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COMPANY CONFIDENTIAL

Negotiating Tips for Executives: “What You Need to Know to Negotiate Better Deals”

by

Jim Geisman

Monthly Webinar Series - April 2012

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Sponsored by LeveragePoint the Software Solution for Value-based Pricing

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Today’s Presenters

Jay Manson is Vice President of Sales at LeveragePoint.

He joined LeveragePoint in June 2010 and is responsible for bringing LeveragePoint to market. He brings over 15 years in business development, sales and sales management experience, and has spent the past 10 years in the value-based marketing, pricing and sales industry. Formerly, Director of Business Development in Monitor’s Strategic Pricing Group and as Managing Director for Benchmark Partners.

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Today’s Presenters

Jim Geisman is President of Software Pricing Partners, Inc

and is a recognized expert in software pricing and negotiating software transactions. Jim's pricing experience started in 1988.

Jim was a member of the original ARPANET team and was honored as an Internet Founder by the Massachusetts Software Council. He is on the Board of Advisors to the Professional Pricing Society. Jim holds BS and MS EE degrees from Tufts University and an MBA from Harvard.

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• Anyone can negotiate — and everyone does.

• Doing deals too fast means they may be poorly negotiated deals. Good deals take time and care.

• Carefully negotiated deals stay in place longer and can be more profitable.

• Companies that negotiate systematically have predictable revenues, cash flow and earnings.

• The tips in this webinar should help you (and your colleagues) negotiate systematically.

Win on Price -- Lose the Deal

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Polling Question

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Polling Question

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• Sales negotiations are often viewed as simply…

– Vendor sells: Product

– Customer buys: Product (after price haggling)

• Few negotiations are that simple because…

– Product/service/company is unique

– Unique offerings means negotiation is unique i.e. not simple

• Unique sales negotiations are more complex as… – Vendor sells: product, services, delivery, expertise, futures, company reputation

– Customer buys: improved financials, customer acquisition, lower costs, improved competitive position, etc.

Negotiating Goes Beyond the Price

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Three Phases of Sales Negotiations

• Negotiate your value

– Be Prepared

– Lay Foundation

• Negotiate the offering

– Before Starting

– In the Thick of It

• Negotiate the deal

– Coming to an Agreement

– As the Dust Settles

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Negotiating Tips for Executives

Negotiate Your Value

Be Prepared

• Understand Value of What You Offer

• Be Clear on Why (and What) You Are Negotiating

• Make Negotiation Fit Market Strategy

• Support Negotiation Process

Lay Foundation

• Qualify Interest Level — Which stakeholder has wins the most?

• Don't Start Negotiating Too Early – Does the Customer believe your value?

• Set Limits and Designate Lead Negotiator – Who/what/when/how far?

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Negotiating Tips for Executives

Negotiate the Offering

Before Starting

• Have Right Attendees at Meeting

• Stay Focused on What Changes Your Economics

• Maintain Control Over Your Side of the Conversation

• Don't Answer Every Question

In the Thick of It

• Don't Play "What If" Games

• Keep Your Eye on the Actual Amounts Involved in a Deal

• Give Something; Get Something—Value Trade-Offs

• Use Term Sheets Before Contract Details

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Negotiating Tips for Executives

Negotiate the Deal

Coming to an Agreement

• Agree on Value of Offering

• Not Every Deal Can Be Done

• Don't Bluff Final Offers.

• Don’t Volunteer to Draft Contract

As the Dust Settles

• Avoid Surprise Demands

• Be Careful With Last Minute Changes

• Don’t Just Accept Late Requests for Concessions

• Follow Through on What You Negotiate – Measure the Value

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• What Does “a Better Price” Mean?

• Learn Why a Competitor Cuts Prices; Ignore Some Price Cuts

• Keep Price Lists Simple Use Printed Price Lists

• Make Volume Purchase Agreements Work

• Reserve Large Discounts for “Real Big Deals“

• Invest Your Discount Dollars Wisely

Tips For Negotiating Prices

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• Think in advance about negotiating a deal.

• Train people to negotiate better deals

• Develop customer-specific, quantifiable value propositions

• Build models to assess the financial impact of negotiated items

• Provide coaching assistance during sales negotiations

Next Steps

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Thanks for Watching!

jaymanson@comcast.com

Jay Manson

(781) 727 – 5977

www.SoftwarePricing.com

jimg@softwarepricing.com

Jim Geisman

(508) 647 – 0330