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Listen : to the person do not interrupt
Understand: what the person is trying to say. Many times people beat around the bush
Identify : The key factors that the person is trying to put across. (product, idea, promotion)
After you know what the person is trying to get at, you can:
Think: as to the validity of his request or claim, if you support or not and you can use all the key points in the conversation to either support or counter the claims. This would be an on going process until a resolution is reached.
Respond: you counter the claims or support the claim in accordance to the THINK part.
Hi Mahmoud,,,
here is small steps i follow when engaging in a new business negotiation:
- Prepare your position with respect to pros & cons.
- Simulate the best case and worst case scenarios in your "Hidden Agenda".
- Start with the best suits your position/benefit.
- Set clear expectations.
- Never give up :-)
Effective negotiation includes a discovery process, much like sales, where you focus on the needs and wants of the other party through honest and open-ended questions. This will enable you to discover many things, including strong and weak points, opportunities you may not have thought about, what is most and least important to them, and that almost inevitable issue that they're holding onto the tightest--and it's often something of more personal than serious monetary value. It's usually an issue that will be a deal breaker if not resolved to the satisfaction of the other party, and can even be strong enough to be an entire deal maker.
Prepare! Know who you are dealing with.
Listen.
Stay cool.
Establish trust.
Never use round numbers. Be clear and exact.
Know under what circumstances can the deal break.
And the last but certainly not least always let let the other party walk away. Whether you drive to hard a bargain, the deal is too rich for you make your offer and let the other side walk away if they don't want it. It is being honest and straightforward on what you are willing to do!
1- Get to know very much details about what you're negotiating where knowledge gives negotiating power.
2- Study all options you can offer VS what the other side is expecting.
3- Use every possible way to make him believe that you will leave the deal if he doesn't take your rock bottom offer.
4- Use intermediaries who are loyal to you.
5- When you are seeking something less than the market offers, you may state that it's top management directions and you have budget limitations.
6- Always look for other alternatives where is gives you much power while negotiating when you have a good alternative.
7- Look for other deals that are similar to what you want where they were already closed.
Preparation and expecting every possible questions from the customer is the first step in negotiation.During a sale we need to listen properly , understand the points put forward by the customer , we also need to know our objectives and outcome of the negotiation. We should show that we re not selling a product /service but a solution to the customer. we need to know the customer properly and make him have a better perception about our company.
1-build your confidence through knowledge:
-who decision maker,
-what is the context.
-difficulties.
2-prepare your side:
-set objective: maximum & minimum agreement
-set your negotiation mandate: the top three points which define your authority.
-Set approach: SWOT analysis
- plan the negotiable
-calculate your BATNA(best alternative to a negotiated agreement).
3- development the negotiation from the other side's perspective:
- what is their authority.
-what is their experience.
-what are the common .
-assessment of the other side BATNA.
4:role play the negotiation
- practice the negotiation
-Plan the expected response from other side.
-try to make the opening offer
5-mental preparation:
-remember to stay objective.
-be clear about big picture
-keep your emotions in check & hidden from other side.
-look out for negotiating tactics that other side may use.
-manage your own & their expectations.
- call their bluff
6- conduct the negotiation
-build report
-build trust.
- both parties happy win-win.
-secure your 'must have" points
-dont make promises you cant keep.
-summarize & record written agreement
-talk about next step.
7- lesson learned:
-communicate results to all stakeholders.
-evaluate result with objectives
-get feedback from your team.
develop revise plan for next time.
Negotiating is an immediate interaction with the prospect. And if you look at this as a lose, then you will loose. Generally speaking, I would recommend to have these things in mind:
1. Be confident. If you’re not confident from the start, there is little chance you will be successful.2. Know what the customer wants. Don’t assume. You must know specifically what they’re looking for. 3. Know why they’re looking to you for what want. If they don’t value what you have, there is little possibility you will be able to negotiate a deal.
4. Know their timeline for making a decision. Closer you are to their need to make a decision, the more anxious they will be to secure a deal.
5. Make sure you are dealing with the person who can make a decision. Never negotiate with anyone other than the decision make.
6. Know what the customer values and why. The bigger your list of things the customer values, the more points of leverage you can use.
7. Know what the customer doesn’t value. Nothing will destroy you more than offering the customer something they don’t value. Chances are they will still take it, but don’t think for a moment you’ll be any closer to securing a deal.
8. Know what you can give that the customer will value, but that won’t cost you much. Key is to offer the customer things they will place a high value on but cost you little.
9. Know your element of time with regard to how slow or fast you can go. Time is a far more important factor in negotiating than most people realize.
10. Know your walk-away point and how you intend to do it if you do need to walk away.Happy negotiations!
There is no rocket science.. In any type of business scenario it is vital to understand 'What your customer/lead wants from you, understand his requirements' thus 'SPEAK LESS : LISTEN MORE" should be the main principle.
Along with know exactly your costs, your bottom line to be maintained, what is the minimum margin you need to maintain & negotiate or be flexible based on type o buyer he/she is (Small or large)
Ability to explain the potential consumer's about the importance of your products, it's key features, comparisons based on 'What your potential consumer is looking for" would also be equally vital.
:-)
