Dealing with Negotiation in Sales...Principled negotiation is an approach to conflict resolution...

Dealing with Negotiation in Sales

Jump start pack workshop – 4

Jumpstart workshops series

• Sales Prospecting and Sales Pipeline Management

• Sales Presentations

• Sales Objections & Deal Closure

• Sales Negotiations and Follow-up

• Value Propositions and Exec Summary

• Capture Planning

• Bid Governance & Review Management

• Team Capability Assessment

• Digital Marketing Fundamentals

• Marketing Gameplan

• LinkedIn Conversations Brand Building

2

Register your place HERE:

https://baachuscribble.com/live-workshops/


The Sales Process

3

The sales process outlines the steps to find potential customers, close the sale, and retain clients for repeat business and referrals in the future. The sales process includes the following stages:

.

Prospecting Preparation Approach PresentationHandling

ObjectionsClosing Follow Up

What is Negotiation in the Sales Process?

4

The Selling process identifies the fit between the seller’s offering and what the buyer is seeking.

Negotiation, on the other hand, is a part of the selling continuum, involving the process of agreeing the terms of the deal.

Every moment of business development and selling involves some amount of negotiating.

Why is Effective Negotiation Important?

5

Don’t underestimate the importance of good negotiation skills. Effective Good negotiation can help you with:

Improving profitability

Competing on value rather than price

Enhancing customer perception

Why is Effective Negotiation Important?

6

When you undertake effective negotiations, you are able to:

Increase the deal size

Reduce discounting

Improving win:loss ratios

Realize greater value (proposed vs. closed)

Key Negotiation Styles

7

Key Negotiation Styles

8

Soft NegotiatorMakes concessions readily in order to reach agreement; looks to avoid personal conflict; wishes for an amicable resolution; may end up exploited and feeling bitter

Principled NegotiatorCreates a win-win deal

Hard NegotiatorFocused on winning; sees negotiation as a contest of wills; may get an equally hard response which harms his relationship with the other side, and exhausts him and his resources

NEGOTIATION STYLES

Key Negotiation Styles – Hard Negotiation

9

HardNegotiator

Distrust Others

Seek concession as a condition for the relationship

View participants as adversaries

Hard on the problem and the people

Make Threats

The goal is victory

Mislead about the bottom line Demand one-sided gains in order to agree

Try to win a contest of will Apply pressure

Key Negotiation Styles – Soft Negotiation

10

SoftNegotiator

Change position easily

Agreement is the goal

View participants as friends

Trust others; soft on the people and the problem

Make offers

Make concessions to foster relationships

Disclose the bottom line Insist on agreement

Avoid a contest of will Yield to pressure

Key Negotiation Styles – Principled Negotiation

Principled negotiation is an approach to conflict resolution outlined in the book, "Getting to Yes" by Roger Fisher and William Ury, published in 1981

Principled negotiation, is often referred to as creating a "win-win" deal. It takes the all-or-nothing attitude out of the equation, helping you achieve your business objectives and satisfy

the other party’s expectations.

11

Principled Negotiation – Fundamental Principles

12

Separate People from the Problem

Generate Multiple Options

Focus on Interests

Use Objective Criteria

Fundamental Principles

Principled Negotiation – Fundamental Principles - 1

Separate People from the Problem

The issue being negotiated often gets overshadowed by emotion, communication and

perception. Make sure you separate the people from the issue/problem at hand.

While engaging in negotiations, try to put yourself in the other person’s shoes and empathize

with them. Think of each other as partners not adversaries

13


Focus on Interests

Don’t look at the other person’s view on the subject/issue as inferior, instead, aim to have

discussions about common interests.

Identify the interests of each party regarding the issue – asking them why they have a

particular stance.

Number of interests underlie each party’s position - discuss these interests and stay focused

on a solution.

14


Generate Multiple Options

Focus on generating lots of options for a possible solution - brainstorming can be an effective

exercise here

When brainstorming, remember to not judge the ideas.

Shortlist the most promising ideas during the evaluation phase.

15


Use Objective Criteria

If encountering strong, direct opposition, use objective criteria such as industry statistics, legal

precedent, and scientific studies.

If both sides agree to the validity of the information and view it as a standard they can agree

to, it is objective.

16

Principled Negotiation – Handling Obstacles

Deals cold be ruined by use of dirty tricks, power and refusal to use principled negotiation.

Use the four principles of principled negotiation to establish ground rules for the negotiations

When power is an issue, the weaker party should look for a best alternative to a negotiated

agreement (BATNA). BATNA acts as an alternative to bottom-line thinking in which parties

evaluate the worst possible outcome before negotiations start. Decline solutions that would

be worse than BATNA.

When the other party doesn’t use principled negotiating, avoid responding to attacks, direct

them at the problem. Just keep at it.

17

Essentials of Effective Negotiation

18

Essentials of Effective Negotiation

19

ESSENTIALS OF

EFFECTIVE

NEGOTIATION

Use silence to your advantage

Define your absolute bottom line -

define the concessions you are

willing to accept

Don’t put anything in writing till

the conversation is over

Build value in your prospect’s mind to

justify your price

Always negotiate with the decision

maker

Prepare well before negotiations

Know when to walk away

Offer alternatives to cash

discounts that cost you less

How to Handle Adversarial Tactics?

20

What are Adversarial Tactics?

Adversarial negotiation tactics work through manipulation. Sometimes, buyers

may adopt use a range of pressure tactics to defeat you and get what they

want.

They are looking to fluster you, hoping you’d make a mistake and eventually

feel pressured into making a concession.

21

How to Deal with Adversarial tactics?

Avoid reacting in a way that would escalate the situation. Steer the negotiation

on a more productive path that fosters the relationship.

22

Handling Common Adversarial Tactics - 1

False Deadlines

Pressuring you to agree to terms before you are ready.

Approach

Make sure the sales process is not rushed through. If you give in to fast-forwarding through

demonstrations and presentations, you could later on be called out for covering up important

details. Be prepared, and ask necessary questions to check the reality of the deadlines.

23


Delaying a decision and ignoring deadlines

This might be aimed at creating anxiety and pressure you to make concessions.

Approach

Find out the actual reason of the delay - follow up and politely communicate that your time is

also important.

Don’t feel pressured to make concessions due to the prospects inaction or lack of movement.

Save yourself by documenting all communications, ensuring deadlines and key action points

from voice mails/emails are noted, along with the consequences of any delays.

24


Starting over in the middle of negotiations

Prospects may reverse progress in order to keep and gain position

Approach

In case of any one term being changed, feel free to reopen all the terms - in the interest of a

fair outcome. Both the seller and buyer should feel like winners at the end.

25


Surprises

Prospect brings up new issues when you think things are settled

Approach

The prospect may have forgotten to bring something up sooner, however, it could be a sign of

prospective problems.

Refrain from immediately handling the issue - ask for more time, park it until you are

prepared.

Keep in mind: “Never let them see you sweat.” Change the direction of the discussion to delay

your reaction or response.

26


Demanding price up front

Prospects may ask you for ballpark price quotes and then hold you to the lower figure.

Approach

Acknowledge his question and state that you want to share the pricing information, but ask

for more information to help you give specific, accurate pricing.

Give information to get information.

You might provide possibilities of high-, medium-, and lower-priced options before you know

what’s to be included in the sale and committing to a price.

27


Negotiating the future

Prospects use a possible future deal to bargain for the current deal

Approach

Ask the client for specifics in written, effectively making the future deal a formal part of the

current deal. How you handle this deal, will set parameters for the next one.

Conceding on the current deal could yield a larger opportunity in the future, but, consult your

seniors and other stakeholders before committing.

28


Creating an uncomfortable environment

Prospects may try to gain an unfair advantage by ways such as long waiting hours, hot and

uncomfortable room, sunlight in your eyes, no food or break, and changes in negotiators.

Approach

If you can gauge that this is done intentionally, consult with your team/colleagues to validate

that it’s not just you who feels this way.

Straight away ask to change the environment (change seating, adjust the temperature, shift

rooms, etc.)

Don’t fear calling for a break or rescheduling the meeting.29


Suddenly losing interest

Prospects may indicate you are likely to lose the deal, with the aim to gain better terms.

Approach

Do not panic.

Be aware that it could be a tactic, so ask the prospect what changed.

Be patient. Do not nag the prospect, but stay in regular touch, and document your

communications, discussions, key decisions and milestones, and consequences for the sale if

delays persist.

30


Outnumbering you

Prospects may attempt intimidation through a large delegation of buyers in the meeting

without informing you in advance.

Approach

Ask for details of attendees’ roles, ahead of the sales meeting - if the deal is likely to affect

multiple functions, it is sensible for the buyer to include his colleagues in the sales meetings.

If the sale is large/complex, expand your BD/sales team accordingly — match numbers with

numbers.

However, if you do end up in a situation where you feel you are being bullied during the

meeting, stand your ground, and try to schedule a follow-up meeting31


Playing dumb

Prospect may try to get you to back down by faking a lack of understanding, awareness,

assumptions, or expectations.

Approach

Do not let the prospect’s “not knowing” to impact your terms.

Don’t amend the deal or make sacrifices due to your client’s lack of attention or attention.

However, since you’re the expert, it is mandatory for you to clearly spell out each step along

with information on pricing, timing, delivery, etc., to avoid any ambiguity or

misunderstanding.32


Using silence

Prospects may use silence to pressures you to concede — the first one to talk after the

price/condition is on the table is usually the first to fold.

Approach

Keep quiet!

Stay silent after you’ve stated your price. Do not offer explanations, or stammer – you may

only giving them material that can be used against you.

Silence is also a weapon you can use.

33


The “Broken Record

Prospects may sometimes bombard you with concerns, demands, budgets, limitations, or

expectations.

Approach

Follow the client and be a “broken record” yourself - ask lots of questions until you receive

satisfactory answers.

Acknowledge their concerns but call them out for not answering to your satisfaction. E.g.

“Your concern about ABC is valid, but you still haven’t answered my question. I’m here to help

you, but it seems you either don’t know the answer or don’t want to tell me. Let’s try to

resolve this so we can move on.”34


Using the “Nibble”

Prospects may try to get last-minute concessions.

Approach

Do not drop your guard towards the end of the negotiation when you almost have a deal.

Don’t let that the joy of thinking that the deal is done make you agree to a concession – even

if it seems very small.

Keep this question in mind: “What impact will this have on my profitability and future deals?”

35

Conclusion

Negotiation is Unavoidable

Most issues faced during the negotiation process can be handled through clear

communication

Adopt ‘Principled Negotiation’ for mutually beneficial negotiations

View the interaction as a long-term relationship, and not a one-time transaction

Decline anything that is best alternative to a negotiated agreement (BATNA)

Know when to walk away – unreasonable/unprofitable demands and intentional adversarial

tactics

36

Sales Follow-Up

Jump start pack – 4

Why is sales follow up important?

38

Industry statistics suggest that only 2% (or 1 in 50) deals are struck in the first meeting

Prospects need time to develop a certain level of trust and be convinced that you meet their requirements

A strategic and optimized sales follow-up process is important to get the outcomes you want when pursuing a prospect

When to follow up and how?

39

After the Initial

Contact

After Formally

Making the Pitch

After Closing the

Sale

Follow - Up

When to follow up?

When to follow up and how?

40

After the Initial Contact

▪ Industry experts say, 80% of sales happen after at least five follow-ups; after initial contact, send follow-up emails/or make calls at strategic times

▪ Anticipate and be prepared to handle the typical objections your prospect may have, to move forward in the process

After Formally Making the Pitch

▪ Appreciate the lead, recognize and restate their pain points, answer any questions that surfaced during the meeting and end your follow-up with a call-to-action

After Closing the Sale

▪ Follow up to build and maintain long term relationships▪ Use this approach: keep a schedule of when to follow up, choose an appropriate method (decide

between face to face, phone or email), reiterate your appreciation and actively ask about any concerns the customer has.

How to follow up?

How often to follow up?

41

Ideally, keep following up as many times as necessary until you get a response

If you are reaching out completely cold, i.e. have never had any interaction with the other person, follow up a maximum of six times

If you’ve already had some kind of interaction with the lead but the interaction was not a clear, definite NO, then follow up as long as it takes to get a response

If during the process, someone says they are not interested, leave them alone

Sales follow up: tips

42

Schedule and Automate Follow-Ups: Schedule your messages - use CRM or email productivity tools to compose and schedule emails to send at a later date

Keep emails Crisp and Short: Brief, to the point emails are more likely to get you a response

Back up your Claims: Back up your statements with a convincing metric, result or customer testimonial

Don’t Automate Email Content: Refer to templates but don’t blindly follow them, or all your emails will look the same and will lack customization – customers can often tell a “templatized” email.

Avoid Bland Statements: Be direct, referencing to the lead’s pain point and the solution you offer

Stay Human: Treat the lead with the same understanding and respect as you have for friends, colleagues and acquaintances

Jumpstart workshops series

• Sales Prospecting and Sales Pipeline Management

• Sales Presentations

• Sales Objections & Deal Closure

• Sales Negotiations and Follow-up

• Value Propositions and Exec Summary

• Capture Planning

• Bid Governance & Review Management

• Team Capability Assessment

• Digital Marketing Fundamentals

• Marketing Gameplan

• LinkedIn Conversations Brand Building

43

Register your place HERE:



MasterClass Series

• Sales Foundations Master Class

• Capture Master Class

• Mobilisation Master Class

• Sales Pipeline and Pre-Sales Master Class

• Marketing Foundations Master Class

• Rebid Master Class

• Account Management Master Class

• Bid Methodology Master Class

• Bid Team Leadership Master Class

• Storyboarding Master Class – NEW

• Commercial and Contracts Master Class -NEW

• Pricing Master Class- NEW

44

Access all 9 + NEW 3 Masterclass for only £99 + VAT

https://learn.baachuscribble.com/product/masterclass

-bundle/

Master Class is an immersive online LIVE experience.

Each masterclass is 2.5 hours long and includes a class

workbook, interactive assignments, and community

activities.

https://learn.baachuscribble.com/product/masterclass-bundle/

Self Care Programme

45

Choose your Wave and Register


Learn more about the programme:

https://baachuscribble.com/self-care-programme/

The Challenge in a Crisis

Our creative brain shuts down in a crisis. Fear and worry is paralysing. Being isolated makes it worse. When you feel supported and have clear strategies, you can move forward boldly.

We’ll get through it together in the Self Care Programme community.

We’re here for you. Let’s do this!


https://baachuscribble.com/self-care-programme/

46

Copyright © 2020 by Baachu, Baskar SundaramAll rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or

other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of certain other noncommercial uses permitted by copyright law. For permission requests, write to the publisher, addressed “Attention: Legal,” at the address below.

Baachu Sussex Innovation, No.1 Croydon, 12-16 Addiscombe Rd, Croydon CR0 0XT

www.baachuscribble.com

DisclaimerWhile an effort is made to use the most accurate available information, Baachu does not guarantee that the information shared is always current. Baachu does not warrant or make any representations as to the content, accuracy or completeness of the information, text, graphics, links and other items contained on its

printed material and web pages.

Dealing with Negotiation in Sales...Principled negotiation is an approach to conflict resolution...

Documents

Transcript of Dealing with Negotiation in Sales...Principled negotiation is an approach to conflict resolution...