Sales Negotiation For Results

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What is a Sales Negotiation?coursedetails

A sales negotiation is a discussion between buyer and seller. It usually leads to a closing of the deal. The negotiation process’ main objective is to reach an acceptable agreement for everyone.

Negotiations can be a one-time or ongoing event. However, they can happen at any point in your sales process. Some experts consider it to be an ongoing strategic process. This includes lead generation, nurturing leads, and finally, negotiating and signing a deal.

Negotiations are a process of giving and taking. This means that one side will always win. Even if the concession is only a nominal one, the other party must still agree to it.

How Negotiations Work

Negotiations are when two or more people come together to achieve a common goal. The other side will present its position, and the other party will either accept or reject the conditions. This process will continue until both sides reach a solution.

Before a negotiation starts, participants should learn as much about the other side’s position as possible, including the strengths and weaknesses, how they can prepare to defend their positions and any counter-arguments that the other party may make.

It depends on each circumstance to how long it takes for a negotiations take place. Negotiations can take just a few minutes or more depending on the situation. A buyer and seller might negotiate for hours or minutes to sell a car. However, it may take several months or even years for the governments of more than one country to reach a trade agreement.

Principled Negotiation in the Win-Win Situation

A strong position is a good place to start a negotiation. If you get too involved, conflict could quickly arise, and the discussion might end in disarray.

This can be avoided by using “principled negotiation,” a type of win-win negotiation. Roger Fisher, a Harvard Law School professor, and William Ury, an academic, anthropologist and negotiation expert, developed this method in their 1981 book “Getting to Yes.” They identified five steps in principled negotiation* and claimed that negotiations work best when there is cooperation towards a common goal.

Let’s take a look at the five stages that make up principled negotiation.

sales negotiation1. Separate people from the problem

First, try not to identify your opponent as your “opponent.” Focus on the issue at hand and ignore personality differences. This requires you to be aware of three things: perception, emotion, and communication.

You will be able to make better decisions if you remain calm throughout negotiations. Pay attention to the emotions of each party and refrain from reacting in any way that could cause the discussion to become heated. Instead, you can use your emotional intelligence skills and understand the reasons for the current debate. Also, try to understand each side’s concerns, needs, and interests.

To avoid miscommunications, ensure that your communication is clear, precise, and concise. Active listening techniques include looking directly at the speaker and listening attentively. Each person should finish their sentence before you reply.

2. Focus on your interests, not your positions

People are rarely “difficult” for the sake of being difficult. Almost always, there are valid and real differences behind conflicting positions. Each person’s view of the issue can be affected by their values, beliefs and responsibilities. Keep the conversation civil and avoid blaming others. If everyone is aware that their interests were considered, they will be more open to other points of view.

3. For mutual gain, invent options

Each side will have gained a greater understanding of the other’s needs and may be able to find a solution. It is possible that you are close to an agreement. You may be on the verge of agreement. If so, you can still open yourself to the possibility that a new position might exist.

To find the solution, brainstorm as many ideas possible. Accept all suggestions and then make the most promising into new proposals you can bring to negotiations.

4. Use objective criteria

It’s not just about “setting out facts,” since different needs, interests and goals can cause people interpret facts differently or make it difficult to choose facts that support your position. For example, you might become convinced that getting the product to market quickly is the best way to go during interdepartmental negotiations in your company. Your willingness to listen may decrease as your position becomes more entrenched. However, there are also indications that launching the campaign later in the year to coincide with a holiday in the country would be beneficial for long-term sales. This would allow your marketing team to have more time to plan a campaign.

Talk about a set objective criteria to guide your discussions. These criteria could include legal standards, market values, mission statements, and contractual terms. A commitment to reach an agreement and sharing values is demonstrated by agreeing on standards.

5. Know your BATNA (Best Alternative to a Negotiated Agreement).

If you are unable to get all you want, your BATNA is your preferred fallback option. This is not the same thing as a “bottomline,” which can be a fixed position that may limit your options and prevent you from taking a different course of action.

Think about what could happen if negotiations don’t reach your desired outcome. Then, choose the most appealing alternatives. These alternatives should be evaluated and your BATNA will be the best.

Negotiation Summary

Negotiating involves giving and taking. Negotiating requires both give and take. You should try to make the interaction pleasant and constructive for both sides. A successful negotiation will allow you to make concessions that are not important to you while giving the other side something that is significant to them. No matter the differences between your interests, your approach should foster goodwill.

Good negotiation results in both parties being satisfied and ready for business again. Learn more about Negotiation Techniques by clicking the blue button or following one of our inner links.

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