Posts Tagged ‘how to negotiate’

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C’est La Vie – French Lessons For Sales Negotiators

Tuesday, April 28th, 2009

Sales Negotiations With The French Requires Understanding Of Two Key Differences

Sales Negotiations With The French Requires Understanding Of Two Key Differences

So what is your view of the the French? Is your view of this magnificent county and its people shaped by those Inspector Clouseau movies that you used to watch while you were growing up? If it was, then it’s time to get over it and move on – they negotiate much differently than you do.

As with all things in sales negotiations, there is no right or wrong as long as you are able to eventually reach a successful conclusion to your sales negotiations. The trick when dealing with the French is to realize that they approach negotiations differently than either Americans or British do.

There are two key characteristics that every sales negotiator needs to know when dealing with French negotiators. The first is HOW they approach sales negotiations, and the second is HOW they view concessions.

In all honesty, we Americans always seem to be in a rush when we enter in to a negotiation – we work from the bottom up. We pick the first point, try to hammer out an agreement, and then move on to the next point. The French have a completely different approach – if I had to use a 50 cent word I’d call it a more “holistic” approach.

The French prefer to work on a sales negotiation from the top down. They’ll try to reach agreement on the basis of some broad principles first, and spend time working out the details. While they are working out the details, they will constantly refer back to the central agreement on the broad principles. Since you start from a point of agreement, it always seems like the rest of the work is just sorting out the details and that an agreement will eventually be reached.

When it comes to concessions, the French have a very strong sense of quid-pro-quo: they always want to get something in return. Unlike Americans, the French have no problems tying strings to their concessions – you are going to have to give something up if you want to get them to give in on a point.

There you have it, it is possible to reach a successful sales negotiation deal when the other side of the table is French. You just have to remember that their approach to the negotiation and to concessions will be different than yours and you are going to have to change to make the deal work out.

Have you ever had a chance to participate in a sales negotiation when the other side of the table was French? Did they seem to be approaching the negotiation in a top-down fashion? Did you end up giving up something every time they made a concession? Leave me a comment and let me know what you are thinking.

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Posted in how to negotiate | 2 Comments »

Japanese Sales Negotiation Secrets

Tuesday, April 21st, 2009

Sales Negotiations With Japanese Partners Require New Skills

Sales Negotiations With Japanese Partners Require New Skills

All too often Americans (like me) think that we know everything. The reality is that our society has only been around for a bit over 200 years and we’re just getting started. That’s why it can be valuable for a sales negotiator to take a look at how societies that have been around for 1,000′s of years negotiate. Like, say, Japan…

The U.S. really started to take a look at how we dealt Japan in the 1980′s when trade between our countries exploded. What people quickly realized is that both sides of the table were fundamentally different. There for the first decade or so, U.S. sales negotiators were getting taken to the bank more often than not because the Japanese sales negotiators were doing a better job.

Over time HOW these negotiations were being conducted was closely studied. Three techniques quickly became apparent:

  1. Considered Response / Respectful Silence: when Japanese sales negotiators are on the other side of the table, be prepared to sit quietly. Western sales negotiators don’t know what to do when nobody is talking – and the Japanese know this. They can sit, work out math problems, draw in long breaths, etc. and say nothing for minutes at a time. This is all designed to get you to become flustered and give in on a point or say something that you shouldn’t say.
  2. KAN – “Seeking Heavenly Approval”: Western sales negotiators like to focus on the here and now. Japanese sales negotiators realize that this deal is just part of a much bigger relationship. After the details of the agreement have been worked out and it appears as though you are close to closing the deal, members of the Japanese team will pause. They will consider if they really want to do this deal with you – is it going to be worth it in the long run, or are you just going to be too much of a hassle to deal with? This moment is called KAN – reaching “heavenly approval”.
  3. Time & Money: the Japanese view the sales negotiation process differently than their Western partners do. We in the west see it as something to race through and quickly get done with. The Japanese view it as something to be nurtured. They set aside enough time to do it properly. They resist attempts to wrap it up quickly. They will revisit points over and over again in order to test your resolve. This is how Japanese sales negotiators turn time into money.

It is entirely possible to enter into sales negotiations with Japanese partners on the other side of the table and come out with an agreement that you feel good about. However, you need to fully understand how they see the world and adjust your sales negotiating style to this situation.

Have you ever had a chance to negotiate with a Japanese team? Were there long, uncomfortable periods of silence? Did they seem to slow things down and do more thinking as the end of the negotiations approached? Did you remember to budget enough time for the negotiation or did they budget more time than you had? Leave me a comment and let me know what you are thinking.

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Posted in how to negotiate | 3 Comments »

Even More Giving: 5 More Ways Sales Negotiators Can Use Concessions

Tuesday, March 31st, 2009
Sales Negotiators Know How To Use Concessions

Sales Negotiators Know How To Use Concessions

You can never say it too many times: in order to reach an agreement with the other side during a sales negotiation, you ALWAYS have to make some sort of concession(s). The trick to doing this correctly is to make sure that you don’t make so many concessions that when a deal is struck that you’re left feeling that you didn’t get a good deal.

Once upon a time I was in the process of moving to start a new job and had to sell my house. I had found an interested buyer and we were in the processing of negotiating a selling price. We had gotten pretty close to an agreement, but we were not quite there.

I knew that all of the appliances in the house were pretty much on their last legs, and I was concerned that the buyer was going to ask me to replace them as a part of the deal. I has already moved so that would have been a big inconvenience to contract out the work, oversee it, and pay for it. However, the buyer only came back and asked me to replace the hot water heaters. I negotiated just paying him cash to have him take care of it and then we were able to strike a deal.

[Editors Note: I later found out that he pocketed the cash that I gave him, didn't fix the hot water heaters which were in the attic, and shortly thereafter they failed and flooded the house. Ouch - there's a lesson in there somewhere]

Here are few additional guidelines on how to make concessions work for you during your next sales negotiation:

  1. Try to not negotiate using so-called “funny money” – taxes, credit cards, monthly payments, and interest rates. Stick to the real stuff that everyone understands.
  2. Understand and use the power of the word “no”. All too many sales negotiators are afraid to use this word. If you use it over and over again, eventually the other side will come to believe that you really mean it. Persistence pays!
  3. In the heat of a sales negotiation, it can be easy to lose track of what really matters to you. Make sure that you keep a list of what’s important to you (and what’s important to the other side) and look at it often.
  4. If you make a concession that you later on decide was a bad idea, have the courage to step back from that concession. Remember that until the sale is signed for, everything can be re-negotiated. Not stepping back from a previous concession because of pride is one of the biggest mistakes that you can make.
  5. Throttle the other side’s expectations. You are in charge of how many concessions you make and how fast you make them. If you give too much away too soon, then the other side will start to expect even more.

When you negotiate, which of these suggestions do you think is the most important? Did I leave anything off of my list? Should anything be removed from the list? Leave me a comment and let me know what you are thinking.

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Giving To Get: How A Sales Negotiator Makes Concessions

Tuesday, March 24th, 2009
Concessions Are A Powerful Negotiation Tool - Learn To Use Them Correctly!

Concessions Are A Powerful Negotiation Tool - Learn To Use Them Correctly!

Sales negotiating is all about concessions. You make them, the other side makes them. Finally, if enough has been given, then you should be able to reach a common middle ground where a deal can be struck.

The trick is knowing how and when you should make your concessions. Here are some tips from the pros to make sure that you do it correctly:

  1. Plenty of Room: Make sure that you always give yourself plenty of room to negotiate. Simple things like starting with a high price or a lengthy delivery cycle will buy you the room to make concessions during the negotiations.
  2. Hide Your Cards: You always want to work to make the other side of the table open up and put all of his cards on the table long before you have to do the same. You should keep your motivations and goals hidden from view in order to maintain your negotiating power.
  3. Be Second: Never make a major concession first. Once again this is a power thing. Instead, make minor concessions until the cows come home.
  4. Make ‘Em Earn It: Never make a concession without making the other side earn it first. If they don’t earn it, then they won’t appreciate the concession when you give it to them.
  5. Wait: Make sure that you hold on to your concessions for as long as you can. Giving in later in the negotiation is always better than earlier – and the other side will appreciate it more (see #4).
  6. No Tit-For-Tat: it turns out that tit-for-tat or one-for-one concessions are not necessary. It’s ok if the other side gives more than you do.
  7. Gimme: Make sure that you get something for every concession that you make.
  8. Empty Boxes: Give concessions that really give nothing away from your point of view.
  9. Words: Getting the other side to say “I’ll consider it” is one form of a concession.
  10. Promises: Just like in #9, getting the other side to make a promise is yet another form of having them make a concession.

When you negotiate, which of these suggestions do you think is the most important? Did I leave anything off of my list? Should anything be removed from the list? Leave me a comment and let me know what you are thinking.

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A Sales Negotiator’s Friend: “Just The Facts, M’am”

Tuesday, March 17th, 2009
Sales Negotiators Should Not Be Afraid Of Facts & Stats - They Are Just Here To Help!

Sales Negotiators Should Not Be Afraid Of Facts & Stats - They Are Just Here To Help!

So there you are, getting ready to fire up your side of a sales deal when all of a sudden you get hit with a volley of facts, averages, and statistics. You’re hit! Each one of those figures came with a sharp point that has embedded itself, perhaps fatally, into your arguments. Is there any way that you can survive?

Good news, the answer is yes. It turns out that these powerful negotiating weapons: facts, averages, and statistics are ALWAYS negotiable. We have trial lawyers to thank for showing us the way. The key here is not to argue with the numbers themselves, but rather dispute what lies behind the numbers.

Questions that a good salesperson will ask right off the bat after being attacked with numbers include:

  1. Who collected these numbers?
  2. What sources did they use to get the numbers?
  3. What techniques did they use to collect the numbers?
  4. Were there any assumptions used when collecting the numbers?
  5. Why were the numbers collected in the first place?
  6. What values were hidden behind the numbers?
  7. Were there any biases that might have influenced the collection?

A key point to always remember is that any facts, statistics, or averages are always based on things that have happened in the past. What you are in the process of trying to do is to negotiate a deal that will live in the future.

One final point is to not allow yourself to get too worried by statistics or averages. They are just ways of trying to be able to talk about large amounts of data. The most important thing to remember here is that by their very definition, statistics and averages really don’t apply to anyone including you.

Have you ever been trying to work a deal when the other side suddenly whipped out a bunch of numbers? What was your reaction? What did you do next? Did the numbers end up influencing how the deal came out? Leave me a comment and let me know what you are thinking.

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Posted in information gathering | 4 Comments »

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