Negotiation Preemption to Win

95% of Negotiations Can be Preempted!

Now that is one H#*l of a claim! But it is the truth.

By understanding a few key points a salesperson, manager or negotiator can eliminate 95% of the negotiations they get caught in.

In the book Business Experts Guide to Business Success, Andy Miller lays it out how we get caught up in negotiations when we really did not have to.

Here are a few key points that both Andy and I agree can eliminate negotiations....

First, lets understand how and why negotiations occurs.

Most business owners and salespeople focus on the wrong end of the negotiations. That is once the other party, customer, plants the negotiations in front of them, they then try to plan on what they can give up and what they can not! Wrong end, how about eliminating negotiations before it ever starts!

If you have read my articles you know I get on the soap box about asking the right questions, understanding the other parties view and situation and then questioning why it exists.

Guess what, the proper questions at the right time will eliminate 95% of all negotiations!

John sells a competitive office product to a variety of customers. The company is a high quality unit with a great track record and great customer service. Of the five other competitors in the area, John's company is rated as the best, but not the cheapest.

The Interval Company has been buying from John for the past year with no real issues. Bill is the buyer and today asks John for a discount on the product or he'll have to go to the competition.

John is flabbergasted! What did we do wrong? Is the competition undercutting us by that much? I'll have to ask the manager.

Thus John finds himself in a price negotiations put in his lap by the customer.

As John returns to the office and waits for the manager to be available, he runs into Fawn, the top producing salesperson.

"You look a bit down" says Fawn.

"Ya, I keep getting beat up by pricing lately, got another one that insist we discount or they go to the competition." reply s John. "How do you keep the margins up and deal with the price issue Fawn, you always seem to have the highest sales with the best margins?"

"Well, I keep my clients honest." Fawn replies.

"What, you keep your clients honest. What does that mean?" snaps John.

"I just never allow the clients to put me in a negotiation position. It's dealt with up front so there never is a negotiations."

"Can you help me understand what you do, this negotiations stuff is killing my pay check!" ask John.

"Buy me lunch and I see what I can do for you." responds Fawn.

John leaves a message for the sales manager that he is leaving and will talk later that afternoon.

They place their lunch order and John launches in, "Ok what is the secret that no one else knows but you?"

Fawn laughs and leans in towards John. "Ok, here goes, its a 3 letter word, ASK!"

"Ask!!" exclaims John, "What does that have to do with price negotiations?"

"Absolutely everything. By asking the right questions up front you can establish expectations and understandings. When you have these set up front, the customer tries to negotiate later, they can't!" says Fawn with a smirk.

"Ok, you have to help me understand this. What do you ask, how do you say it, how does it work?" questions John.

" When I start the sale process, I always ask questions about the customers expectations and why those expectations. This gets all the issues that might be negotiated later, out on the table now. I have a list of issues that I specifically ask about even if the customer does not bring them up. We establish what the customer expects, why they expect it and why these expectations are important to them. It takes extra time and sometimes the customer is a bit reluctant, but I gently keep on it until all the issues, reasons and expectations are on the table."

"Oh, that sounds awful pushy to me, I'm not sure I could do that." stammers John.

"Not at all John, these are business people, they understand setting expectations and standards. They may not always want to, but they do if you handle it effectively." Fawn response gently.

"But what if they flat refuse to do that, I know several of my customers that I can see really refusing to do that!" blurts John.

"Well, I've only had one client that I could not get to the point I needed, so I chose not to have them as my customer and suggested they contact one of our competitors. All the others came to the tale." stated Fawn in a matter of fact way.

"Ok, I'll buy that for now, but what happens when several months later they push the price negotiations at you, how do you handle it then?" inquires John.

"Great question, because it always does happen! When it does I ask them what has changed to cause the request? How are things different from when we established the expectations? What expectations have not been met? As well as a few others. They generally stop in their tracks and give me a great order and thank me for being such a professional." explains Fawn.

Johns eyes are wide open and his jaw is dropped in disbelief. "You really do that and get by with it?"

"All the time John, it's just business. The customers are only testing us, they want professionals that can handle themselves and it's a way to see how much they can trust us." explains Fawn. "If you understand that then asking the questions and holding them accountable is easy."

"Wow, that seems almost impossible to me, my customers never give me that kind of information and they always seem to want more from me, not less!" laments John.

"That customer this morning, what if you went back to him and asked "What has changed that cause you to consider a competitor? What is it we have not fulfilled for you that was expected?" and see what happens. The worst is they tell you the truth and now you can deal with it." Fawn inquires.

"Ok, I think he will see me yet today and I'll give it a try." John laments.

Just as Fawn is leaving the office later that day, John comes bounding in.

"That was the best dinner investment ever Fawn! I went back, asked the questions and you were right, he was just testing me and I got an even bigger order from him at our regular rates! Thank you for helping me on this!" Exclaims John.

The sales manager walks around the corner and asks what is going on and if Johns still wants to see him.

"No, got it all taken care of and all it cost me was lunch." John responded.

Fawn just smiled.

Summary: To minimize negotiations ask the right questions up front and hold your customers accountable for those expectations later. Negotiations will be a thing of the past.

By the way, where was the sales manger when all this was going on?

To your success, it's your choice!
HG :)

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