Archive for May, 2010

Tactics 101: Giving Away Nothing & Becoming A Litterbug

Friday, May 28th, 2010
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Is It Really A Gift If There’s Nothing In The Box?

Is It Really A Gift If There’s Nothing In The Box?

In the world of negotiating, the actual process of negotiating is very much an art. In order to be good at it, a master sales negotiator needs to have a complete collection of negotiating tactics at his or her disposal. Not every negotiation will call for every tactic to be used, but as any auto mechanic can tell you, having the right tool for the job can make your life a lot easier.

Empty Concessions Make The Perfect Gift

As a negotiator you will be expected to make concessions to the other side of the table during the negotiation in order to keep making progress towards an eventual deal. However, sometimes you may find yourself in a bind – they want a lower price and you can’t go any lower than you already are.

It is in cases like this that empty concessions can come in quite handy. Ultimately, the value of any given concession is determined by how the side that is getting it views it. This means that by identifying a negotiation point that means very little to you, but which means a great deal to the to the other side of the table, you will have found the perfect empty concession.

When you find yourself backed into a negotiating corner, an empty concession is exactly the kind of tool that you can use to increase the other side’s level of satisfaction without having to give in on a point that is important to you.

Littering Really Isn’t All That Bad

In some negotiations, it can seem as though the other side of the table holds all of the cards – you are at their mercy. However, this is never the case. The concept of “littering on their lawn” simply means that you have the ability to make statements that will cause them to pause and realize that what you are offering them has more value than they had originally thought.

The following four examples show how negotiating litter can be made to work for you:

  • Value: pointing out to the other side that yes, they could strike a deal with another company for a lower price; however, they would end up getting less value from the deal for the following reasons…
  • The Price Is Right: sitting down with the other side and reviewing both your costs and your prices can quickly show them that you really are making a reasonable amount of money on this deal – not too much, not too little.
  • We’re Different: point out why comparing your offer to another firm’s offer is not really an apples-to-apples comparison. Show that your firm actually provides many additional services.
  • Total Cost: just focusing on the price of the item being bought or sold can be misleading. Taking the time to discuss all of the costs of the deal, both before and after the sale, can show that your total costs are lower than the competition.

What All Of This Means For You

Nobody is ever born a top-notch sales negotiator. Instead, we all improve a little bit during every negotiation that we are involved in. A key part of this improvement is making sure that we know all of the tactics that we’ll need.

Concessions that mean very little to you, but which mean a great deal to the other side of the table are a fantastic tool to use when you find yourself backed into a corner. Casting doubt in the minds of the other side by littering on their carefully planned reasoning can cause the other side to become willing to reach a deal much quicker.

They say that knowledge is power and the more negotiating tactics you know, then the more negotiating power you will have…

- Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World Negotiating Help For Technical Staff

Question For You: If the other side doesn’t ask, should you make empty concessions anyway since they don’t mean anything to you?

Click here to get automatic updates when The Accidental Negotiator Blog is updated.

What We’ll Be Talking About Next Time

If you’ve ever taken the time to look at how a Ferris wheel is built, then you already know about one of the key negotiating techniques that top sales negotiators use when they need to defend a price…

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Posted in tactic | 2 Comments »

2 “Never Fail” Secrets To Getting Your Way In A Sales Negotiation

Friday, May 21st, 2010
Image Credit Sometimes The Shortest Words Are The Most Powerful

Sometimes The Shortest Words Are The Most Powerful

Hey, did you read any of those Harry Potter books (or at least see one of the movies?) If you did, then you probably got drawn into the world of magic and wizards that the books are all about. It sure seems as though in these stories that there is a magic portion or a curse to do just about anything. The stories are fiction but it turns out that sales negotiators do have some real magic that they can use to get what they want during a negotiation…

The Power Of The Word “No”

For some odd reason in Western cultures there seems to be a social stigma associated with saying the word “no” to someone – even when we’re in the middle of a sales negotiation. If you want to be successful, you’re going to have to learn to get over this hang up.

I’m not talking about just saying “no” and then turning your back to the other side of the table. Instead, I’m going to suggest a two-part “no” strategy. The first part, naturally, consists of you saying “no”. The second part is where you take the time to explain to the other side of the table WHY you said no. The goal here is to explain your reasoning in a clear and logical fashion.

One of the reasons that so many of us really dislike saying (or sticking with ) a “no” is because we think that it’s going to make the other side of the table feel bad. What’s interesting about this is that more often than not, we’re wrong about this.

Getting a “no” from us might be exactly what the other side of the table wants. It closes the door on this part of the negotiation and so they can move on to the next part. If asked by their bosses, they can at least say that they asked and we said “no”.

In the world of negotiating, just about everyone agrees that the Japanese are the best at saying “no” . They have a way of saying it in such a way that you don’t feel bad when you hear it: “yes, but …” or “no, maybe…”.

Give Them An Opportunity To Vent

Just how do you think your response of a “no” is going to make the other side of the table feel? Sad? Angry? You bet! When they are feeling this way they are going to want to vent, let off some steam. If you are wise, you’ll go ahead and let them do this.

The reasoning behind this strategy is subtle, but complex. By allowing the other side to go on a rant, you are deliberately not restricting their actions. If you tried to do this they just might go postal and storm out of the negotiations. By allowing them to do some yelling, you are providing them with a safe way to work through their frustrations.

Another point that you should keep in mind is that when the other side is venting, they may actually be showing off for the rest of their team. Remember that when the sales negotiations are done, they are going to have to report to their bosses who will ask if they did everything that they could in order to get the best deal possible. Reports of their tirade may serve to convince their internal audience that they did a good job.

What All Of This Means For You

Forget the magic that Harry Potter is able to call upon, today’s sales negotiators need to find some practical magic. The good news is that there seems to be plenty of it around for us to use.

The simple word “no” can be the one word that allows you to get what you want during your next sales negotiation. You just need to find the courage to say it and stick with it. Once you’ve said it, you’ll need to give the other side of the table a chance to work out their frustration.

If you can do both of these things, then you’ll be that much closer to striking a good deal during your next negotiation. Who can say “no” to that?

- Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World Negotiating Help For Technical Staff

Question For You: Once you’ve said “no” to something, do you think that you can ever change you mind and say “yes” to it without losing face?

Click here to get automatic updates when The Accidental Negotiator Blog is updated.

What We’ll Be Talking About Next Time

In the world of negotiating, the actual process of negotiating is very much an art. In order to be good at it, a master sales negotiator needs to have a complete collection of negotiating tactics at his or her disposal…

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Posted in negotiation tactics | 1 Comment »

Sales Negotiations – Hollywood Style

Friday, May 14th, 2010
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Even In Hollywood, Sales Negotiations Are Not Make-Believe

Even In Hollywood, Sales Negotiations Are Not Make-Believe

Can anyone remember what happened way back in November of 2007? That’s when all of the writers in Hollywood went on strike. After that the Screen Actors Guild walked out. Talk about a mess. Well guess what, in the first half of 2011 this could all happen again – those contracts are once again just about ready to come up for re-negotiation once again…!

What Went Wrong Last Time

There were a whole host of things that caused the last set of Hollywood negotiations to go wrong. For one thing, during the process the Screen Actors Guild ended up firing its chief negotiator, Doug Allen, due to internal disagreements.

On the movie making side of the table, things were not much better. The labor problems were used as an excuse to lower everyone’s pay and get out of deals that the studios no longer wanted to be in.

In a nutshell, both sides of the table ended up being unhappy. Clearly this is not the way to conduct a sales negotiation.

What Might Be Different This Time Around

You would think that all of the parties involved would have learned from last time and would be taking steps to make sure that history did not repeat itself. Of course, you’d only be partially correct.

Time marches on and this time around the negotiators who sit down across from each other at the table will be a different set of folks. That may help things just a bit.

Additionally, both sides are already starting to make noises about the upcoming negotiations. They are saying that they are committed to doing a lot of talking. That sure sounds like a hopeful sign, right?

However, be careful. There are a lot of minefields in this set of talks. The directors will be looking for ways to get higher residual payments for the use of their work. How to handle the ever-growing area of “new-media” will be a big bone of discussion (thanks a lot Apple iPad!). Once again, the role of writers in reality shows will come under fire as these shows continue to grow in popularity.

What All Of This Means For You

As professional sales negotiators the looming Hollywood negotiations offer us a unique opportunity to see multi-party sales negotiations played out in the public eye.

There will be a lot to watch and learn here. We should expect to see a lot of press leaks, public statements, and perhaps even some angry storming out.

In the end, we all know that they’ll reach a deal. However, it’s how they end up getting there that will provide the real learning experience…!

- Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World Negotiating Help For Technical Staff

Question For You: Do you think that the actors and writers should plan on stopping work or should they offer up the hope that a strike can be averted?

Click here to get automatic updates when The Accidental Negotiator Blog is updated.

What We’ll Be Talking About Next Time

Hey, did you read any of those Harry Potter books (or at least see one of the movies?) The stories are fiction but it turns out that sales negotiators do have some real magic that they can use to get what they want during a negotiation…

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Posted in strike | No Comments »

2 Negotiating Secrets That Nobody Else Will Tell You

Friday, May 7th, 2010
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Just Because The Other Side Asks For A Handout, Doesn’t Mean You Have To Give It

Just Because The Other Side Asks For A Handout, Doesn’t Mean You Have To Give It

Ok, so it’s time to get down and dirty about this sales negotiating stuff. Time after time I keep seeing sales negotiators making the same two mistakes over and over again and it just has got to stop. You can build the best product in the world, have the best sales team, but if you keep dropping the ball when it comes to negotiating the sale, then it’s all for naught.

You Can’t Always Get What You Want

The Rolling Stones got it right when they released a song with this name. All too often I see sales negotiators busily writing down every demand that is made by the other side during a negotiation.

Hold on a minute here, do you expect to get everything that you ask for during a sales negotiation? I suspect not. Why do we all seem to automatically assume that the other side is not going to be willing to reach a deal with us unless all of their demands are met?

The reality of the situation is that the other side, just like us, expects to only be partially successful. Now of course, this is not going to keep them from making a lot of demands on us. However, by no means do they expect to be 100% successful.

A key point that we need to remember when we are involved in a sales negotiation is that many of the concessions that the other side may be asking for were not created by the negotiator who is sitting at the table. Rather they were passed to him or her with instructions to include them in the negotiations. What this means for you is that the other side is obligated to make the demand, but may not have a lot vested in getting what they are asking for on this point.

Additionally, in the world of horse-trading that modern sales negotiations are conducted in, you need to expect the other side to include several “straw-issue” requests. These are demands that they really have no hope of actually getting you to agree to; however, once on the table they can be used as bargaining chips.

It’s All About The Value To The Customer

Whatever the product you are trying to sell, it certainly has some benefits associated with it. All too often sales negotiation professionals overlook one of their most powerful tools – using the benefits of their product to strengthen their side of the discussion.

What we need to realize as negotiators is that by simply taking the time to customize whatever the benefits that our products have in order to address the specific needs of the other side of table (or their customers) we can strengthen our negotiating position.

To take this one step further, if we are able to actually associate a dollar value with each of our product’s benefits then we will be in a much stronger position. Not only will this increase the perceived value of what we are bringing to the table, but it will also help to diminish any other offer that might be competing against us.

What All Of This Means For You

A sales negotiation is very much like a carefully scripted dance. Both you and the other side have your roles to play and how you play them depends on what the other side does.

As sales negotiators we need to remember that just because the other side asks for something, it doesn’t mean that they truly expect to get it. We also have to take the time to study what we have to offer and to turn its benefits into quantifiable dollar value benefits for the other side or their customers.

Nobody ever said that this negotiating thing was going to be easy to do. If we want to be successful, then we’re going to have to take the time to understand what the other side is up to and we’re going to have to remember to do our homework before we start our next sales negotiation.

- Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World Negotiating Help For Technical Staff

Question For You: Do you think that your product’s benefits are more valuable to the other side or to their customers?

Click here to get automatic updates when The Accidental Negotiator Blog is updated.

What We’ll Be Talking About Next Time

Can anyone remember what happened way back in November of 2007? That’s when all of the writers in Hollywood went on strike. After that the Screen Actors Guild walked out. Talk about a mess. Well guess what, in the first half of 2011 this could all happen again – those contracts are once again just about ready to come up for re-negotiation once again…!

Tags: , , , , , , , ,
Posted in negotiation skills | 2 Comments »