Managing director of Vincent Consulting
Sales negotiating affects all of us; whether we are a buyer or a seller. It happens when we buy our houses, cars or most things where the price is high or significant.
Sales negotiating is an important part of a sales process and often comes up at the end of the selling process. Negotiating is important and there are some first principles of sales negotiating that are true in theory and in practice.
Sales negotiating is an integral part of the sales process and builds on skills we, as consumers or as sales professionals, may already have. It also means that whenever we buy or sell, we must be prepared to negotiate.
We are negotiating when value differences are intense enough to threaten the progress of the sales process or the harmony of a relationship. The more there is at stake – the higher the risk of potential loss or gain, conflict and tension – the greater the need for a viable strategy to resolve value differences amicably.
Value differences may arise at any time during the sales process. This requires flexibility as well as preparation. Either party may initiate the need to negotiate. Nonetheless, it helps us to be able to lead our customers to win-win solutions through a productive negotiating process.
When negotiating one needs to consider: Who am I negotiating with – what is their role, are they the decision maker? What are the potential gains or losses that could arise from this negotiation? What do we agree on and/or where do we disagree?
What would be the optimal outcome?
Good negotiations depend on both parties being able to discuss the value differences that exist, acknowledging a desire to resolve and seeking win-win solutions.
Here are some tips for negotiating sales and purchases:
1. Plan your negotiating. Planning is the single most important aspect of successful negotiating.
2. Stick to the parameters of your plan. You can always revisit later if you need to.
3. Don’t forget the buyer and seller are both at the table because they have something to gain from the sales and negotiation.
4. The seller must know the value of what is being sold and the issues that can be negotiated.
5. Sellers should be prepared to communicate the tangible worth of the negotiable issues.