https://www.drive-revenue.com/wp-content/uploads/2020/06/negotiation.jpg 912 1368 Malinee https://www.drive-revenue.com/wp-content/uploads/2017/04/flannery_logo_color.png Malinee2020-06-08 13:38:202021-06-29 06:52:30Common Negotiating Tactics to Avoid
Virtually all the experts would agree that the following mistakes are commonplace when salespeople start to negotiate. Awareness of these challenges may improve your ability to negotiate considerably.
- Getting emotionally involved. This one tops the list because, above all, your attitude toward something determines your success. If you appear needy, conveying the message to your prospect that you’ll do almost anything to get the business, your prospect will sense this weakness and exploit it. Avoid statements like, “We’d really like to get this done,” “I need this to make my quota this month,” and “What do we need to do to get you to buy from us?”
- Making unilateral concessions. A unilateral concession is agreeing to a prospect’s request too quickly, and without asking for something of equal or greater value in return. For example, your prospect asks you to lower your price by 5%. Your response is, “Sure, we can do that.” Put yourself in your prospect’s shoes and reflect on what message your response sent. First, he or she is undoubtedly thinking that since you agreed so easily, he or she should have asked for more. Second, he or she knows that since you dropped your prices so easily, you’ve probably overpriced the product or service. This creates doubt about the overall quality of what you’re selling. Finally, you’ve demonstrated your inexperience as a negotiator, opening yourself for more abuse as the negotiation goes on.
- Not understanding the prospect’s pain and alternatives. This is your “ace in the hole” and without it, you are defenseless. As we’ve previously mentioned in this book, most salespeople qualify poorly, betting on their powers of persuasion, features, and benefits, and charming personalities to get the job done. That doesn’t work. It’s very difficult, if not impossible, to stand your ground if you don’t know what the prospect’s business objectives are, and the downside if the problem is not fixed. Therefore, you must uncover how severe their pain is, how it impacts both the company and the individual you’re negotiating with, and what happens if the problem doesn’t get resolved through negotiations.
- Talking too much. When you are monopolizing the conversation it’s impossible to “read” your customer or learn what their specific needs are. You’re giving information, not receiving it. Falling into this trap is a sure way to lose.
- Not understanding your objectives and value items. Failure to have worked out, in advance, your list of primary (best case) and secondary (fall back) objectives will create confusion and indecision for you. If you don’t, you’ll just end up winging it, which is a surefire road to disaster.
Want to read more about negotiating? Try our earlier blog posts 5 Ways to Turn the Tide When Negotiating and The Art of Making Concessions.