How to Successfully Negotiate Price Increases in Any Economic Climate

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How to Successfully Negotiate Price Increases in Any Economic Climate

Mastering the Art of Profitable Negotiation: Securing Price Increases

In today’s economic upheaval, businesses face a perfect storm of inflationary pressures and supply chain complexities. Savvy customers, wielding public opinion as a shield, deter vendors from enacting necessary price increases, creating a stifling predicament for sales teams and marketers across every distribution channel.

This intricate web of challenges leaves many companies feeling hamstrung, caught between market demands and the imperative to manage costs. The result? A labyrinth of obstacles hinders essential price increase negotiations in these turbulent times. It’s a complex landscape, and some salespeople and sales managers opt for the safety of the status quo, seeing negotiation as a daunting maze.

But here’s the truth: successful negotiation in these circumstances isn’t just about the price; it’s about preparation, strategic messaging, and impeccable negotiation prowess. How can sales managers and teams break through these barriers?  What strategies can empower them to secure vital price increases confidently? My latest article in the Negotiating Advantage delves into these pressing questions, offering actionable insights and proven tactics to navigate these stormy waters successfully.

In the current economic landscape, inflationary pressures and intricate supply chain challenges have created a tumultuous environment for most businesses.  Unfortunately, some governments try to intervene to curb the current inflationary trends and mitigate the increased cost of living for consumers.  Shrewd customers, in all distribution channels, often use prevailing public relations pressure to discourage or restrict vendor companies from implementing necessary price increases.

These interdependent variables and moving parts create a climate where most companies, sales managers, salespeople, and marketing departments feel constrained in securing vital price increases from their customers across all channels.  This scenario presents a formidable dilemma, where businesses must navigate the delicate balance between responding to market forces and pressure to manage cost/price containment – making it increasingly arduous to negotiate essential price increases with customers in challenging times.

Effectively navigating and negotiating necessary price increases can be perceived as “complicated,” – which can cause some companies to maintain the status quo regarding pricing.  Successfully selling in and negotiating price increases requires thorough preparation, strategic tools/templates (carefully written price increase letters with the supporting rationale that pre-empts potential customer objections), and excellent negotiation skills.

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Selling and justifying price increases to customers in a challenging economy and intricate market conditions can pose significant hurdles for sales and marketing personnel who lack adequate negotiation skills training, and turnkey tools.  However, despite the challenges, negotiating price increases often is vital to sustaining a company’s overall profitability.

Also, customers will likely leverage their constantly improving negotiation skills and ‘situational power’ to counter or reject proposed price increases from vendors.  Hence, sales management, sales, and marketing teams must consider the following two points when gearing up for price increase discussions:

Understanding the Customer’s Perspective:

  • Assess whether the customer’s resistance to a price increase stems from a ‘belief system,’ strategic stance, or company policy.

 

Recognizing Negotiating Tactics:

  • Determine if customers employ conscious negotiating strategies and aggressive tactics to test the vendor’s resolve.  Will the vendor concede to monetary or other concessions under negotiating pressure?

The difficulty in selling and negotiating price increases during challenging market conditions often arises from differing perspectives between a company’s sales/marketing personnel and customers.  Customers typically raise strong objections, issue threats, and employ aggressive negotiating tactics to resist price increases.  Customers often use tactics like the Higher Authority or the Hot Potato Gambits to control the decision-making process in their favour.  Most salespeople don’t know how to recognize these gambits or how to counter their use.

Undoubtedly, most salespeople and sales managers have encountered one of the following statements from customers expressing hesitancy – or outright refusal regarding price increases:

Customer Response One: “You know the current economic and inflationary situation as well as I do.  This is not the time to try to pass on any price increase.  The market is soft, and increasing prices will only hurt your company’s sales with us.  Several competitors would be interested in capturing your market share and growing their business with us.  Let’s wait six months and revisit the situation when the economy improves.  If you insist on implementing a price increase, you’ll force us to reassess the category and your current position with our company.  A price increase in this situation seems like a risky move on your part.”

Customer Response Two: “Given the current economic situation and inflation, implementing a price increase now seems risky for your company.  We won’t accept vendor price hikes, irrespective of circumstances, especially considering cost of living and inflation issues.”

Customer Response Three: “Have you not read the news about the cost of living and inflation for consumers?  We aren’t accepting price increases from any vendors.  Your company’s higher cost structure isn’t our problem.”

All vendor organization members must understand that effectively selling and negotiating price increases is indispensable across all industries.

One of the Seven Strategies to Bolster Success in Selling and Negotiating Price Increases:

  1. Cultivating the Right Mindset and Improving Self-Confidence: Sellers must acknowledge that customers rarely react positively to price hikes. However, a salesperson’s confidence and belief in the value of their products/services outweigh concerns about competition or customer redirection. Confidence is critical in achieving a favourable outcome when negotiating price increases.

Companies might not leverage improved business results with their customers because salespeople need more confidence to aim for their maximum plausible position (MPP) during price increase negotiations.  Building confidence in the product/service and its benefits empowers salespeople to seek their desired outcome confidently.

The process becomes inherently challenging if sales, management, or marketing teams don’t have a positive mindset or the necessary confidence to sell and negotiate a price increase convincingly.  Becoming a proficient negotiator is a learned skill, and skill-building requires ongoing refinement.

Unfortunately, I can’t give away all of my ‘how-to’ secrets for negotiating price increases in this article.  If you want to learn more about the other six proven strategies and tactics to negotiate customer price increases, hire me as your negotiating coach. 

In this article, I’ve touched upon only one strategy to help negotiate price increases.  Hire me as your dedicated negotiating coach to delve deeper into these proven strategies and tactics to gain a comprehensive understanding.

As your in-house negotiation expert, I’ll help you and your sales/marketing team navigate the intricate landscape of negotiating price increases across various channels and industries, which is pivotal for your company’s profitability and success.

When you engage my services, you’ll:

  • Master Preparation and Planning: Gain insights on meticulously preparing for price increase negotiations.
  • Harness the Power of Messaging: Craft compelling, results-driven price increase letters that yield favourable outcomes.
  • Effectively Counter ‘Situation Power’ and the Higher Authority and Hot Potato Gambits: Learn tactics to manage and counterbalance customer leverage during negotiations.
  • Utilize Blueprinting Questions: Employ powerful questioning techniques to secure successful price increases.
  • Handle Objections with Finesse: Pre-empt and effectively counter customer objections during negotiations.
  • Unlock Strategic Secrets: Discover my one exclusive question that significantly enhances your success in securing price increases.
  • Leverage Effective Strategies and Tactics: Master key negotiation strategies like the Higher Authority Gambit and its countergambits for fruitful discussions.
  • Strategically Position Price Increases: Understand the art of determining the ideal price increase and adeptly presenting it to customers.

For a comprehensive grasp of these vital negotiation strategies, let’s work together to enhance your negotiation prowess and achieve improved outcomes.

Take Action and Invest in Our Expert Negotiating Training and Negotiation Coaching Packages, Negotiation Tools, and Online Course to Become a Better Negotiator.

» Negotiating Skills Training: Book a tailored in-house presentation, seminar or learning workshop for your organization.

Speaking Engagements – Industry Associations and Companies: Book a tailored, engaging, and impactful 60-minute to two-hour presentation at an upcoming meeting, conference or convention.

» Negotiating Coaching Packages: If your company is facing a challenging high-value negotiation and you need an expert to help you or your team – or you own a small business – or you’re an individual who needs practical negotiation advice, you can benefit from my investing in one of my three proven, results-producing negotiation coaching packages for individuals, small business owners or corporations.

» Digital Negotiation Learning Products: You can purchase my three E-books containing powerful strategies and tips.  E-books: Forensic Blueprinting Questions For Effectively Selling and Negotiating Price or Fee Increases and Managing the Price-driven Sale, Selling and Negotiating Price or Fee Increases in Any Economic Environment, and Strategies and Tips on How to Effectively Manage the RFP/RFQ/RFI or Bid/Tender Process to Optimize Results and Outcomes.

You can also purchase the Negotiating Personality Type and Corresponding Negotiating Style Self-Assessment Questionnaire and Interpretation Results and my NEW Digital MP3 “Greatest Hits” Verbal Negotiating Phrases, Scripts, Questions, and Questioning Techniques.  These helpful tools are in digital format and can be easily downloaded.

I provide a discounted Master Negotiator Bundle with all my Digital Learning Products.

» Online Sales Negotiation Course: If you’re in sales, sales management or a cross-functional role that supports sales, you can benefit from enrolling in my NEW self-paced Negotiating for Sales Success online course.

» Meet Negotiating Coach® Michael E. Sloopka

No part of this copyright material can be used without written permission from Selling Solutions Inc.

Five Characteristics That People Should Embrace to Become Better Negotiators

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Five Characteristics That People Should Embrace to Become Better Negotiators

Embracing Success: The Essential Traits of Effective Negotiators

1. Good Negotiators Invest the Time to Learn and Understand the Wants, Needs, and Desired Outcomes of the Other Side

In the dynamic world of negotiation, it’s crucial to recognize that negotiating is a two-way street.  While it’s natural to focus on your wants, needs, concerns, and desired outcome in business, social or personal negotiations, acknowledging that the other side faces some degree of ‘pressure’ to arrive at a negotiated outcome is essential.

To be a more effective negotiator, you must carefully examine the other side’s potential ‘pressure points’ to comprehensively understand the negotiation landscape.  In a selling situation, it’s easy for salespeople to lose sight of the customers’ underlying ‘pressure points.’

Ask yourself: Why does this person or company need my product or service?  What outcome does the other side want?

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Often, the other side involved in a negotiation may not be willing to reveal their ‘pressure points’ openly.  Why?  Because the other side may feel that sharing information might put them at a disadvantage in the negotiation.  Therefore, most people are not forthcoming with the information you need that can help them.

Hypothesizing, using conjecture or making assumptions about the other side’s needs and desired outcome is a common negotiating mistake made by most people.  Answers to your questions must come from the other side involved in the negotiation – not from your imagination or personal belief system.

Tip: Prepare and learn to ask effective blueprinting questions.  Use proven questioning techniques to uncover clues to help you understand the other side’s wants, needs, and dominant motivation.  You can learn more about accessing my results-producing best practices negotiating phrases, scripts, blueprinting questions, and questioning techniques HERE.

2. Good Negotiators Embrace Continuous Improvement

Successful negotiators desire to acquire, learn, and apply effective negotiating practices and skills.  Negotiation isn’t reserved for the boardroom, labour disputes, or government negotiations.  Negotiation is an essential life skill, and it’s a learned skill.  Investing time and effort to hone your negotiating skills is the key to navigating negotiations with finesse.  Without a commitment to constant improvement, you’ll likely have sub-optimal outcomes and continual frustration.

Tip: Invest in negotiation courses, templates, and tools that will help you improve your skills and results.  Also, using a professional sports analogy, I recommend you “game film” yourself and do a forensic autopsy on all your negotiations to determine how you could have done better and make the necessary changes in your approach, strategies, and tactics.

3. Good Negotiators Master the Art of When and How to Use Negotiating Gambits and Countergambits

Unlocking the potential of negotiation lies in the strategic use of what we teach in our negotiation skills training programs – negotiating gambits and corresponding countergambits. The terms gambit and countergambit are chess terminology meaning “manoeuvre for advantage.”

Tip: Learn and understand the nuances and intricacies of using gambits and the corresponding countergambits. Learn when to deploy each gambit and be prepared with the appropriate countergambit to defend against savvy negotiators who wield them (as the situation dictates.)  These negotiating gambits and countergambits provide a versatile competitive edge at different stages of negotiation – enhancing your overall approach and effectiveness.

4. Good Negotiators Consistently Practice to Improve Their Skills and Results

Negotiating is not just about someone trying to close commercial business deals.  Consistent practice is the key to expanding your skills in all business, personal, and social negotiations.  Don’t wait for meaningful, large-scale, high-value negotiations to implement your knowledge.  Seek small opportunities to apply your newfound negotiating process, strategies, and techniques.  Through a commitment to ongoing practice, your negotiating abilities will flourish, and results/outcomes will improve.

5. Good Negotiators Have a Strong Desire to Create Win-Win Outcomes

A successful negotiator is focused on more than just their gains.  Much has been written about the Win-Win approach to negotiations. The desire to create Win-Win situations is paramount to success.  It’s recommended that you try to manage the negotiation process to ensure the other side feels it won some concessions from you in a negotiation.   It would be best to take responsibility for implementing the required negotiating process, methodology, strategies, and tactics to foster positive outcomes for both sides.

Greater confidence and influence improve when negotiation is approached in a collaborative – versus competitive manner.

Tip: We provide our clients with an easy-to-understand and apply Negotiating Behaviour Matrix Diagram that helps people navigate the Win-Lose, Lose/Lose, Lose/Win, and Win/Win approaches.  It’s important to separate “content from emotion” in your negotiations.  Also, the concern for substance and the relationship is crucial in determining your negotiation approach.

Conclusion: Elevating Your Negotiation Skills

Regardless of your experience, mastering negotiation skills is an ongoing journey for all of us.  You’ll become a better negotiator and gain confidence and influence by continuously improving, mastering tactical maneuvers, consistently practicing, and fostering Win-Win outcomes.

These five characteristics of a good negotiator are not just for personal gain.  Adequately managing the negotiation can contribute to the success of each side involved in a business, personal or social negotiation.

Learn to embrace these five characteristics of a good negotiator and watch your negotiation capabilities and outcomes improve.

Take Action and Invest in Our Expert Negotiating Training and Negotiation Coaching Packages, Negotiation Tools, and Online Course to Become a Better Negotiator.

» Negotiating Skills Training: Book a tailored in-house presentation, seminar or learning workshop for your organization.

Speaking Engagements – Industry Associations and Companies: Book a tailored, engaging, and impactful 60-minute to two-hour presentation at an upcoming meeting, conference or convention.

» Negotiating Coaching Packages: If your company is facing a challenging high-value negotiation and you need an expert to help you or your team – or you own a small business – or you’re an individual who needs practical negotiation advice, you can benefit from my investing in one of my three proven, results-producing negotiation coaching packages for individuals, small business owners or corporations.

» Digital Negotiation Learning Products: You can purchase my three E-books containing powerful strategies and tips.  E-books: Forensic Blueprinting Questions For Effectively Selling and Negotiating Price or Fee Increases and Managing the Price-driven Sale, Selling and Negotiating Price or Fee Increases in Any Economic Environment, and Strategies and Tips on How to Effectively Manage the RFP/RFQ/RFI or Bid/Tender Process to Optimize Results and Outcomes.

You can also purchase the Negotiating Personality Type and Corresponding Negotiating Style Self-Assessment Questionnaire and Interpretation Results and my NEW Digital MP3 “Greatest Hits” Verbal Negotiating Phrases, Scripts, Questions, and Questioning Techniques.  These helpful tools are in digital format and can be easily downloaded.

I provide a discounted Master Negotiator Bundle with all my Digital Learning Products.

» Online Sales Negotiation Course: If you’re in sales, sales management or a cross-functional role that supports sales, you can benefit from enrolling in my NEW self-paced Negotiating for Sales Success online course.

» Meet Negotiating Coach® Michael E. Sloopka

No part of this copyright material can be used without written permission from Selling Solutions Inc.

Navigating Healthcare Sales Negotiations in a Changing Landscape

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Navigating Healthcare Sales Negotiations in a Changing Landscape

Strategies and Tactics for Success in the Evolving Healthcare Market

Are you and your sales/marketing teams trying to address significant challenges and barriers when negotiating with healthcare institutions?  In the rapidly evolving and challenging world of healthcare, it’s essential to adapt sales, marketing, and negotiation strategies to address the changing dynamics successfully.

Whether you’re dealing with hospitals, clinics, dental practices, imaging centres, group purchasing organizations (GPOs), or healthcare networks, this article will illuminate the evolving healthcare landscape and provide some valuable negotiation insights, strategies, and tips to improve results.

The Reality of Healthcare Sales Negotiations:

In today’s healthcare sector, sales negotiations are more complex than ever.  Procurement teams are becoming savvier negotiators – they are becoming skilled at evaluating vendors and leveraging situational power for cost reductions, added value delivery, and better contractual terms and conditions to achieve savings for strained budgets.  Despite their significant market dominance, even the billion-dollar healthcare suppliers will eventually face customer pressure to reduce pricing and add incremental value to win deals.

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The following challenges facing healthcare sales and marketing organizations are problematic:

  1. Surgeons and key opinion leaders (KOL) no longer have the influencing or decision-making power they once did.
  2. Increased sophistication in healthcare product/services sourcing and assessment processes.
  3. Companies with proprietary healthcare products and innovations struggle for market share.
  4. Tight hospital budgets with high non-clinical overhead costs.
  5. Difficulty in reaching decision-makers.
  6. Turnover in healthcare procurement personnel.
  7. Healthcare value-assessment committees lengthening the sales cycle.
  8. Challenges in scheduling product evaluations and trials.
  9. Procurement’s obsession with cost savings.
  10. The continued use of request for proposal (RFP), request for quote (RFQ), and request for information (RFI) processes.
  11. Elongated selling cycles, poorly written value propositions, and weak day-to-day communication practices.
  12. Consultants are driving cost-cutting initiatives. …and many more.

In this article, I’ll delve into some of the intricacies of healthcare sales negotiations.  While I can’t cover everything in this article, I’ll provide several helpful insights, strategies, and tips to navigate this ever-changing environment.

The Changing Face of Healthcare Sales Negotiations:

Gone are the days when surgeons and clinicians solely drove product selection in healthcare. Today, procurement departments wield significant influence, and sales teams must adapt. Investing in negotiating skills training and revising your value proposition messaging is critical for success.

The Impact of Rising Healthcare Costs:

With healthcare costs continuously rising, institutions must cut expenditures while maintaining quality, value-based patient care.  Healthcare sales teams must understand these financial pressures facing all members of the institution’s ‘buying centre’ and align their offerings and value propositions accordingly.

Negotiating with Procurement: A New Ballgame:

Traditionally, healthcare sales negotiations focused on surgeons and clinicians.  Now, suppliers must cater to the demands of procurement teams.  Don’t overwhelm healthcare procurement and supply chain personnel with too much clinical data; put all the regulatory and clinical information and detailed product specifications in the exhibit or appendix sections at the back of your presentations or proposals (where they belong.)  Don’t waste time showing supply chain personal information that will not influence the final decision.

Additional Insights and Tips for Successful Healthcare Sales Negotiation:

  1. Understand the Procurement Process: Learn procurement teams’ decision-making criteria and priorities.
  2. Understand the Buying Centre: Most sales organizations I teach need to learn how to develop a better working knowledge of the people in any institution who make or influence decisions.
  3. The Sales/Marketing Challenge: Improve alignment and cooperation between your company’s sales, marketing, and product management teams.
  4. Do Your Research: Carefully and thoroughly research customer personnel and information about each institution or customer.
  5. Stay Informed: Keep up with non-clinical healthcare industry trends, regulations, and technologies.
  6. Customize Your Approach: Tailor sales and negotiation strategies to each healthcare institution.
  7. Contract Negotiations: Understand how negotiations impact letters of agreement, supply agreements, and contracts.  Most organizations have seriously flawed contracts.
  8. Emphasize Value and Cost Effectiveness: Highlight the value and cost-effectiveness of your products and/or services. Also, determine the ‘switching costs’ if your company is the incumbent vendor for capital equipment, medical devices, equipment or supplies, and there is a risk of losing business to a lower-priced competitor.
  9. Build Strong Relationships: Foster positive relationships with procurement professionals.  Don’t avoid these people.  Don’t wait to be told by surgeons or other clinical personnel that you must “meet with purchasing” – after you’ve let the “value cat out of the bag.”

Conclusion:

In any aspect of healthcare, a one-size-fits-all sales, marketing, and negotiation approach no longer works.  As procurement teams gain prominence and dominance, understanding their needs is critical to successful negotiations.  As healthcare costs rise, providing cost-effective solutions becomes crucial.

Suppliers must spend less time on clinical product education/training and provide sales, marketing, and cross-functional personnel with training in real-world business skills.  Companies need expert troubleshooting advice and negotiation skills training to help build strong relationships with healthcare procurement professionals to secure mutually beneficial deals – without compromising patient care or relationships with clinical personnel.

Remember: A negotiated dollar is a bottom-line dollar.  You can’t make – or save money faster than when you’re negotiating.

Take Action and Invest in Our Expert Negotiating Training and Negotiation Coaching Packages, Negotiation Tools, and Online Course to Become a Better Negotiator.

» Negotiating Skills Training: Book a tailored in-house presentation, seminar or learning workshop for your organization.

Speaking Engagements – Industry Associations and Companies: Book a tailored, engaging, and impactful 60-minute to two-hour presentation at an upcoming meeting, conference or convention.

» Negotiating Coaching Packages: If your company is facing a challenging high-value negotiation and you need an expert to help you or your team – or you own a small business – or you’re an individual who needs practical negotiation advice, you can benefit from my investing in one of my three proven, results-producing negotiation coaching packages for individuals, small business owners or corporations.

» Digital Negotiation Learning Products: You can purchase my three E-books containing powerful strategies and tips.  E-books: Forensic Blueprinting Questions For Effectively Selling and Negotiating Price or Fee Increases and Managing the Price-driven Sale, Selling and Negotiating Price or Fee Increases in Any Economic Environment, and Strategies and Tips on How to Effectively Manage the RFP/RFQ/RFI or Bid/Tender Process to Optimize Results and Outcomes.

You can also purchase the Negotiating Personality Type and Corresponding Negotiating Style Self-Assessment Questionnaire and Interpretation Results and my NEW Digital MP3 “Greatest Hits” Verbal Negotiating Phrases, Scripts, Questions, and Questioning Techniques.  These helpful tools are in digital format and can be easily downloaded.

I provide a discounted Master Negotiator Bundle with all my Digital Learning Products.

» Online Sales Negotiation Course: If you’re in sales, sales management or a cross-functional role that supports sales, you can benefit from enrolling in my NEW self-paced Negotiating for Sales Success online course.

» Meet Negotiating Coach® Michael E. Sloopka

No part of this copyright material can be used without written permission from Selling Solutions Inc.

The Illusion of Sales Negotiation Mastery: Unveiling the Truth About Some Sales Professionals

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The Illusion of Sales Negotiation Mastery: Unveiling the Truth About Some Sales Professionals

Overconfidence in Negotiating: A Common Pitfall

Many sales professionals believe they’re top-notch negotiators; however, are they?  This article explores why some people, especially those in the sales profession, tend to overestimate their negotiating skills.  Shockingly, eighty-seven percent of salespeople and sixty-seven percent of procurement and supply chain personnel never receive formal, in-depth negotiating skills training.

Negotiating is a crucial skill for salespeople, and while many salespeople claim they have sufficient skills, overconfidence can be their undoing.  Let’s dive into some common reasons why some salespeople and sales managers think they’re better negotiators than they actually are.  In this article, I’ll also provide some recommendations and strategies to address the pitfalls.

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Lack of Self-awareness

A lack of self-awareness is one of the primary reasons some sales professionals overestimate their negotiating abilities.  Some salespeople and sales managers often fail to recognize their weaknesses, which leads to inflated self-assessments of their skill level, competency, and abilities.

Recommendation: Regularly assess your negotiating skills and seek peer and senior management feedback (only if the management has the expertise to provide effective coaching.)  Consider professional negotiating skills training to improve individual and organizational performance and business results.

Limited Understanding of Negotiation Strategies

Some salespeople mistake “bargaining and haggling” for negotiation.  Negotiation is not only about negotiating volume commitments, prices, discounts, volume rebates, and promotional or merchandising programs.  Negotiating is a complex process that involves various interdependent variables, moving parts, and strategies like careful needs assessment, value creation, problem-solving, and relationship-building.

Recommendation: Expand your knowledge of negotiation strategies, tactics, techniques, phrases, questions, and questioning techniques to enhance your skills.  If your company is not investing in professional development and training, take the initiative and enrol in a negotiating skills training seminar or workshop.  While reading a book on the topic might help – live training programs are more effective and beneficial.

Ignoring Emotional Intelligence

Emotional intelligence plays a crucial role in effective negotiation.  Sales professionals who focus solely on facts and figures in discussions, presentations, and price- or solution-based proposals may miss the emotional forensic clues of their counterparts, leading to suboptimal outcomes in negotiations.

Recommendation: Develop your emotional intelligence by practicing active listening, empathy, and understanding the emotional aspects of the negotiation.

Underestimating the Importance of Preparation and Planning

Many negotiators, especially in sales, need to pay more attention to the importance of preparation and planning.  Some salespeople believe their ‘charisma, natural charm, and historically based instincts’ will carry them through, neglecting to invest the time and effort into the groundwork for successful negotiation.

Recommendation: Invest the necessary time and effort in thorough research and preparation before each negotiation.  Knowing your client’s needs and potential objections can give you a significant advantage.  Unfortunately, doing live, in-person role-playing involving real-world scenarios scares the daylights out of most salespeople.  However, role-playing is an effective way to practice new skills, learn more, and adapt.

Our Negotiating for Sales Success training seminars, workshops, and coaching sessions focus on having situational application discussions using real-world negotiating scenarios facing sales organizations.  We don’t believe in artificial role-playing or telling silly stories irrelevant to the industry the salespeople work in.

Sometimes entertaining stories are fun and suitable for people to listen to, and they may help to provide context or examples of how a negotiating strategy or tactic might work; however, I’m not sure what a story about a hostage situation has to do with critical commercial negotiation involving a large club or home improvement channel customer!

Failure to Adapt and Learn from Experience

Some sales professionals fall into the trap of using the same negotiation tactics (tricks or gimmicks) repeatedly, even when these tactics consistently yield subpar results.  Some salespeople think they’re skilled enough – but most fail to adapt to different and increasingly complex negotiation situations.

Recommendation: Always do a forensic autopsy (no, not that kind of autopsy) and analyze your negotiation outcomes, learn from your mistakes, and adjust your approach based on each unique scenario.

The Dunning-Kruger Effect

The Dunning-Kruger effect is a cognitive bias where individuals with low ability at a task overestimate their ability.  This is particularly prevalent in negotiations because those with the least competence often need more knowledge to evaluate their performance accurately.

Recommendation: Stay humble and always be open to feedback.  Be aware of the Dunning-Kruger effect, and only assume you’re a good negotiator through continual training, self-assessment, practice, and improvement.

The Role of Sales Managers in Negotiation

Competent and experienced sales managers with the right expertise are essential for developing their team’s negotiating skills; however, familiar challenges arise in this context.

Ineffectiveness of Some Sales Managers as “Coaches”

One common issue I encounter during our negotiating skills training workshops and coaching sessions is that some sales managers, despite their years of experience, may not possess the coaching skills necessary to help implement and reinforce the new learning with the members of their sales teams.  Some sales managers might excel as negotiators themselves; however, teaching and mentoring their salespeople in this complex skill can be an entirely different challenge.

Recommendation: Sales managers must coach their people using a proven negotiating methodology.  Sales managers need to coach using a negotiating ‘playbook.’  The negotiating playbook includes best practices and easy-to-use tools, templates, scripts, phrases, questions, and questioning techniques.  The playbook provides the foundation for effective coaching and mentoring by sales managers.  Nothing is worse than salespeople or sales managers with fifteen years of experience – one year at a time!

The Bad Habit of Taking Over Negotiations

Another problem is that some sales managers, eager to secure a deal, often take over negotiations their salespeople should be capable of handling.  This habit has nothing to do with the use of the ‘Higher Authority Gambit’ in a negotiation.  When a sales manager takes over a negotiation, it not only robs the salesperson of getting valuable experience but also sends a message that the manager may not have confidence in their team’s abilities.

Recommendation: Sales managers should empower their team by allowing salespeople to lead negotiations.  They can provide guidance and support from the sidelines.  The salesperson should have the opportunity to learn and grow through practice.  I realize valuable deals are in play, and some sales managers may be unwilling to risk blowing a deal so that a salesperson can get some much-needed experience.

Conclusion: Empowering Sales Teams for Negotiating Success

To address these challenges and maximize the potential of your sales team, it’s crucial to strike a balance.  Sales managers can become more effective negotiation coaches by improving their understanding of negotiating, mastering their coaching skills, and empowering their salespeople to take the lead in negotiations.

In the competitive world of sales, self-awareness and constant improvement are essential.  By addressing the challenges within the team and providing the proper fundamental training and guidance, sales professionals and their sales managers can collectively work towards becoming exceptional negotiators.  This approach will lead to better results and foster a culture of continuous learning and growth in the sales organization.

Take Action and Invest in Our Expert Negotiating Training and Negotiation Coaching Packages, Negotiation Tools, and Online Course to Become a Better Negotiator.

» Negotiating Skills Training: Book a tailored in-house presentation, seminar or learning workshop for your organization.

Speaking Engagements – Industry Associations and Companies: Book a tailored, engaging, and impactful 60-minute to two-hour presentation at an upcoming meeting, conference or convention.

» Negotiating Coaching Packages: If your company is facing a challenging high-value negotiation and you need an expert to help you or your team – or you own a small business – or you’re an individual who needs practical negotiation advice, you can benefit from my investing in one of my three proven, results-producing negotiation coaching packages for individuals, small business owners or corporations.

» Digital Negotiation Learning Products: You can purchase my three E-books containing powerful strategies and tips.  E-books: Forensic Blueprinting Questions For Effectively Selling and Negotiating Price or Fee Increases and Managing the Price-driven Sale, Selling and Negotiating Price or Fee Increases in Any Economic Environment, and Strategies and Tips on How to Effectively Manage the RFP/RFQ/RFI or Bid/Tender Process to Optimize Results and Outcomes.

You can also purchase the Negotiating Personality Type and Corresponding Negotiating Style Self-Assessment Questionnaire and Interpretation Results and my NEW Digital MP3 “Greatest Hits” Verbal Negotiating Phrases, Scripts, Questions, and Questioning Techniques.  These helpful tools are in digital format and can be easily downloaded.

I provide a discounted Master Negotiator Bundle with all my Digital Learning Products.

» Online Sales Negotiation Course: If you’re in sales, sales management or a cross-functional role that supports sales, you can benefit from enrolling in my NEW self-paced Negotiating for Sales Success online course.

» Meet Negotiating Coach® Michael E. Sloopka

No part of this copyright material can be used without written permission from Selling Solutions Inc.

Unlock the Secrets of Effective Sales Negotiation: Stop ‘Buying the Sale’ and Boost Your Bottom Line!

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Unlock the Secrets of Effective Sales Negotiation: Stop ‘Buying the Sale’ and Boost Your Bottom Line!

There are ongoing troublesome behaviours that continue to plague inexperienced and experienced negotiators

Based on our research and significant experience providing negotiation skills training, negotiating coaching, and consulting expertise to corporations, small business owners, and individuals, it’s apparent that there are ongoing troublesome behaviours that continue to plague inexperienced and experienced salespeople, sales managers, and businesspeople, in any industry, when it comes to negotiating.

I’m not convinced that the millions of dollars companies spend annually on so-called “sales training” adequately improves – or changes most salespeople’s and sales managers’ behaviours.  There is a proliferation of articles, blogs, LinkedIn posts, and numerous videos and webinars that attempt to help people follow a sales process and methodology, uncover customer needs and dominant buying motives, and try to instruct people on how to sell their company’s differentiated value proposition.

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Based on the specific customer/account/client circumstances and market conditions, sellers at all levels of selling sophistication often focus too much on a price-based or concession-driven sale.  In most selling situations, salespeople don’t realize that they’re not negotiating correctly – or negotiating at all – and they’re simply “buying the sale.”

The Strategy for a Sales Negotiation

The real art of effective sales negotiating is to complete a satisfactory exchange without giving away more than necessary.

The challenge is identifying all the potential components for exchange and realizing how much value you and, more importantly, your customers/clients/accounts place on each component.  There can be many interdependent variables and moving parts involved in a negotiation.

Most salespeople spend far too much time making excuses or blaming these interdependent variables and moving parts for the less-than-desirable outcome they achieve.  Too often, organizations and salespeople fall victim to their flawed negotiating process and practices.  Their idea of negotiation usually involves an oversimplified barter process using an increasingly expensive package of financial and non-financial concessions that result in the salesperson “buying the sale.”

As the marketplace continues to be increasingly complex and competitive, salespeople (and sometimes their less-than-stellar sales managers) often don’t have the necessary negotiating skills.  Without the required skills, people often resort to the more common and easier-to-do “concession sale.”

The High Cost of Poor Sales Negotiation Skills

Picture this familiar scenario: A salesperson makes what they think are gratuitous concessions, believing they are closing in on an acceptable deal.  However, as they near the opportunity to close the sale, they realize that the other side sees all the concessions made as merely the starting point for a final negotiation.  The salesperson is then “trapped” into making additional concessions to get the business and close the deal, having already committed their company to everything they have “thrown in” along the way.

Not only has the actual transaction cost gone up, but the salesperson can’t be sure that their initial concessions were required in the first place.  One thing is clear: Reclaiming “spent” concessions given to customers is extremely difficult, and those concessions have become part of the ‘base package’ that the customer now expects to receive.

Because negotiating skills are not adequately refined on the selling side, some corporations are experiencing a gradual erosion of their profit margins.

On the buying side, sophisticated customers/clients are more successful at negotiating and increasing their profitability using their “situational power.”  Most sellers are unaware of “situational power” and how they can potentially counter its use.

This challenging dynamic has generated many vulnerable suppliers (sellers) prepared to give more significant concessions at each transaction to maintain their gross sales revenue or unit volume in the face of collapsing profit margins.

Effective Sales Negotiation Strategies and Tips

Here are some effective sales negotiation strategies and tips to help salespeople, sales management, and businesspeople avoid “buying the sale” when negotiating:

  • Learn and follow a disciplined negotiating process and methodology.  Companies and individuals must invest in negotiating skill development and make good negotiation skills and practices an organization-wide capability.
  • Planning and preparation are the most critical components of a negotiating process.  More often than not, salespeople and sales managers “cheat” and don’t do thorough or sufficient research before starting any sales negotiation.  You should always carefully and thoroughly plan and prepare for all sales negotiations  – even if the salesperson and company have existing business relationships with customers.  Why?  Because things are constantly evolving and changing – “You don’t know what you don’t know.”
  • Carefully determine, understand, and correctly diagnose the actual customer decision-making process and authority, wants, needs and dominant buying motive – before developing your price- or solution-based proposals or responses to an RFQ/RFP/RFI bid/tender process.
  • Companies and salespeople must develop and utilize compelling, effective, and persuasive price- and solution-based proposals and capability presentations. (Why buy from our company and me?) Salespeople make costly mistakes when they use the terms “quote or price quote” as part of their sales vocabulary.
  • Learn and understand effective customer value chain management.
  • Capture and record all your costs (e.g., couriers, product samples, technical support, etc.) that you’ve provided to customers during the year and claim value for these costs in the next negotiation.
  • Identify all the financial and non-financial concessions you are prepared to make and fully understand the cost of each potential concession.  Don’t assume there is “value” in a concession because there is cost.
  • Invest in the appropriate negotiation skills training and negotiating coaching and commit to adequately implementing and integrating the negotiating process, strategies, tactics, verbal phrases, scripts, questions, and questioning techniques.
  • Reinforce your negotiating training annually to stay one step ahead of your customers and competitors.

Remember: Nothing affects the bottom line of your company more – or your income more – than having effective sales negotiation strategies and skills.  You can’t make money faster than when you’re negotiating effectively!

Take Action and Invest in Our Expert Negotiating Training and Negotiation Coaching Packages, Negotiation Tools, and Online Course to Become a Better Negotiator.

» Negotiating Skills Training: Book a tailored in-house presentation, seminar or learning workshop for your organization.

Speaking Engagements – Industry Associations and Companies: Book a tailored, engaging, and impactful 60-minute to two-hour presentation at an upcoming meeting, conference or convention.

» Negotiating Coaching Packages: If your company is facing a challenging high-value negotiation and you need an expert to help you or your team – or you own a small business – or you’re an individual who needs practical negotiation advice, you can benefit from my investing in one of my three proven, results-producing negotiation coaching packages for individuals, small business owners or corporations.

» Digital Negotiation Learning Products: You can purchase my three E-books containing powerful strategies and tips.  E-books: Forensic Blueprinting Questions For Effectively Selling and Negotiating Price or Fee Increases and Managing the Price-driven Sale, Selling and Negotiating Price or Fee Increases in Any Economic Environment, and Strategies and Tips on How to Effectively Manage the RFP/RFQ/RFI or Bid/Tender Process to Optimize Results and Outcomes.

You can also purchase the Negotiating Personality Type and Corresponding Negotiating Style Self-Assessment Questionnaire and Interpretation Results and my NEW Digital MP3 “Greatest Hits” Verbal Negotiating Phrases, Scripts, Questions, and Questioning Techniques.  These helpful tools are in digital format and can be easily downloaded.

I provide a discounted Master Negotiator Bundle with all my Digital Learning Products.

» Online Sales Negotiation Course: If you’re in sales, sales management or a cross-functional role that supports sales, you can benefit from enrolling in my NEW self-paced Negotiating for Sales Success online course.

» Meet Negotiating Coach® Michael E. Sloopka

No part of this copyright material can be used without written permission from Selling Solutions Inc.

Five Common Negotiation Mistakes You Must Avoid

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Five Common Negotiation Mistakes You Must Avoid

Mastering the Art of Negotiation: Avoiding Common Pitfalls for Success

Negotiation is an essential life skill in our personal, social, and business lives. Whether negotiating the terms and conditions for a purchase order with a supplier, a promotional program with a customer or discussing curfew with your teenager – the art, science, and sport of negotiation is an essential skill that can impact outcomes.

Many people need help understanding and dealing with the common pitfalls hindering their negotiation success.  In this article, I’ll explore the five mistakes people make when negotiating and how to avoid them.

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Mistake #1: Failing to Prepare and Plan Thoroughly

It doesn’t matter whether people are involved in a complex or what people perceive as a straightforward negotiation.  One of the most significant errors in negotiation is that people need to do much better with preparation and planning.

It’s tempting to dive into a negotiation headfirst, but successful negotiators invest time in understanding their objectives, knowing their counterpart’s interests, researching, and anticipating potential objections.  Preparation and planning are the foundation upon which successful negotiations are built.  Without it, you’re navigating uncharted waters blindfolded, and you won’t likely do well.

Mistake #2: Neglecting Active Listening and Not Asking Good Questions

Effective communication is at the heart of negotiation; a crucial component is active listening.  People often get so caught up trying to make their point that they forget to listen to the other side.  When you truly listen, you gain insights into the other person’s needs and motivations.  This information is your most valuable asset in reaching a mutually beneficial agreement.

This mistake is particularly true for most salespeople and sales management.  Stop talking, listen, and ask effective blueprinting questions.  In our negotiation skills training programs and coaching sessions, we provide our clients with proven best practice questions and questioning techniques they can use to improve results in all their negotiations.

Mistake #3: Letting Emotions Dictate the Conversation

Emotions can cloud judgment and lead to impulsive decisions.  Letting your emotions take the driver’s seat can be a negotiation disaster, whether anger, fear, frustration, insecurity or impatience.  Instead, practice emotional intelligence.  Recognize your emotions, but don’t let them steer the conversation.  It’s important to understand that arguing intensifies peoples’ desire to prove themselves right.

Do your best to stay composed and rational when facing challenges.  Focus on the process and not the personalities involved in the negotiation.  When meeting confrontational or argumentative people in any negotiation or discussion – we recommend that our clients use the “Feel, Felt, Found” technique.  We also provide our clients with two powerful questions that will help them to separate “content versus emotion” in any negotiation.

Mistake #4: Neglecting Win-Win Solutions

Negotiation is not a zero-sum game.  It’s not about one side winning at the expense of the other.  Strive for a win-win solution that addresses both sides’ interests.  A successful negotiation leaves everyone feeling satisfied and valued, which can lead to better long-term relationships and future opportunities.  I provide my clients with a one-page Negotiating Behaviour Matrix diagram that helps them with their negotiation approach based on concern for substance versus the relationship.

Mistake #5: Overlooking Alternatives

Sometimes, negotiations hit obstacles, impasses, and deadlocks.  If you become fixated on a single solution, you risk overlooking alternative paths to success.  Always have a Plan B (and maybe even a Plan C) in your back pocket.  This flexibility can prevent you from making costly concessions you’ll regret later.  It’s also essential to develop your walk-away position in any negotiation – should the terms and conditions not meet your needs. Broadening the scope of negotiations is one of our three rules for negotiation.

Conclusion

In conclusion, the art, science, and sport of negotiation is a critical skill in both personal and business contexts.  By avoiding these common mistakes – failing to prepare, neglecting active listening, not asking good questions, letting emotions dictate, neglecting win-win solutions, and overlooking alternatives—you can unlock new levels of success at the negotiation table.

Remember, negotiation is not just about getting what you want; it’s about creating value and building meaningful relationships.  So, approach each negotiation with strategy, empathy, and a willingness to explore creative solutions, and watch your success soar.

Take Action and Invest in Our Expert Negotiating Training and Negotiation Coaching Packages, Negotiation Tools, and Online Course to Become a Better Negotiator.

» Negotiating Skills Training: Book a tailored in-house presentation, seminar or learning workshop for your organization.

Speaking Engagements – Industry Associations and Companies: Book a tailored, engaging, and impactful 60-minute to two-hour presentation at an upcoming meeting, conference or convention.

» Negotiating Coaching Packages: If your company is facing a challenging high-value negotiation and you need an expert to help you or your team – or you own a small business – or you’re an individual who needs practical negotiation advice, you can benefit from my investing in one of my three proven, results-producing negotiation coaching packages for individuals, small business owners or corporations.

» Digital Negotiation Learning Products: You can purchase my three E-books containing powerful strategies and tips.  E-books: Forensic Blueprinting Questions For Effectively Selling and Negotiating Price or Fee Increases and Managing the Price-driven Sale, Selling and Negotiating Price or Fee Increases in Any Economic Environment, and Strategies and Tips on How to Effectively Manage the RFP/RFQ/RFI or Bid/Tender Process to Optimize Results and Outcomes.

You can also purchase the Negotiating Personality Type and Corresponding Negotiating Style Self-Assessment Questionnaire and Interpretation Results and my NEW Digital MP3 “Greatest Hits” Verbal Negotiating Phrases, Scripts, Questions, and Questioning Techniques.  These helpful tools are in digital format and can be easily downloaded.

I provide a discounted Master Negotiator Bundle with all my Digital Learning Products.

» Online Sales Negotiation Course: If you’re in sales, sales management or a cross-functional role that supports sales, you can benefit from enrolling in my NEW self-paced Negotiating for Sales Success online course.

» Meet Negotiating Coach® Michael E. Sloopka

No part of this copyright material can be used without written permission from Selling Solutions Inc.

The Art of Negotiating: Business, Social, and Personal Negotiations

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The Art of Negotiating: Business, Social, and Personal Negotiations

The Impact of Negotiation in All Aspects of Life

Negotiation is a cornerstone of human interaction, impacting our personal lives and the commercial landscape.  Negotiating is an essential life skill that transcends boundaries, weaving through the fabric of our existence, from the boardroom, a meeting with a key account, to the family dinner table.

In this article, I’ll delve into the definition of negotiation in commercial, social, and personal contexts, unveiling the common threads that bind these seemingly distinct domains.

The Cambridge Dictionary defines negotiation as “the process of discussing something with someone to reach an agreement or the discussions themselves.”

Negotiation can also be explained as a strategic discussion intended to resolve an issue in a way both parties find acceptable. Negotiation can be a dialogue between two or more parties to resolve points of difference, gain an advantage for an individual or collective, or craft outcomes to satisfy various interests.

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However, many “definitions” available in the public domain are unhelpful when we teach or coach our clients.  The terms “negotiation or negotiating” are overused, misunderstood or misinterpreted in the media, and most people rarely understand negotiating.

When I start our negotiating training seminars or negotiation workshops, I often ask participants how they define negotiating.  After a few minutes of me looking at blank stares in the audience – or receiving inaccurate responses, most people need help defining the term – it’s critical to describe what negotiating is – before we teach people our negotiating methodology, strategies, and tactics.

Our Definition of Negotiation/Negotiating:

We define commercial negotiations as the disciplined process to determine what is of value to the other side without giving away things that are of no value/importance to them that cost you – or your company money.

In a personal negotiation, we define negotiating as the means of moving an involved party to some degree in a desired direction.  Negotiating is defined as the essence of progress in a personal or social situation.

The Commercial Arena: Defining Negotiation

In the commercial/business world, negotiation is often seen as a structured process of reaching agreements, typically centred around tangible assets, services, or contractual terms.  It can be a high-stakes dance where parties strive to maximize their gains while minimizing concessions.

Commercial negotiations can occur between businesses, individuals and businesses, or within organizations.

Critical Elements of Commercial Negotiation:

  1. Objective-driven: In commercial negotiations, there are clear objectives – profit, market share, cost reduction, etc.  Success is often measured in quantifiable terms, making it imperative to create a well-defined strategy.
  2. Legal Framework: Commercial negotiations are guided by contracts and legal frameworks, ensuring that both sides fulfill their obligations and that there are repercussions for breaches.
  3. Expertise and Preparation: Due diligence, market analysis, and thorough preparation are vital. The sides involved in a negotiation come to the table with data, facts, and a deep understanding of their counterpart’s needs and constraints.
  4. Competitive Edge: Negotiations in business are typically competitive, where each side seeks to gain an advantage over the other.  This competitive spirit drives innovation and economic progress.

The Personal Sphere: A Different Angle on Negotiation

In contrast, personal negotiations are often less structured and revolve around relationships, emotions, and intangible needs.  Whether deciding on a vacation destination with your partner, significant other or spouse – or you’re trying to negotiate with children over chores on a Saturday morning – personal negotiations are integral to daily life.

Key Elements of Personal Negotiation:

  1. Relationship-Centric: Personal negotiations are rooted in relationships.  The aim is not just to reach an agreement; however, the goal is to maintain harmony and strengthen bonds.
  2. Emotional Quotient: Emotions play a significant role.  Empathy, understanding, and emotional intelligence are vital for navigating personal negotiations successfully.
  3. Informal Nature: Unlike commercial negotiations, personal negotiations often lack formal contracts and legal consequences. Trust and verbal agreements are the glue that holds personal negotiations together.
  4. Mutual Satisfaction: In personal negotiations, the goal is not just individual gain but mutual satisfaction.  Striking a balance between individual needs and the relationship’s needs is critical.

The Interplay: Where the Lines Blur

While commercial and personal negotiations may seem worlds apart, they’re not entirely distinct.  In reality, the negotiation skills, strategies, tactics, techniques, and principles from one sphere often prove useful in the other.

  • Communication: Effective communication is a common denominator.  Active listening, clearly expressing needs, and building rapport are valuable in both arenas.
  • Problem-Solving: Negotiation is fundamentally about solving problems and finding common ground.  Whether closing a business deal or resolving a family conflict, the art of reaching for compromise and creative problem-solving is essential.
  • Ethics and Integrity: Integrity and ethical behaviour are vital in commercial and personal negotiations.  Trust is fragile, and once broken, it’s challenging to rebuild.

Conclusion:

In conclusion, negotiation is a versatile art that transcends boundaries.  While commercial negotiations are often structured and objective-driven, personal negotiations are imbued with emotions and focused on relationships.  Yet, both spheres share commonalities in communication, problem-solving, and ethics.  Understanding these shared elements can enhance your skills in both domains, making you a more adept and empathetic negotiator.

So, whether you’re closing a multimillion-dollar deal or mediating a household dispute, remember that negotiation is about more than just reaching an agreement – it’s about forging connections and achieving mutual satisfaction.

Take Action and Invest in Our Expert Negotiating Training and Negotiation Coaching Packages, Negotiation Tools, and Online Course to Become a Better Negotiator.

» Negotiating Skills Training: Book a tailored in-house presentation, seminar or learning workshop for your organization.

Speaking Engagements – Industry Associations and Companies: Book a tailored, engaging, and impactful 60-minute to two-hour presentation at an upcoming meeting, conference or convention.

» Negotiating Coaching Packages: If your company is facing a challenging high-value negotiation and you need an expert to help you or your team – or you own a small business – or you’re an individual who needs practical negotiation advice, you can benefit from my investing in one of my three proven, results-producing negotiation coaching packages for individuals, small business owners or corporations.

» Digital Negotiation Learning Products: You can purchase my three E-books containing powerful strategies and tips.  E-books: Forensic Blueprinting Questions For Effectively Selling and Negotiating Price or Fee Increases and Managing the Price-driven Sale, Selling and Negotiating Price or Fee Increases in Any Economic Environment, and Strategies and Tips on How to Effectively Manage the RFP/RFQ/RFI or Bid/Tender Process to Optimize Results and Outcomes.

You can also purchase the Negotiating Personality Type and Corresponding Negotiating Style Self-Assessment Questionnaire and Interpretation Results and my NEW Digital MP3 “Greatest Hits” Verbal Negotiating Phrases, Scripts, Questions, and Questioning Techniques.  These helpful tools are in digital format and can be easily downloaded.

I provide a discounted Master Negotiator Bundle with all my Digital Learning Products.

» Online Sales Negotiation Course: If you’re in sales, sales management or a cross-functional role that supports sales, you can benefit from enrolling in my NEW self-paced Negotiating for Sales Success online course.

» Meet Negotiating Coach® Michael E. Sloopka

No part of this copyright material can be used without written permission from Selling Solutions Inc.

8 Tips for Negotiating in the Digital Era – Be Careful of the Pitfalls!

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8 Tips for Negotiating in the Digital Era – Be Careful of the Pitfalls!

Navigating the Digital Landscape: Strategies to Avoid Common Negotiation Traps

Electronic negotiations have become the norm in today’s fast-paced and competitive business world and the post-COVID environment (residual reduced face-to-face contact.)  In a professional capacity, people working in sales, procurement, and cross-functional departments often navigate the challenging terrain of e-mail threads, PDF attachments, proposals, RFP/RFQ/price quote responses, and Zoom calls to close profitable deals promptly.

However, there’s a significant catch – purchasing/supply chain professionals now have a distinct advantage when negotiations move into the digital realm. In this article, I’ll explore some of the pitfalls of electronic negotiations and provide essential tips to help people level the playing field.

I’m not a proponent of salespeople negotiating digitally.  However, I understand there are a variety of limitations that may limit in-person meetings.  If possible and feasible, I advise my clients in the sales profession that all high-value and strategically important negotiations should occur in person.

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The Digital Disadvantage

Salespeople, especially those who rely heavily on face-to-face interactions, can be disadvantaged in the electronic negotiation arena.  Here are some common pitfalls:

  1. The Importance of Body Language and the Loss of Some Non-Verbal Cues: In-person negotiations allow us to read body language, facial expressions, and tone of voice.  In e-mails and on some Zoom/Microsoft Teams (or other platforms) calls, these valuable cues are often lost, making it challenging to gauge the other party’s true intent.
  2. Delayed Responses: E-mail negotiations can lead to prolonged response times, causing frustration and potentially allowing the other party to control the pace of the negotiation.
  3. Misinterpretation: Written communication can often be misinterpreted, leading to misunderstandings that could derail the negotiation process.  This is especially true when some people use lazy and poorly written correspondence.

Mastering the Art of Electronic Negotiations

To become a better negotiator in today’s digital world, people must adapt their approach and utilize effective strategies to succeed in electronic negotiations.  Here are some tips to help you navigate this digital landscape:

  1. Craft Clear and Concise E-mails: Avoid lengthy, convoluted e-mails.  Be direct and organized – use bullet points or numbered lists to make your points stand out.  Write new and clear e-mail subject line titles.  Please stop sending e-mails on top of e-mail threads irrelevant to the new topic.  Make sure you incorporate deadlines, incentives, and penalties.  Don’t be lazy!
  2. Set the Tone: Begin with a polite and professional tone in your e-mails.  Clearly state your objectives and expectations for the negotiation process.
  3. Use the Power of Video: In negotiations using a digital platform, leverage video to establish a more personal connection. Maintain eye contact, smile, and project confidence.  Be careful about distracting and silly background images/props/furniture/bookshelves/artwork that people can see on Zoom calls.  Invest in proper technology. P.S. – I teach people how to look for, analyze, and decipher important clues about people’s personality types and corresponding negotiating styles from visual background images in virtual meetings.
  4. Request Real-Time Communication: Suggest real-time discussions through Zoom or other video conferencing platforms when appropriate.  This can help clarify details and build rapport.
  5. Hidden Meanings in Conversation: Pay meticulous attention to what you say/write.  Be alert regarding what the other side says or writes in negotiations.
  6. Mind Your Language: Be cautious with your choice of words.  Avoid jargon or ambiguous phrases that could be misinterpreted. Seek clarity and confirmation when necessary.
  7. Employ PDF Attachments Strategically: When sending price- or solution-based proposals, value proposition documents, or RFP/RFI/RFQ documents, ensure they are well-written and organized, easy to navigate, and visually appealing/interesting.  Use annotations or highlights to draw attention to critical points.  Contact me to learn more about the problems and opportunities associated with using the term “quote” in negotiations.
  8. Practice Patience: Don’t rush electronic negotiations.  Give the other side adequate time to respond and consider their position.  Impatience can lead to concessions that you might later regret.

During our negotiation skills training seminars, workshops, and negotiating coaching sessions, we provide our clients with turnkey examples, samples, templates, and tools to help people improve their communication practices to manage the negotiation process.  These “done for you” templates and tools help people close profitable deals successfully.

Conclusion

In the age of electronic negotiations, businesspeople in any industry must adapt and refine their skills to succeed.  While it’s true that purchasing professionals may have some advantages in the digital negotiating landscape, mastering the art of electronic negotiation is a crucial step toward levelling the playing field for salespeople and sales management.

You can build trust and foster successful negotiations by crafting explicit, concise e-mails, setting the right tone, and using technology effectively.  Electronic negotiations require negotiation skill development, patience, adaptability, and a keen understanding of digital dynamics.  With the tips from this article in your arsenal, you can navigate the digital negotiation landscape with greater confidence and success.

Take Action and Invest in Our Expert Negotiating Training and Negotiation Coaching Packages, Negotiation Tools, and Online Course to Become a Better Negotiator.

» Negotiating Skills Training: Book a tailored in-house presentation, seminar or learning workshop for your organization.

Speaking Engagements – Industry Associations and Companies: Book a tailored, engaging, and impactful 60-minute to two-hour presentation at an upcoming meeting, conference or convention.

» Negotiating Coaching Packages: If your company is facing a challenging high-value negotiation and you need an expert to help you or your team – or you own a small business – or you’re an individual who needs practical negotiation advice, you can benefit from my investing in one of my three proven, results-producing negotiation coaching packages for individuals, small business owners or corporations.

» Digital Negotiation Learning Products: You can purchase my three E-books containing powerful strategies and tips.  E-books: Forensic Blueprinting Questions For Effectively Selling and Negotiating Price or Fee Increases and Managing the Price-driven Sale, Selling and Negotiating Price or Fee Increases in Any Economic Environment, and Strategies and Tips on How to Effectively Manage the RFP/RFQ/RFI or Bid/Tender Process to Optimize Results and Outcomes.

You can also purchase the Negotiating Personality Type and Corresponding Negotiating Style Self-Assessment Questionnaire and Interpretation Results and my NEW Digital MP3 “Greatest Hits” Verbal Negotiating Phrases, Scripts, Questions, and Questioning Techniques.  These helpful tools are in digital format and can be easily downloaded.

I provide a discounted Master Negotiator Bundle with all my Digital Learning Products.

» Online Sales Negotiation Course: If you’re in sales, sales management or a cross-functional role that supports sales, you can benefit from enrolling in my NEW self-paced Negotiating for Sales Success online course.

» Meet Negotiating Coach® Michael E. Sloopka

No part of this copyright material can be used without written permission from Selling Solutions Inc.

Unmasking the Use of “Mirroring” in Negotiations: Is it Manipulation?

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Unmasking the Use of “Mirroring” in Negotiations: Is it Manipulation?

Mirroring: Building Rapport or Manipulation? The Truth Unveiled.

In negotiation and communication, mirroring is often promoted as a technique for building rapport and understanding.  However, what if I told you that beneath the seemingly innocent act of mirroring lies a subtle form of manipulation?  

It’s time to shed light on this often misunderstood and misapplied technique and provide insights and strategies to help people navigate mirroring.

The Mirroring Mirage

Mirroring, in essence, involves mimicking another person’s behaviour, gestures, speech patterns, or even emotions.  Its proponents will argue that mirroring fosters trust and connection – making it an invaluable skill in negotiations, sales, and interpersonal relationships.

However, mirroring can sometimes be less about building trust and more about subtly steering conversations and influencing decisions in a desired direction – theirs, not yours.

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The Deceptive Dance

Mirroring can be a covert tactic that some skilled negotiators employ to disarm you.  The people who use mirroring want to make you feel understood and ultimately lead you down their chosen path.  When done with ill intent, mirroring can be manipulative, making you more susceptible to persuasion that may not be in your best interest.

Here are some signs that you might be on the receiving end of someone using the mirroring technique:

  1. Too Perfect Parallels: If someone mirrors your words and actions to an uncanny degree, it’s a tell-tale sign of manipulation. Authentic mirroring typically involves subtle similarities, not exact replicas.
  2. Over-Engaged Agreement: Be wary of those who mirror your opinions and nod their head excessively.  This could be an attempt to create a false sense of alignment.  Pay careful attention to body language and hidden meanings in conversation.
  3. Constant Validation: When someone consistently affirms your emotions without offering their perspective, it could be a mirroring tactic to keep you on a particular emotional track.
How to Counteract Mirroring

Now that I’ve unveiled the mirroring mirage let’s explore strategies to counteract it effectively:

  1. Stay Mindful: Be aware of your behaviour and emotions during a conversation.  Recognize when mirroring is happening and assess whether it’s genuine or manipulative.
  2. Ask Open-Ended Questions: Encourage the other side to express their thoughts and opinions freely.  This strategy can disrupt the mirroring pattern and reveal the other side’s true intentions.
  3. Vary Your Responses: Instead of matching every move, deliberately change your behaviour. This will make it harder for the other person to mirror you effectively.
  4. Trust Your Gut: Trust your instincts if something feels off in a conversation.  Feel free to pause, reflect, or even seek a second opinion before making decisions.
  5. Seek Clarity: Ask for clarification when you suspect mirroring is at play.  This can prompt a more genuine conversation and expose any hidden agendas.
Conclusion

Mirroring can be a double-edged sword in the world of negotiation and communication.  While it can foster connection and trust when used authentically, it can also be a manipulative tool in the wrong hands. As professionals and individuals, our power lies in our ability to discern between genuine rapport-building and covert manipulation.

By staying mindful, asking the right questions, trusting our instincts, and learning counter maneuvers, we can navigate the mirroring maze with confidence and authenticity.

Take Action and Invest in Our Expert Negotiating Training and Negotiation Coaching Packages, Negotiation Tools, and Online Course to Become a Better Negotiator.

» Negotiating Skills Training: Book a tailored in-house presentation, seminar or learning workshop for your organization.

Speaking Engagements – Industry Associations and Companies: Book a tailored, engaging, and impactful 60-minute to two-hour presentation at an upcoming meeting, conference or convention.

» Negotiating Coaching Packages: If your company is facing a challenging high-value negotiation and you need an expert to help you or your team – or you own a small business – or you’re an individual who needs practical negotiation advice, you can benefit from my investing in one of my three proven, results-producing negotiation coaching packages for individuals, small business owners or corporations.

» Digital Negotiation Learning Products: You can purchase my three E-books containing powerful strategies and tips.  E-books: Forensic Blueprinting Questions For Effectively Selling and Negotiating Price or Fee Increases and Managing the Price-driven Sale, Selling and Negotiating Price or Fee Increases in Any Economic Environment, and Strategies and Tips on How to Effectively Manage the RFP/RFQ/RFI or Bid/Tender Process to Optimize Results and Outcomes.

You can also purchase the Negotiating Personality Type and Corresponding Negotiating Style Self-Assessment Questionnaire and Interpretation Results and my NEW Digital MP3 “Greatest Hits” Verbal Negotiating Phrases, Scripts, Questions, and Questioning Techniques.  These helpful tools are in digital format and can be easily downloaded.

I provide a discounted Master Negotiator Bundle with all my Digital Learning Products.

» Online Sales Negotiation Course: If you’re in sales, sales management or a cross-functional role that supports sales, you can benefit from enrolling in my NEW self-paced Negotiating for Sales Success online course.

» Meet Negotiating Coach® Michael E. Sloopka

No part of this copyright material can be used without written permission from Selling Solutions Inc.

Mastering the Art of Negotiation for Women

in /by

Mastering the Art of Negotiation for Women

Empowering Women in Negotiation: Turning Challenges into Opportunities

Negotiating is an essential life skill for everyone.  People negotiate all the time – in their personal, social, and especially in their business lives.  Regardless of gender, there’s no such thing as a “born negotiator” – some people have a natural feel for the process and practices.  In contrast, others must work to acquire, learn, and practice their negotiation skills to improve outcomes in any negotiation.

Based on our research and after delivering our negotiating skills training programs to over 50,000 people in 31 countries worldwide, below are the insights and tips concerning women and the art of negotiating.

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Understanding the Approach to Negotiating:

  • Women need to approach negotiating not as a contest or competition as many men often do – but as a chance to work to solve problems that affect the people involved in any negotiation.
  • Generally, men ask for what they want at least two to three times more often than women.
  • Women need to learn to negotiate as women – not as men.  There is no such thing as a “gender-based” negotiating process, methodology, strategies, and tactics. There are gender and cultural “nuances” associated with some negotiations.

Common Challenges Faced by Women in Negotiation:

  • Gender-based standards and social expectations for behaviour in some cultures and professions may often require some women to behave modestly and unselfishly.  If some women rebel against these historical standards, they may be seen as “pushy or difficult” to work with.  When many women experience ridicule or rejection, they may get anxious when asking for what they want.  Anxiety and discomfort can generally deter some women from negotiating.
  • Many women’s gender-based desire to “foster and protect” relationships can make them fear that a disagreement or conflict may arise during a negotiation.
  • Whenever many women have negotiated effectively, resulting in a Win-Win outcome, they’ve told me that the most crucial strategy was “choosing to negotiate in the first place.”
  • Many women often worry about the impact that negotiating may have on their personal, social, and professional relationships.

The Gender Bias in Negotiations:

  • Many people have historically reacted somewhat negatively to women involved in negotiations.  They feel that any woman who decides to negotiate may be acting in a “competitive” or “aggressive” manner.
  • Many people have historically reacted somewhat negatively to women involved in negotiations.  They feel that any woman who decides to negotiate may be acting in a “competitive” or “aggressive” manner.
  • Some women may worry about making mistakes when negotiating, so they don’t try to negotiate. From a very young age, some women are taught to focus on the needs of others – rather than on their specific wants and needs.  This “non-asking behaviour” can be a “psychological straitjacket” for some women.
  • To protect personal connections, many women may ask for what they want indirectly.  When women ask for what they want, they generally ask for less than they want, and they sometimes try to get what they want by attempting to be more “deserving” – by working harder and longer hours.
  • Some women believe they’ll be given what they want and deserve – without asking for it or trying to negotiate. Unfortunately, in certain situations, some women may become insecure and believe they don’t deserve what they are asking for.

Strategies for Women in Negotiation:

  • Negotiation should be a collaborative process to find the best solution (Win-Win outcome) for everyone.  This approach to negotiating is more attractive to most women – potentially making them less confrontational, competitive, and argumentative than men.  This approach can usually make women more effective negotiators than their male counterparts.  Note: In our seminars, learning workshops, and my one-on-one coaching sessions, we teach a Win-Win approach to negotiating.  Our Negotiating Behaviour Matrix diagram helps people understand what approach to take during negotiations (e.g., concern for substance versus concern for the relationship.)

Women must understand and accept the current situation impacting most negotiations. Women must learn a sustainable and repeatable negotiating process, methodology, strategies, tactics, and techniques they can utilize and implement in their personal, social, and business negotiations.

Pursuing a “gender-based” approach to developing their negotiating skills will not be effective.  Women must capitalize on their inherent strengths and address their weaknesses in skill development.

In conclusion, women should consider the following five suggestions to improve their negotiating process and skills:

  1. Develop personal negotiation strategies, tactics, and techniques to help overcome the “emotions” associated with negotiating.  Start by moving past these “emotions” and treat negotiations like an art, a science, and a sport.
  2. Don’t be intimidated or afraid of the negotiating process or the people involved in any negotiation.
  3. Deal with any negotiation from a position of personal strength by developing competence through skill building.
  4. Invest in taking a practical, educational negotiating seminar or learning workshop.
  5. Learn and practice the proven key verbal negotiating phrases, scripts, questions and questioning techniques to help women overcome barriers when negotiating with others.

Take Action and Invest in Our Expert Negotiating Training and Negotiation Coaching Packages, Negotiation Tools, and Online Course to Become a Better Negotiator.

» Negotiating Skills Training: Book a tailored in-house presentation, seminar or learning workshop for your organization.

Speaking Engagements – Industry Associations and Companies: Book a tailored, engaging, and impactful 60-minute to two-hour presentation at an upcoming meeting, conference or convention.

» Negotiating Coaching Packages: If your company is facing a challenging high-value negotiation and you need an expert to help you or your team – or you own a small business – or you’re an individual who needs practical negotiation advice, you can benefit from my investing in one of my three proven, results-producing negotiation coaching packages for individuals, small business owners or corporations.

» Digital Negotiation Learning Products: You can purchase my three E-books containing powerful strategies and tips.  E-books: Forensic Blueprinting Questions For Effectively Selling and Negotiating Price or Fee Increases and Managing the Price-driven Sale, Selling and Negotiating Price or Fee Increases in Any Economic Environment, and Strategies and Tips on How to Effectively Manage the RFP/RFQ/RFI or Bid/Tender Process to Optimize Results and Outcomes.

You can also purchase the Negotiating Personality Type and Corresponding Negotiating Style Self-Assessment Questionnaire and Interpretation Results and my NEW Digital MP3 “Greatest Hits” Verbal Negotiating Phrases, Scripts, Questions, and Questioning Techniques.  These helpful tools are in digital format and can be easily downloaded.

I provide a discounted Master Negotiator Bundle with all my Digital Learning Products.

» Online Sales Negotiation Course: If you’re in sales, sales management or a cross-functional role that supports sales, you can benefit from enrolling in my NEW self-paced Negotiating for Sales Success online course.

» Meet Negotiating Coach® Michael E. Sloopka

No part of this copyright material can be used without written permission from Selling Solutions Inc.