Tips for Successful Negotiating by Phöne

­ By Art Sobczak **
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Most of us negotiate something every day. Whether it's getting our kids to
willingly clean their rooms, or hammering out an elephant-sized contract
with more details than a politician has "special-interest" donors, our
ability to haggle effects our results. Here are some useful negotiating
tips.

1. Define Your Negotiables, Other than Price.

Inexperienced, unconfident, or plain old lazy reps take the easy route and
drop their price at the first sign of the other person seeking to get a
better deal. Instead, first determine what you could offer, if needed,
that has high perceived value to them, but little cost to you. For
example, moving up the delivery date if they need it quickly, extending
the warranty period . . . some distributors and suppliers like to throw in
some products the customer isn't buying. This has high perceived value,
and gets the customer to test the new product, which might pay off with
future purchases.

2. Analyze Your Strengths, and Their Needs.

Before calling, list what you know they require and emotionally want, what
you have, and what you want. You might know that this buyer always tries
to pound you on price, but you also know you're working from a position of
strength because you're the only one who has the quality of product he
needs.

3. Set Your Objectives.

Just like every call, define, "What do I want them to do as a result of
this call, and what do I want to do?"

4. Aim High, Set Minimums.

As part of your objectives, swing for the fence! Think big. Set the most
favorable objective possible (one that is within reason). The richest
salës reps I know can't believe anyone would think otherwise. Likewise,
set minimums that you're willing to accept. You'll know how much you have
to play with.

5. Prepare for their Possible Tactics.

It's easier if you know the person. For example, knowing that Joe always
starts with an outrageous request helps you prepare your counter-tactic.
Otherwise, you need to dry-run through possible demands and tactics along
with your responses so you're not blindsided into giving away something
you didn't intend to.

6. Gather Information.

As with all salës calls, the more you know, the better.

7. Don't Give More Information (or Anything Else) than Necessary.

I've seen salës reps offer price concessions that weren't asked for ("The
price starts here, but I might be able to do a little better."), and give
up information that the customer used to ask for more concessions ("You
mentioned another customer had additional training manuals thrown in frëe.
I want those too.")

8. Don't Split the Difference.

It's human nature, but it costs you monëy. Let's look at the math. Your
asking price is $50. They offer you $30. You counter with $40 and they
figure splitting the difference is fair. Your tactic: come back with a
pained tone of voice, "I might be able to do $46 or $47." It's more likely
you'll end up better than $40.

9. Trade Your Concessions.

Get something in return. If you get them the better volume price, ask for
a commitment for a blanket purchase order. One-sided giving rarely makes
for a healthy relationship.

10. "If I, Will You?"

A tactic to accomplish the previous point. Before agreeing to what they
want, get a commitment on what they'll give in return. "If I'm able to
move your request to the front of the line, will you increase the order by
500?"

I believe I read this in an ad in an airline magazine for a negotiation
seminar: "You don't get what you deserve; you get what you can negotiate."

About the Author:
Art Sobczak helps salës pros use the phöne to prospect, service and sell
more effectively, while eliminating morale-killing rejection.