Let’s talk NEGOTIATION.
Negotiation is a key component of selling. However, I find personal views and even the definition of negotiation can vary depending on the sales rep.
For me, negotiating is not conflict, but collaboration.
In the B2B sales world, it isn’t “my interests” vs. “your interests”. Although that does play a part, my client and I both have to work within the parameters and requirements outlined by our respective companies.
Let’s take my client, Bob, for example. Bob’s company has policies he must comply with, his project team has requirements that we must meet, his legal team has needs as well – and so on. Bob’s job is to ensure these needs are met.
Similarly, on my side, my company has certain policies I must comply with. Restrictions around pricing, licensing, contract duration, discounts, etc. You get the drift.
Of course, Bob and I both also have personal requirements and areas most important to us. However, it’s important to look at the larger picture because Bob and I also know that our relationship is important and that this will not be our last negotiation. In fact, if all goes well it is likely one of many more to come.
From this perspective, the goal of a negotiation is for Bob and I to share as much information as we can (and is allowed), in order to uncover the most optimal outcome. Kind of like solving a puzzle – what are you asking for? What of those requirements are most important? What do I have access to/can give you? What can I not move on? And so on…
It’s important to understand all the levers in a negotiation on both sides – what each of your respective organizations are willing to bend on, and what they aren’t. That way, if you find that you cannot move on one item, but can on another which is equally as important to them, problem solved.
Perhaps you’ve heard the saying “the best negotiation is when everyone feels they have lost”.
I wholeheartedly disagree.
The best negotiation is not only when everyone feels they’ve “won” but when your client relationship emerges even stronger, and they can’t wait to work with you again and again in the future.
How do you do this? Ask questions! Get curious. Make sure you have all the information possible before presenting an offer.
The best way to do this is to ensure you and Bob have a solid relationship – because without that, there is no trust, and no information will be shared. If you do have a relationship though, and trust, information can be shared freely and offers will result that truly result in a positive experience on both sides and a strong desire to work together again in the future.
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