As a sales person, a critical part of our daily activity is negotiation sales deals. Success negotiations tied to ongoing relationships, tend to involve multiple issues beyond simply price.
Negotiation, by definition, is the process by which two or more parties attempt to reach an agreement. The definition is simple, but the process can be complex. Principled negotiation or Win-Win negotiation is the recommended model to building valuable long term client relations.
To achieve a collaborative win-win agreement, experts recommend these 5 steps:
- Preparation: Trust is a prerequisite for disclosures that expose vulnerabilities. Each side needs confidence the other is acting in good faith (principled negotiation). Knowing your BATNA “best alternative to a negotiated agreement” is a foundation on which negotiations can proceed. Plan, get informed and do your research. Identifying alternatives in advance improves your leverage by clarifying at what point you should accept a deal or walk away.
- Investigate. Consider the opponents perspective, what are their interests and objective. What are the issues from their point of view? Gain an information advantage.
- Propose. Produce an agenda. Facilitate an environment where both side propose key criteria. Don’t make the first major concession. The first major concession tends to become an “anchor” around which further negotiations revolve. Allowing the other party to make the first offer reveals their position and informs your negotiating stance.
- Bargain. Identify and agree areas of common, and reach agreement. Trade less important issues for more important ones. For example, adjust a monetary figure in exchange for other benefits, such as a longer contract, larger territory, or quicker payments
- Close. Review all the main points, outline commitments and next actions. Re-assure the opponent that the agreement is the best outcome for both parties and provides a stable platform for developing an ongoing business relationship
In addition to CRM, Proaptivity deliver a varied of Sales, Account Management and Negotiation skills training. These are all based on supporting your sales team achieve. For more information, contact us today on 028 9099 6388 or via email at email@example.com