
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Conclusion
Negotiation is Unavoidable
Most issues faced during the negotiation process can be handled through clear
communication
Adopt ‘Principled Negotiation’ for mutually beneficial negotiations
View the interaction as a long-term relationship, and not a one-time transaction
Decline anything that is best alternative to a negotiated agreement (BATNA)
Know when to walk away – unreasonable/unprofitable demands and intentional adversarial
tactics
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Sales Follow-Up
Jump start pack – 4
Why is sales follow up important?
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Industry statistics suggest that only 2% (or 1 in 50) deals are struck in the first meeting
Prospects need time to develop a certain level of trust and be convinced that you meet their requirements
A strategic and optimized sales follow-up process is important to get the outcomes you want when pursuing a prospect
When to follow up and how?
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After the Initial
Contact
After Formally
Making the Pitch
After Closing the
Sale
Follow - Up
When to follow up?
When to follow up and how?
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After the Initial Contact
▪ Industry experts say, 80% of sales happen after at least five follow-ups; after initial contact, send follow-up emails/or make calls at strategic times
▪ Anticipate and be prepared to handle the typical objections your prospect may have, to move forward in the process
After Formally Making the Pitch
▪ Appreciate the lead, recognize and restate their pain points, answer any questions that surfaced during the meeting and end your follow-up with a call-to-action
After Closing the Sale
▪ Follow up to build and maintain long term relationships▪ Use this approach: keep a schedule of when to follow up, choose an appropriate method (decide
between face to face, phone or email), reiterate your appreciation and actively ask about any concerns the customer has.
How to follow up?
How often to follow up?
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Ideally, keep following up as many times as necessary until you get a response
If you are reaching out completely cold, i.e. have never had any interaction with the other person, follow up a maximum of six times
If you’ve already had some kind of interaction with the lead but the interaction was not a clear, definite NO, then follow up as long as it takes to get a response
If during the process, someone says they are not interested, leave them alone
Sales follow up: tips
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Schedule and Automate Follow-Ups: Schedule your messages - use CRM or email productivity tools to compose and schedule emails to send at a later date
Keep emails Crisp and Short: Brief, to the point emails are more likely to get you a response
Back up your Claims: Back up your statements with a convincing metric, result or customer testimonial
Don’t Automate Email Content: Refer to templates but don’t blindly follow them, or all your emails will look the same and will lack customization – customers can often tell a “templatized” email.
Avoid Bland Statements: Be direct, referencing to the lead’s pain point and the solution you offer
Stay Human: Treat the lead with the same understanding and respect as you have for friends, colleagues and acquaintances
Jumpstart workshops series
• Sales Prospecting and Sales Pipeline Management
• Sales Presentations
• Sales Objections & Deal Closure
• Sales Negotiations and Follow-up
• Value Propositions and Exec Summary
• Capture Planning
• Bid Governance & Review Management
• Team Capability Assessment
• Digital Marketing Fundamentals
• Marketing Gameplan
• LinkedIn Conversations Brand Building
43
Register your place HERE:
https://baachuscribble.com/live-workshops/
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