Tag Archive for: Negotiating Coaching

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.

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.

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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.

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.

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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.

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.

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Mastering Negotiation: Five Key Insights for Greater Success

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Mastering Negotiation: Five Key Insights for Greater Success

Five Key Insights You Need to Know About Negotiating for Success

Negotiating is an integral part of our daily lives, and understanding negotiating dynamics can be a game-changer for people.  Negotiating is an essential life skill, and it’s a learned skill.  Whether you’re negotiating with customers, suppliers, contractors, employees, employers, cell phone providers, banks – or you’re discussing curfew with your teenager, below are five vital things to keep in mind:

1. Almost everyone is a negotiator – people are negotiating all the time.

You could be involved in a negotiation whenever you communicate with another person.  Negotiation isn’t just for labour disputes and negotiations, government trade talks, dispute resolution, mediations, and athlete negotiations with pro sports teams.

If you can master the art of structuring your negotiations so you get what you want and the other side can get what it wants, you’ll increase your success while eliminating anxiety, stress, and discomfort.  People need to stop negotiating based solely on their “instinct” – or a pattern of having some previous lucky outcomes that didn’t involve using proven negotiation skills.

2. Everything you want is owned or controlled by others.

If you want something, you’ll find it’s usually owned or controlled by someone else.  To get what you want, you’ll need to take the time to learn how to get it.  To achieve your goals, learn how to deal with people by helping them get what they want – rather than dominating or taking advantage of them.  Empower others to get what they want and watch the doors of opportunity swing open.

3. Negotiating involves predictable maneuvers.

Negotiation shouldn’t be a disjointed and chaotic process.  There are predictable responses to maneuvers that take place in most negotiations.  In our negotiating training seminars, workshops, and negotiation coaching sessions, we refer to these maneuvers as gambits and countergambits; they refer to strategic exchanges to gain an advantage in any negotiation.  The term gambit is chess parlance that means maneuver for advantage.

You will want to use certain negotiation gambits to your advantage; however, you will also need to know a wide range of gambits and countergambits, even those you might not use, to protect yourself if gambits are used against you.

4. Three essential factors can make or break your negotiations:

Information: Knowledge about the other side is critical.  Understand your counterpart’s needs, desires, and objectives.  Do your research well in advance of negotiating.  The side with the most useful information usually does better in a negotiation.

Time: Negotiations often have deadlines that add pressure. Use time wisely to secure favourable outcomes.  Time limitations add pressure for a settlement.

Personal Power: The ability to influence others is a potent tool.  Learn more about the eight forms of personal power and how to wield it while guarding against its misuse effectively.

5. People have four different personality types and corresponding negotiating styles:

Four major personality types influence a person’s negotiating style.  This is not about using a Myers-Briggs or DISC profiling self-assessment tool.  The four negotiating personality types include – Analytical, Pragmatic, Extroverted, and Amiable.  Learn more about your personality type, corresponding negotiating style, and how to interact more effectively with others.

Contact me to learn more about determining your negotiating personality type and corresponding negotiating style through a self-assessment questionnaire and interpretation information.

Summary:

By understanding these five fundamental principles, you’ll be better equipped to navigate the intricacies of negotiation, achieving your objectives, and fostering positive relationships.

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

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.

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