sales training consultants


Sales Training Consultants

Performance Through People

Instant Sales Guides

The Negotiation Checklist

Understanding the Customer

  • What is the business issue they want to solve? (What's their ROI?)
  • Who is involved, who are the buying influences and how do they view us? (Executive Sponsor, User, Technical, Coach, Third Parties)
  • Who are we actually negotiating with, what do we know about them?
  • What are the key negotiation points for the buyer?
  • Do we know the competition and their proposed solutions?
  • Have we a record of discussions and objections raised to date? What does this say about the customer's "hot buttons" and concerns?
  • What tactics do you expect the customer to use during the negotiation?

Our Solution

  • Do we have a clear statement of how we solve their business issue?
  • Does the customer understand and agree with this? (Have we asked them?)
  • Can we articulate our value and differentiators over the competition?
  • Do we have the proof (to reduce risk) to show that we can do this?
  • Have we defined our Optimum and Fallback positions?
  • Besides price, what can we negotiate on? (maintenance, training, payment terms, delivery, installation, support, volume discounts, account status, etc.)

The Negotiation

  • Have we had an opportunity to fully present our value proposition?
  • What do the BATNAs mean to out negotiation strategy?
  • Do we understand where the power and leverage is for each side? (Timing, information, power base, location, EQ, history, titles)
  • Have we developed our questioning strategy?
  • Have we got a clear opening statement? (How does our solution fully meet their business needs and ROI)
  • What do we do if we cannot reach an agreement?

Your Attitude

  • Do not assume you have to negotiate
  • Don't negotiate until the customer acknowledges that their needs can be met by our solution
  • Prepare thoroughly, they will!
  • Demonstrate a Win-Win attitude
  • Be confident in the value your product or service will return
  • Listen - Don't rush to fill pauses - be comfortable with moments of silence
  • Work on exchanging, not giving
  • Work on all the possible variables
  • Be prepared to walk away at this time

Download a printable pdf version of the checklist - The Negotiation Checklist

The 4 Stages of Negotiation

When thinking about what to do, it is often useful to have a mental model to help us structure our thinking and give us a process to follow. These models are particularly helpful when we are under pressure (as in a negotiation) as they give us a framework to work within. Here is a 4-step model that can be used for negotiation:

Note that if buyers are asked what they would spend more time on, they always answer preparing. They except to spend 3 times as long on preparation as the rest of the steps put together. They will know all about the market, pricing, competition options, when your month/quarter end is, what discounts they have received from you in the past and how you support them.

Now, as a sales person, how much preparation do you do? Well, it my experience very little - which immediately gives the customer a huge advantage. So, if there is one idea that you take from this section it should be that you must prepare as well as the buyer.

Looking at the 4 steps you could categorise them as:

  • Prepare - what do we want?
  • Discuss - what do they want?
  • Propose - what wants might we trade?
  • Bargain - what wants will we trade?

And guess what, if you have only got price that's what you trade! Knowing the value of your solution to the customer gives you a far better poker hand to play.

Can we assist with your training requirements? Just email us now with your details and we'll get back to you.


Bookmark The Site.

    Sales Blog Home     Sample courses     Sales skills     Management skills     Personal effectiveness     Consultancy     Training needs analysis     Sales force assessment     Competency based training     Training design     Sales training     The need for training     For company executives     For customers     For sales people     For sales managers     Types of training     Core sales skills     Business acumen     Individual Effectiveness     Sales induction     Delivery options     elearning     Face to face     Seminars     Power hours     DVD/CD     On the job     Measuring success     Level 1 - reaction     Level 2 - learning     Level 3 - behaviour     Level 4 - results     Common mistakes     No clear objectives     Its not sales training     What changes     No executive sponsorship     An isolated course     No sales engagement     The way forward     Tailoring for your needs     elearning for the basics     Face to face for momentum     Power training to re-enforce     Management training     Leadership     Driving the team     Coaching for results     General management     Case studies     Moving from product to services sales     Virtual team leadership     Selling managed services     Developing sales people new to IT     Delivering key executive messages     Changing management behaviour     Resources     Friends pages     Training quotes     Training feedback     Sales training books     Sales books     Leadership books     Management books     Self Help books     Sitemap     Contact

2007 Copyright ©