"How To Avoid The most Costly Mistakes Most People Make When Negotiating - Part 2
"How To Avoid The most Costly Mistakes Most People Make When Negotiating - Part 2
This results in discussions batting back and forth about price. This doesn't get either party anywhere.
Key Negotiation Principle #4: Set the scene to show you are not a desperate seller
By careful sales planning and sales strategy it is possible to position yourself in the marketplace as an expert, an in demand provider, the only possible solution provider and the only solution to the other persons problem. If the scene is set where you are perceived as being desperate for the business then the other party has a potential advantage over you.
Key Negotiation Principle #5: Plan Your Objectives and Concessions
Before you enter into any business negotiation always - and I mean always - sit back and work out what are your top 3 expectations are from the negotiation.
Take out a piece of paper and draw three columns down the middle. In column 1 list all the separate elements of your product or service offering. In column 2 write the minimum price that you will accept for that part. In column 3 write down the bare minimum concession that you are prepared to take.
Never, Never give away anything without getting something back in return. If you do then you are at best bargaining and at worst conceding. If you have had a good rapport throughout, have worked on delivering a high value to the prospective client then you should be comfortable with your offer. If the other party is still there with you then they are roughly comfortable with your offer too. Be confident in the value you bring and demonstrate that if the other party wants you to give away something then they have to give away something too!
Key Negotiation Principle #6: Trade Something with High Perceived Value
This is by far the most underused and most potent negotiating method.
When you are considering your concessions (Principle 5) look at the products and services that you offer. What can you trade in a concession that has a high perceived value for the other party but little or no cost to you? This is the ultimate win-win solution/
If I was negotiating hard with an car dealer and was looking to get him to drop the price by £1,000. He could respond by offering me 3 Free services and complete car valets - each valued at £350. For me this is a great deal that could lead me to sign the paperwork. For the car dealer this is a cheap alternative to dropping his price by £1,000. Can you see why?
*The real cost of the service to the car dealer is probably around £50 per service - not £350. So realistically he has dropped his price by £150.
*The services are spread out over a period of one or two years therefore is having a minimal impact on his cash flow. Instead of sacrificing £1,000 now he has sacrificed three time £50 at some time in the future.
Well there you go. I guarantee that if you utilise the 6 negotiating principles contained within the two newsletters then you will never lose out in a negotiation again. More importantly, neither will the other party.
How To Avoid The most Costly Mistakes Most People Make When Negotiating Part 2 - To learn more about this author, visit Peter O'Donoghue's Website.
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Without doubt, negotiation is the key thing that workshop attendees think that there is a 'black art' to. I am going to prove to you that there is no black art to negotiation - and in fact you can be a master at it. Most people tend to just end up haggling or bargaining when they think they are negotiating.
This results in discussions batting back and forth about price. This doesn't get either party anywhere.
Key Negotiation Principle #4: Set the scene to show you are not a desperate seller
By careful sales planning and sales strategy it is possible to position yourself in the marketplace as an expert, an in demand provider, the only possible solution provider and the only solution to the other persons problem. If the scene is set where you are perceived as being desperate for the business then the other party has a potential advantage over you.
Key Negotiation Principle #5: Plan Your Objectives and Concessions
Before you enter into any business negotiation always - and I mean always - sit back and work out what are your top 3 expectations are from the negotiation.
Take out a piece of paper and draw three columns down the middle. In column 1 list all the separate elements of your product or service offering. In column 2 write the minimum price that you will accept for that part. In column 3 write down the bare minimum concession that you are prepared to take.
Never, Never give away anything without getting something back in return. If you do then you are at best bargaining and at worst conceding. If you have had a good rapport throughout, have worked on delivering a high value to the prospective client then you should be comfortable with your offer. If the other party is still there with you then they are roughly comfortable with your offer too. Be confident in the value you bring and demonstrate that if the other party wants you to give away something then they have to give away something too!
Key Negotiation Principle #6: Trade Something with High Perceived Value
This is by far the most underused and most potent negotiating method.
When you are considering your concessions (Principle 5) look at the products and services that you offer. What can you trade in a concession that has a high perceived value for the other party but little or no cost to you? This is the ultimate win-win solution/
If I was negotiating hard with an car dealer and was looking to get him to drop the price by £1,000. He could respond by offering me 3 Free services and complete car valets - each valued at £350. For me this is a great deal that could lead me to sign the paperwork. For the car dealer this is a cheap alternative to dropping his price by £1,000. Can you see why?
*The real cost of the service to the car dealer is probably around £50 per service - not £350. So realistically he has dropped his price by £150.
*The services are spread out over a period of one or two years therefore is having a minimal impact on his cash flow. Instead of sacrificing £1,000 now he has sacrificed three time £50 at some time in the future.
Well there you go. I guarantee that if you utilise the 6 negotiating principles contained within the two newsletters then you will never lose out in a negotiation again. More importantly, neither will the other party.
How To Avoid The most Costly Mistakes Most People Make When Negotiating Part 2 - To learn more about this author, visit Peter O'Donoghue's Website.
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
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