5 Tips to Create a Win-Win Outcome Without Discounting Your Price
We will look at our calendar before you know it and ask, “When did October Negotiation Tactics Without Discounting Price-Scott Bush get here?!” When we near the end of the year, for many salespeople, the final drive to bring in revenue brings new challenges. Think about it. Why do most orders and POs crash at the end of the month or worse after the calendar year is over?
To carry in last-minute profits, consumers know all about targets, fees, incentives, and sales competitions. So… they wait for you to break down and make it possible for the price to become the only thing on the table.
The “Golden Rule” of Negotiating: never let a negotiation come down to one issue…ever!
About why? Since, by definition, a winner and a loser exist. Unfortunately, when a competitive price is the right price, a typical habitual inclination is to offer healthy discounts. While looking good in the eyes of your boss, I know you need that contract, but at what cost?
Let’s be frank, consumers are smart, and they’re getting smarter. They take negotiation lessons, while more product classes are taken by salespeople.
Use these 5 tips as a way to cultivate a more collaborative strategy with your client to eventually build a win-win result without discounting the price.
1. Have a sense of certainty
No buyer wants to purchase without faith from a salesperson… but the same buyer has NO trouble negotiating the price with that salesperson.
Act as though you belong in this situation and believe that with the value you have generated, you have earned the right to ask for the business. Don’t confuse confidence with arrogance, however. With their buying decision, a positive salesperson gives the client security. An arrogant salesperson lacks integrity and his client may be viewed as dishonest. Confidence comes from trusting in the product, believing in yourself, and understanding your client.
2. Establish a goal
Start each session with the end in mind and have a clear plan for the desired result.
- What’s the way you walk?
- Have you built a settlement range where you know what and what you need to have what you want?
- How long is the negotiation process expected to take place?
- When is it appropriate for this deal to close and is time on your side?
- With whom should you be negotiating?
- Do you know and do you have access to who the decision-maker is?
- What other stakeholders are expected to be there?
You must be organized in order to ensure a good result! “To quote Sun Tzu’s book “The Art of War”-“The combat is won or lost before the first shot is fired.
3. Know your leverage – Use the S3 tool
Strength: What does your product do that is required by the buyer? Does the commodity become exclusive if the rivalry does not fit equally? During the negotiating process, are you able to take chances knowing it can only produce marginal damage?
To give you the power to make sound decisions about their position as well as your own, use your experience, distinction, and information about their purchasing criteria.
Speed: Know the deadline for the buyer. In other words, how easily do they need this service or product and, more importantly, why do they need it?
These drivers can be used as pure leverage over a period of time. In order to gain a more competitive edge in their marketplace, companies are often searching for ways to be more profitable, effective, and creative.
If they have a date in mind as to when they need to introduce, distribute or start this product/service, then you have a date they own, not a date when you need the order.
In order to get a fee, use their deadline as a way to negotiate, not the sales date. Know, consumers don’t care about your needs and, if your needs become more important than theirs, they can use your deadline against you. The better you know their deadlines and the less they know about yours, during every negotiation, they will give you immediate control.
Substance: You have heard the expression “the person with the most toys wins.” Well, a substantial advantage is obtained by the person with the most knowledge from the other hand.
The trick is to get this data as early as you possibly can. About why? During the early (non-threatening) phases of the buying/selling process, buyers are more willing to offer details.
However, as the customer starts to think about making a decision, the 11th hour bell will start to ring and they will shut down knowing that their chances of getting what they want will be hindered by any details provided.
Right from the beginning of the sales process, have a goal of key details you need. With the 4 ‘W’s’ attached, ask some questions: Who, When, Why, and When. During the sales process, this will provide a strong base of information needed.
4. Order of Issues
List the problems in order of priority, as well as the simplest to the most complicated, in the negotiation.
Then begin to one-by-one hit each issue and do NOT start with the hardest problem on the table. You will never get to the other problems and a negative tone will start the discussions.
5. Concessions
I’m not suggesting that a concession is a monetary deal. It’s something the customer feels like they’ve got in return for offering you something or accepting something as an arrangement.
A few laws to follow:
- Have a rationale for any concession
- Make sure that the other side of the concession has worth
- Make slight compromises
- Slowly make compromises
Make Any concession seem very appropriate
* A fast bargaining strength test: Try not to discount for the next 30 days and see what happens to your sales ability as well as the confidence of the customer in you and your goods. Just list price offers!
Keep your ground and that amount will become the new norm for your client going forward until you lower your price point.
