Learning outcomes

Understand the sales of this era

Understand the psychology of negotiation
Plan a strategy for successful negotiation
Understand the principle of win-win
negotiations
 What Is Selling?
The face to face meeting with your prospect at
the Intention or Buying level
Getting thereright place, right time, right
person

Remember, while selling you are also

buying
What Do Customers Care About?

THEMSELVES!!

Wants Needs Desires

What Do They Buy?

SOLUTIONS!!
 The Value Equation

Value = Benefit/Cost
The Good
The Bad
The Ugly
Before You Do Anything Else
 Core Principles of Negotiation

BATNA

ZOPA
 BATNA
Defined by Roger Fisher and William Ury as
the Best Alternative To a Negotiated
Agreement
Involves knowing what you will or wont do if
an agreement isnt reached
Helps you gauge when to walk away and when
a deal makes sense

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 ZOPA
Defined as the Zone Of Possible Agreement
The set of agreements that can satisfy both
sides in a negotiation
Assumes overlap of needs and wants to create
a range of acceptable terms

Determine it before you enter into negotiation

Know your Counterparts

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Video Cases
 Negotiation
End body of presentation with trial close
If you get a yes--stop selling and start
writing
If you get a no ask why not
Answer objection, negotiate, and trial close
again
 The Three Phases

Exchanging Information

Bargaining

Closing
 Steps to Negotiation

1. 4.
2. Preparation 3. Communication 5. Commitment
Analysis Proposal

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 Skills for Successful Negotiation

Effective speaking
Selfconfidence
Effective listening Emotional intelligence
A sense of humor Persistence

A positive attitude Patience

Respect Creativity
Personal Confidence Leads to
Successful Negotiations

You are the greatest asset to your company

When you are buying, you are also selling

Confidence is not the same as arrogance. Arrogance creates

barriers; confidence creates communication.

Remain positive and pro-active.

Dont over celebrate

The Three Ts of Negotiating

T rust

T ime

T actics
 Close
Either/or would you like delivery on Friday
or next Monday?
Is that the only thing that is stopping you
from buying?
Always, always ask for the order
Outcomes

23
 Important Tips
Listenlisten more than you talk
Never, never talk over the client-listen to what
he says
Control the flow
Always ask for the order - if you do nothing
else ask for the order
Ask for referrals
 Be Careful Where You Look
Avoid Negotiations over phone
Confidence Sells!
Position Yourself as a Leader
Agree on Something
Know the Influencer
Sell With Your Voice
Quit Being a Salesperson
Barriers to Negotiation
Communication Barriers
Cultural and Gender Barriers
Lack of Trust
Lack of Information
Battle of wills
 Overcoming Barriers
Work through the planning process to
understand all issues and people involved.
Anticipate questions and problems the other
side may have.
Set clear expectations at the start.
Use win-win tactics to counter tactics that are
more adversarial.

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 Follow-up
Sold: Didnt sell:
Thank Thank
Restate terms etc Restate need and
Youll stay in the feature/benefit
loop Leave a way back in
 Customer Service
Answer the phone
No voice menus--no lengthy holds
Resolve problems now
Honor your time frames
Complaints are your friendyou get to show
how good you really are
 Handling Complaints
Dont argue
Apologize even if youre not wrong
Restate problem
Give time frame to resolution
If you cant meet time, call and extend
Let them know you care and that you are
involved
 Jerince Peter
Transformation Consultant
9003109299
jerincepeter@outlook.com
 Understanding Power when
Negotiating
Good negotiators discern where the power is
when negotiating. What is the ultimate gain the
person with whom you are negotiating wants?
When you know this, you then have the power to
alter your offer to capitalize on their expectation.
Where does your power lie?
Where does the other persons power lie?
Where else can power be found?
What do I need to do?
Avoid Negotiating Over the Phone
Avoid negotiating over the phone. Use it as a
means of introducing, following-up, or confirming
infor-mation. Its impossible to truly read body
language over the phone, so you lose a major
negotiating tool. A phone call, however, is an
excellent way to introduce a new idea upon
which you would like to receive some feedback.
Many times, it will allow criticism to be gained in
a less threatening manner than if it were to occur
in a traditional sales call.
 Negotiation Checklist to Ensure a
Successful Outcome
1. Never negotiate with anyone who is not qualified to negotiate.
2. Never put things into writing unless youre prepared to live with them.
3. Always have room to give something the other person will deem as a perceived benefit.
4. Know when to walk away and be confident in doing so.
5. Know at least 5 things the other person wants that you can offer.
6. Know at least 5 things you can say that will discount what the other person is offering (price not
included).
7. Always treat the other person with respect and dignity. Negotiate over things and services, not
personal matters.
8. Never enter into a negotiating process until both sides are clear on what is being negotiated.
9. Use the sell / buy approach first. Only move to a negotiating phase if you are unsuccessful.
10. Never offer up options until after youre deadlocked on price and the customer has provided
you with additional information.
11. Always put the negotiated outcome in writing immediately. Do not leave issues open for further
discussion.
12. Upon reaching an agreement, thank the other party, but do not celebrate.
 Creating Bigger Solutions that Satisfy
Both Parties
Knowing the needs and desires of the other party allows
you to present options that can and will be of significant
value to them without costing you anything. Listen to what
the other person is saying. Its even better is to ask them a
question or make a statement that challenges their
thinking.
Statements You Can Make:
It would be nice if we could figure out a way to work
together.
Im sure if we could find a way to work together once,
wed find more even more ways to do so.
In the past, the companies weve worked with in this same
type of situation have become some of our best partners.
 A Person May Say: What It Can Mean to Its not impossible.
You: But, it can be changed to meet this.
We would find it extremely difficult to meet See my boss.
So what's normal?
that deadline. We do negotiate what you get for it.
"Our company is not set up to handle "Our company never negotiates on price.
requests
like this." It's negotiable.
"I am not empowered to negotiate this It's negotiable tomorrow.
price." We only make ex gratia payments.
"It is not our normal practice to break bulk." Different quantity, different price.
"We can discuss that point." They're negotiable.
"We are not prepared to discuss that at this
stage."
"We never admit liability."
"Our price for that quantity is X."
"These are our standard contract terms."
 10 Tips to Improve Your Negotiations
Always make sure you know what the other party is really looking for.
Never allow yourself to get sidetracked by the other party. Keep the conversation
on the issues being negotiated.
Seek to find alternative solutions the other person would find of interest.
Use time to your advantage. Know what timeline the other person is working
against.
Never allow the other party to know any absolute time constraints you might be
under.
Know how the other party defines success concerning what youre negotiating.
Never use a weak voice when offering a solution. It will cause the other party to
feel there is something else they can get.
Display confidence by showing eye contact when offering a solution or trading
something.
Use silence as a way to get the other party thinking and to help reinforce your
points.
Never put anything in writing until the final negotiation is complete. Once
something is in writing, its very hard to get it changed.
 What is negotiation?
Negotiation takes place when two or more
people, with differing views, come together to
attempt to reach agreement on an issue. It is
persuasive communication or bargaining.

Negotiation is about getting the best possible

deal in the best possible way.
 Four Common Mistakes made by
average negotiator
Concede too much, too soon
Dont Plan effectively
Respond poorly to adversarial tactics
Dont understand what win-win really means
 Planning to negotiate
Negotiation Skills

Establish your objectives

Establish other partys objectives
Frame negotiation as a joint search for a solution
Identify areas of agreement
Trouble shoot disagreements: bargain & seek
alternative solutions, introduce trade offs
Agreement and close: summarise and ensure
acceptance
 Individual Purchase Process

Love
Buying
Intention
Shopping
Consideration
Awareness
 Step 1: Analysis

Diagnose

Note Barriers

Wants and Needs

BATNA

SWOT

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 Step 2: Preparation

Decide how to communicate

Exchange Information

Plan for mutual Gain

Always expect the unexpected

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 Criteria and Standards
Negotiations should involve
involve:

A wise agreement based on principles and

interests

An efficient process for open communication

An improved relationship between the parties

(or at minimum, a neutral one)
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 Step 3: Communication

Explore differences and solutions.

Use a variety of tactics to address negotiation styles.

Develop rapport and build trust.

Signal expectations and leverage.

Probe first, then share information.

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 Always beware of.

People and
Cultural Gestures & More
their
Differences Non verbal Speaking
problems
 Step 4: Proposal

Offer a solution to the issue

Clarify roles to carry out the deal.

Determine any deadlines and incremental steps.

Decide a process for ongoing communication.

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 Step 5: Commitment
Secure Commitment

Establish Accountability

Mutually sign documents

Pay attention to social rituals

Make the commitment public

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Energizer
Phases of Negotiation
 The Three Phases

Exchanging Information

Bargaining

Closing
 Skills for Successful Negotiation

Effective speaking
Selfconfidence
Effective listening Emotional intelligence
A sense of humor Persistence

A positive attitude Patience

Respect Creativity
Barriers to Negotiation
Barriers to Negotiation
Communication Barriers
Cultural and Gender Barriers
Lack of Trust
Lack of Information
Battle of wills
 Overcoming Barriers
Work through the planning process to
understand all issues and people involved.
Anticipate questions and problems the other
side may have.
Set clear expectations at the start.
Use win-win tactics to counter tactics that are
more adversarial.

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THANK YOU