Archive for the ‘negotiation skills’ Category

Sales Negotiators Know That It’s Ok To Be Irrational

Friday, September 30th, 2011
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Crazy Sales Negotiators Can Often Get Their Way In A Negotiation

Crazy Sales Negotiators Can Often Get Their Way In A Negotiation

How do you view yourself when you are conducting a negotiation? Do you see yourself as poised, confident, and above all rational? I think that most of us see ourselves this way. However, it turns out that we might be missing something here – there is a real power in being irrational sometimes…

Just What Does Irrationality Look Like During A Negotiation?

So let’s think about this for a moment: do we really know what rational people look like? I mean, we think that we do. We believe that we have conversations with them each and every day. They seem to keep their voices in a low conversational tone, they listen quietly when you are talking to them and they respond with carefully though out responses to what you’ve just said.

So if we can all agree on what the negotiation style of a rational negotiator is, it does bring up the question of just exactly what does the negotiating technique of an irrational negotiator look like?

The answer is that it looks pretty much like what you would expect it to look like. Irrational behavior takes on many different forms during a sales negotiations. The first is that you start to reject what the other side of the table says without having a good reason. Another sign that you may be an irrational negotiator is if you start to express a lot of emotions during the negotiations.

Irrationality can take on many different forms. The other side may present you with very rational arguments, but you don’t have to agree with them. You have a number of different choices: you can be partly logical, illogical, even go all the way and be illogical.

How Powerful Is Irrationality?

I can almost hear you saying “Why should I be irrational during a sales negotiation?” In fact, if I want to engage in principled negotiation should I even consider using irrational negotiations? When we look at the negotiation definition that we all use, we realize that the best way to look at irrationality is that it is just another tool that needs to be in everone’s negotiator’s toolkit.

The other side of the table will be spending the entire time that you are negotiating trying to read your mind. Trying to figure out what your next step is going to be. When you start to work some irrationality into your negotiation process, you will confuse them.

This is a powerful negotiating technique; however, you may struggle to pull it off. It really comes down to what your natural negotiating style is. If you are a highly logical person who rarely shows any emotion during a negotiation, then you may struggle to start to incorporate irrational behavior into your negotiations.

What Does All Of This Mean For You?

In the classic sci-fi TV show “Star Trek”, the bad guys have a cloaking device that allows their spacecraft to disappear. As a sales negotiator it turns out that you have your own form of a cloaking device: the power of behaving irrationally.

The other side of the table will always be trying to read your mind and pre-anticipate what your next move is going to be. Using your ability to be illogical can throw off the other side. Being illogical means that at times you become unreasonable, you start to show a great deal of emotion or you simply don’t agree with what they have presented, no matter how clear and logical it is.

In order to have successful negotiations, you need to be able to take on multiple identities during a negotiation. Becoming an illogical negotiator is one such identity and the sooner you learn to use your illogical powers, the sooner you’ll be on your way to closing more deals successfully.

- Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World Negotiating Skills™

Question For You: What time in a sales negotiation do you think would be the best to start to introduce more of your emotions?

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P.S.: Free subscriptions to The Accidental Negotiator Newsletter are now available. Learn what you need to know to do the job. Subscribe now: Click Here!

What We’ll Be Talking About Next Time

So it turns out that one of the key personality characteristics that may have gotten you this far in your career may actually be hindering your ability to negotiate. Yep, in the world of negotiating, there’s no place for a nice guy.

Sales Negotiators Know That They Don’t Have To be A Know-It-All

Friday, September 23rd, 2011
Image Credit Don't Worry – Your Brain Is Big Enough

Don't Worry – Your Brain Is Big Enough

Can you remember back to when you were in school? At the end of the term in each class there would be a big test that would determine if you had learned what had been taught to you. You’d do all of your homework and then you’d take extra time to study for the test hoping that most of that information would stay in your head long enough for you to pass the test. Well good news, sales negotiations are not like school tests – you don’t have to know everything in order to do just fine.

Why We Think That We Need To Know Everything

When something is being negotiated, for some odd reason we place an extra burden on ourselves: we believe that we need to know everything that there is to know about this negotiation. What we forget is that a negotiation process is just that – a process. The other side isn’t really expecting us to know everything.

Problems can pop up if we start feeling obligated to provide an answer to every question that gets asked. In a principled negotiation you should feel comfortable not knowing everything.

In fact, if you ever get involved in a negotiation in which the person on the other side of the table always has an answer for every question that you ask, consider yourself lucky. What’s going to happen is that they are going to end up talking too much as they struggle to answer all of your questions and they will end up revealing too much.

What To Do When You Just Don’t Know The Answer

All of this, of course, leads to the big question. What should you do when you don’t know the answer to something that comes up during a sales negotiation? If someone asked you for a negotiation definition, I think that your answer would be to tell them that a negotiation is a process by which agreement is reached. Part of this process is the asking and answering of questions.

When one of these questions is asked of you and you don’t know the answer, this is the time for you to be straightforward with the other side and simply say “I don’t know”. You’ll need to follow this up by saying “I’ll have to get back to you on that.” This type of response is expected and you won’t lose any face by using it.

Keep in mind that telling the other side that you don’t know the answer to a question that they have asked doesn’t necessarily mean that you don’t know the answer. It is perfectly permissible to not share an answer that you do know with the other side. Additionally, there will be times that you may want to share only part of the information that you know, or perhaps you’ll just want to put off sharing what you know until later in the sales negotiation process.

What All Of This Means For You

As sales negotiators we often like to think of ourselves as being all knowing. The reality is actually quite different – there is a lot out there that we just don’t know.

During a negotiation we need to have the confidence in ourselves to be able to speak up when we don’t know the answer to something. In fact, you might know the answer but that doesn’t mean that you have to answer a question. There is no shame in telling the other side that you are going to have to check on something or do some research before you’ll be able to answer their question.

Having the self-confidence to not have to have all of the answers is one of the great negotiating styles that is all too often overlooked. We all have different negotiation styles, but not pretending to have all of the answer is one style that we should all adopt.

- Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World Negotiating Skills™

Question For You: When you don’t know the answer to a question, what do you think that you should say to the other side?

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

P.S.: Free subscriptions to The Accidental Negotiator Newsletter are now available. Learn what you need to know to do the job. Subscribe now: Click Here!

What We’ll Be Talking About Next Time

How do you view yourself when you are conducting a negotiation? Do you see yourself as poised, confident, and above all rational? I think that most of us see ourselves this way. However, it turns out that we might be missing something here – there is a real power in being irrational sometimes…

Why Good Sales Negotiators Say The Same Thing Over And Over Again

Friday, September 2nd, 2011
Image Credit Sometimes You Want To Be A Broken Record During A Sales Negotiation

Sometimes You Want To Be A Broken Record During A Sales Negotiation

I love to negotiate. Give me an objective, sit me down across the table from somebody who has what I want and let me at them. However, as gung-ho as I am, there are times that I run out of new things to say. I’ve said it all. What should I do next?

Say It Again Sam

When you enter into a sales negotiation, you (should) have a very clear set of objectives that you want to accomplish. Every negotiation is different and so it can take a number of different paths.

You’ll generally have a chance to state your case. It’s what happens after that which can make life interesting. Specifically, if the other side doesn’t really respond – if they are not angrily attempting to counter your every demand, you may find yourself in an awkward situation.

The other side has not agreed to your requests, but they haven’t not agreed to them either. What’s a negotiator to do?

It turns out that the answer is rather simple – just start repeating yourself. That’s right: say what you’ve already said once again. If when you’re done, things are still getting quiet, then start it all over again and tell ‘em what you’ve already told them.

Why Repeating Yourself Is So Effective

All of this might strike you as a bit wacky. I mean, if you’ve told the other side what you want and why you want it, what need could there possibly be for you to start to repeat yourself?

This might surprise you a bit, but there is a very good chance that the other side of the table may not have heard what you said the first time that you said it. There are all types of studies out there that show that people will do a better job of picking up on what you are saying if you repeat it (over and over again).

Professional speakers discovered this a long time ago and during their speeches they’ll touch on the same points multiple times. As negotiators, we need to have the courage to do the same

We need to realize that if the opportunity presents itself, then we need to seize it. Repeating ourselves may be the one thing that it takes to reach a deal in our next negotiation.

What All Of This Means For You

Even the best of us can run out of things to say during a sales negotiation before we’ve reached a deal with the other side. We’ve said what we had to say and now we’re running on empty.

Never fear – a good sales negotiator knows that the sounds of silence need never drift across the negotiating table from your side. Instead, back things up and identify your key points again. Once you have them in hand, repeat what you said the first time – over and over again.

This odd but strangely powerful technique will allow you to fill the space in the negotiation and can work miracles – hearing your points again may cause the other side of the table to adopt them as your own. Realizing that not every word that tumbles out of your mouth has to be a novel thought is something that can empower every sales negotiator.

- Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World Negotiating Skills™

Question For You: Do you think that it is possible to repeat yourself too much during a sales negotiation?

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

P.S.: Free subscriptions to The Accidental Negotiator Newsletter are now available. Learn what you need to know to do the job. Subscribe now: Click Here!

What We’ll Be Talking About Next Time

Got a great email from reader Nadir Benouali the other evening. Nadir has a fantastic set of negotiating experiences and was willing to share them. Nadir is a US citizen of Algerian origin, and speaks Arabic, Spanish, and French. He has spent the last 20 years negotiating business around the world which provided exposure to all of the differences that the world has to offer.

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…!

Learn To Say “No” From A Russian

Friday, March 26th, 2010
Image Credit
Sometimes The Best Way To Get To “Yes” Is To Say “No

Sometimes The Best Way To Get To “Yes” Is To Say “No

So What’s So Hard About Saying “No”?

As I work with sales negotiators and teams of negotiators I am constantly surprised by just how hard it is for them to say one simple word: “No” . I’m not sure if it’s the way that we’ve been raised or if we all have some built-in need to make other people happy, but we sure seem to like the word “yes” more than we like the word “no”. Normally, this is no big deal – I mean who wouldn’t want to hang out with somebody who is always agreeable. However, this inability to say “no” can spell disaster when you are in a negotiation…

There Are A Lot Of Ways To Say No

The classic Russian sales negotiator is always shown as sitting on the other side of the table saying “no” (or “Nyet” if you prefer) over and over again. Why can’t we be more like them?

When you are in a sales negotiation, it’s sorta like you are dancing with the other side of the table. You go back and forth as you both try to drive the best deal for your side. However, there is one important difference between this interaction and dancing: you have a goal that you are trying to reach.

What the Russians know and we need to learn is that by saying “no” we can drive the other side closer to the goal that we want to achieve. If we don’t learn how to do this, we can get trapped in a sales negotiation that just keeps going on and on and on.

As with all things in life, saying “no” isn’t just as simple as saying the word and then being done with it. Instead (and as the Russians have shown us in countless international negotiations) there are a 1,000 different ways to say no and you really should learn them all.

The simplest way to say no is to simply say it. And then say it again. And again. And again. Often times the first few times that you say it, the other side of the table will ignore you – this isn’t what they want to hear. However, if you keep saying it over and over again, they will eventually get your point.

For variety, you can get up and storm out of a sales negotiating session. They do say that actions speak louder than words and by physically leaving you are very clearly saying “no”. When you return, that “no” is still on the table and the discussions can pick up from there.

Finally, silence is a very powerful way of saying “no” . Just by sitting there and not saying anything you send a very powerful message to the other side of the table and they’ll quickly get your point.

How To Say “No” And Leave The Other Side Happy

Clearly if you become known as the sales negotiator who always says “no”, you’re going to develop a reputation. You want to be careful and make sure that you use this powerful weapon to help reach a deal with the other side.

The power of the “no” comes from the simple fact that after you’ve been saying “no” for awhile, any time that you say “yes” to the smallest concession, the other side will experience a thrill that will make them happy. You can use this to your negotiating advantage.

What All Of This Means For You

All too often we try to hard to make others happy all the time. When we are involved in a sales negotiation, we need to turn this tendency off otherwise it may inhibit our ability to strike the best deal possible with the other side of the table.

The ability to say “no” is a powerful tool that we all have. There are many different ways to say “no” and as a sales negotiator you need to learn to use them all.

The real power of saying “no” is that when you finally get around to saying “yes” you’ll be that much closer to reaching your negotiating goal.

Question For You: Do you think that it is possible to say “no” too much during a negotiation?

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

What We’ll Be Talking About Next Time

How many times have you really wanted something only to discover that its price was too high? What did you do then – give up and go away? As sales negotiators we are taught that everything can be negotiated; however, in our personal lives (as well as our professional lives), if we see a price written down, we shrug our shoulders and say “well, that’s that” . Turns out that we’ve been getting it wrong all this time…