Posts Tagged ‘legitimacy’

Why The Standard Answer Can Help A Negotiator Close The Deal

Friday, December 2nd, 2011
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Standards Can Be A Negotiator's Best Friend

Standards Can Be A Negotiator's Best Friend

Magical mind control powers. That’s what every sales negotiator would like to have. The ability to bend the other side of the table’s mind to your way of thinking would be the set of negotiation styles or negotiating techniques that would make life so much easier. Sadly, I don’t believe that such powers exist. However, there is something that comes pretty close – standards.

What Standards Are And Where You Can Find Them

So right off the bat I guess we should tackle the big question: just what the heck is a “standard”? Standards are documented ways of going about doing something that were created by someone else. Note that I didn’t say that a standard is recognized as an official source by anyone in particular nor did I say that it was created by a person who is well regarded in a particular field. Don’t worry, using standards is still a part of conducting a principled negotiation!

A standard is simply that: documentation about something. The important thing from your point of view is that during a negotiation when you introduce a standard into the discussion that both sides start to treat the standard as the ultimate source of information. Using standards should almost be considered part of the negotiation definition.

If you are preparing for a negotiation and you find that there is no existing standard that will support your position, then it may be time for you to create your own standard. Even if you don’t create the standard, you can at least have someone within your company create it for you. Remember that who creates a standard doesn’t really matter, it’s just the simple fact that the standard exists that gives it its power.

How To Use Standards To Get Your Way In A Negotiation

Once you have the standards that you’re going to need in order to conduct a successful negotiation, you need to understand how to use them as part of the negotiation process. The real power from a standard comes from the fact that it now equips you with legitimacy.

During the negotiations you can refer to the standards and say things like “I’ve got to stay within these standards, that’s what my management has told me to do.” The other side of the table might not like this, but what can they do?

Just by having a standard, you can make it easier for the other side to agree to go along with the proposals that you are making. The standards provide you with an air of legitimacy and they help to guide the other side to reaching the decision that you really want them to make.

What All Of This Means For You

As a negotiator you are always looking for new ways to gain legitimacy in the eyes of the other side of the table. You really want to find ways to make your way of seeing the world their way too so that a negotiated deal is that much easier to reach.

Standards that you bring to the table can provide you with the support that you are looking for. These standards don’t have to be fancy internationally recognized standards. Standards that have been developed by your company (perhaps just for this negotiation!) often have as much weight. Simply by having a standard, you can reduce the amount of push-back that the other side will give to your proposals.

Take the time to plan your next negotiation. Look for ways to boost your position by the introduction of one or more standards. When the time is right, bring them to the table and defer to them. You may be amazed at just how powerful the right standard at the right time can be!

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

Question For You: What do you have to do to make an internal standard be accepted as legitimate by the other side?

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What We’ll Be Talking About Next Time

Stand Your Ground: Two Ways To Not Fold During A Sales Negotiation

Friday, April 30th, 2010
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In Order To Defend Your Side Of A Negotiation, Always Have An Exit

In Order To Defend Your Side Of A Negotiation, Always Have An Exit

So there you are: the classic sales negotiator in the headlights. You’ve got a firm fixed price that you’ve been told to not budge on and yet you know that you’re getting ready to start a negotiation during which the other side is going to be hammering you to lower your price. Sure doesn’t make you want to get up early in the morning, does it?

Rule #1: Slow Down

When I’m working with clients who have a technical background, the question of how fast to move during a negotiation often comes up. Specifically, if you think that the price that you are asking for is going to be a big bone of contention, then should you just cut to the chase and start talking about price right off the bat?

Interestingly enough, and somewhat counter intuitively, the answer is no. If you jump to talking about the issue that you think is the most important, then you’ve lost an important opportunity to find out what the other side of the table thinks is the most important issue – and it may not be the same thing that you are worried about.

Taking your time also gives you a chance to gauge the other side of the table’s interest in the overall negotiation. If they need to get this deal done and move on to other things, then there may really be no sticking points at all if you don’t bring them up.

Finally, by taking time to get around to a major issue in the negotiations you are sending a signal to the other side of the table. Specifically, you are telling them that you are not all that anxious about this negotiation and that you won’t be caving in to their demands.

Rule #2: It’s All About Your Exit Plan

If you are going to look the other side of the table in the eye and tell them that your price is the best price that they are going to get from you, then you’d better be ready to back that statement up. This means that you’re going to have to have done your homework if you want to have an exit plan that will allow you to avoid having the negotiations end in a wreck.

Why are you charging the price that you are charging? Is your price as good as anyone else’s? Prove it. Is it based on what you charged this customer last time they bought from you? Prove it.

Your goal here is to boost the credibility of your price in the eyes of the other side of the negotiating table. The more that you’re able to do this, the better the odds are that you’ll eventually be able to get them to agree to doing a deal with you.

There is one additional side benefit to doing your homework and providing a solid backing for the price that you are asking. If in the end you find yourself having to make some sort of concession, no matter how small, on your price, then having presented a solid case for the price will end the discussion. The evidence that you provided should stop the other side from asking for even more concessions.

What All Of This Means For You

Starting a negotiation when you know that you you’ve got to defend a price that will be coming under heavy assault from the other side of the table is never fun. However, it is possible to be successful if you’ve done your homework before the negotiations begin.

Speed kills in a negotiation. Don’t dive in and start talking about the most challenging part of the negotiation right off the bat. Instead let the other side drive the discussion and find out what’s important to them. Also always have the facts to back up your price – it will make your job that much easier.

It is possible to come out of a negotiation with your price intact. All it takes is the good sense to take it slow and to come prepared to explain why your price is one that the other side is going to be willing to live with.

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

Question For You: Do you think that you should ever bring up a negation point, or should you always leave this to the other side to do?

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What We’ll Be Talking About Next Time

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…