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3 Tips for Better Sales Negotiations 3 Tips for Better Sales Negotiations July 26 Tyler Toffoli Jersey , 2013 | Author: Joe Mangano | Posted in Business
Negotiating is a fact of business life. For a lot of sales folks developing the talents of negotiation are one of the more challenging sales strategies to conquer.


The greatest misunderstanding about the negotiation process is it is adversarial in nature. It doesn’t need to be that way.


Here are 3 sales tips that can help in making it less complicated for you when it is time for your next negotiation.


Tip 1. Go First . Many sales folk are hesitant to make the first offer, because they feel just like they may be setting a price that is too low (or too high, dependent on the situation). Let’s say you have developed an especially compelling value added bundle and need to propose a price to your prospect. Although this might be the 1st time your prospect is hearing your offer, it is smarter going into a negotiation assuming that the prospect has a fair idea of the price of your proposal. If you allow them to go first their first offer will invariably a low one.


When you make the 1st pricing offer, you are setting a ‘pricing anchor ‘ for the remainder of the negotiation process. According to a Harvard Business School article, when the seller makes the 1st offer, the final price is generally higher than if the purchaser made the 1st offer. The 1st price sets the ‘price anchor’.


Tip 2. Be Quiet. Most sales people are extroverts and like to chat. When faced with a situation that makes most people nervous, like in a negotiation setting, people have a tendency to chat more. When we talk, we miss plenty of info that is useful to the negotiation. If you make a suggestion and your customer balks, saying “your price is too high”, don’t respond straight away. If you remain quiet, your buyer will fill the silence with reasons why they feel the price is too high. From the info you gather, you can then continue the negotiation process using the info you have just learned. Show patience and let them talk.


Tip 3. Know precisely what you want. You should always enter into a negotiation with a clear strategy of what you are prepared to accept and what you aren’t happy to accept. The great majority of people go into a negotiation session with one or the other. Often, sales people go into a session with a tactic of ‘hope for the best’. When you have exceedingly clearly defined parameters, you really have more power in the negotiations process. When you have more flexibility, the negotiations process becomes far less nerve wracking.


PS. Never show your strategy to the other party, or you will give them too much leverage.


For more pointers about improving your sales negotiation talents you should head to the site PinnacleSelling. The site is a good source of sales tips and sales strategies to help you outsell and standout from your competitors. Joe Mangano, PinnacleSelling’s Founder and Editor makes a speciality of helping sales folks, sales management and business owners improve their sales performance.

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