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Sales Negotiation Skills

Sales: An exchange of goods, services, or other property for money Negotiation: Getting What We Want When do we Negotiate Give and Take

Types of Negotiations

Key Types
Distributive Negotiation : Claiming Value Integrative Negotiation: Creating and Claiming Value Multiphase and Mutiparty

Distributive Negotiation
Parties compete over the distribution of a fixed sum of value Who will claim the most value Gain by one side at the expense of other Win - Lose

Distributive Negotiation
Sellers Goal: Negotiate as High as possible Buyers Goal: Negotiate as Low as possible Both try to Pull the final deal point close to their desired price

Distributive Negotiation
Relation VS Reputation Eg: Exec bargains house shifted to new territory Information: Lesser knowledge about your weakness and more about your bargaining strengths, betters your Position

How to succeed in Distributive Negotiation

Plan your First Offer Dont let your information Collect Information of the other side Dont overshoot

Integrative Negotiation
Parties cooperate to achieve maximum benefits by integrating their interests into an agreement while also competing to divide the value Create as much as value for you and other side Claim value for yourself

How to succeed in Integrative Negotiation

Provide Significant Info about circumstances Explain Why they want to make a Deal Talk abour Real interests or Business Constraints Reveal and Explain preferences: Issues / Options Consider and Reveal Other sides interests- add to deal Creative options for both parties

Multiphase Negotiations
More than one meetings Perform agreements: build trust Performance Failure : warns other side Helps familiarity of parties leads to more phases / discussions

Multiparty Negotiations
More than Two party / two people Can lead into Coalitions Weaker party gathers strength to push through preferred proposals or block those they find unacceptable

Types of Coalitions
Natural Coalition: Share Broad range of common interests Single Issue Coalition: Differ on other issues, but unite to support a single issue

The RESPECT formula

Ready yourself Explore needs Signal for movement Probe with proposals Exchange Concessions Close the Deal Tie up the Loose Ends

Use Your BATNA : Create Leverage

1. 2. 3. What is BATNA Your BATNA is your powerhouse How to work out Your BATNA Whar are your alternatives: List Them, Choose the Best What could improve your BATNA: Rework on terms / condition Reframe your NEW BATNA, if you succeed in above.

Identify Interests
Dig Behind Positions Reconcile Interests

List,Rank and Value the Issues

List the issues Rank the issues: High, Medium, Low Value Every Issue

Other KEY aspects

Plan Your Agenda Determine Your Authority Plan your First Offer Pick Your Team Devise Your Time Plan Analyse the other Party Plan Your Strategy

Reservation Price and ZOPA

RP: Least Favorable price where you can accept an agreement ZOPA: The PRICE window

Answer yourself
Should I ever Let them Know my ZOPA What is the opposition is a Hard Bargainer How should I response if the opposition suggests a change after the deal is done! What should I do if the opposition is a temper tantrum

Professional Sales Techniques

Qualifying Sales Techniques Sales Persuasion Techniques Strategic Sales Techniques Closing Sales Techniques

Sales Qualifying Techniques

The best sales qualifying techniques then are as follows: Have a profile of your ideal customer. Have a set of criteria that customer's must meet before you sell to them. Have a sales system or process to judge how customer's measure up.

Persuasion Techniques
Meaning:dictionary defines persuasion as "the ability or power to persuade". So persuasion techniques are those that "give the power to persuade". And to persuade is "to induce to undertake a course of action". Finally, to induce is to "stimulate the occurrence of". persuasion techniques involve the power to stimulate someone to do something by getting them emotional.

Sales Strategy Techniques

Sales Strategy - Direct A direct sales strategy is the sales technique used most of the time. It is the frontal assault on the enemy's position (The enemy in our case is the status quo or your competitor, not the customer). A direct sales strategy means going head to head, feature for feature against your competition. A direct sales strategy is a hard way to sell, unless your have clear superiority over your competition. Sales Strategy - Indirect An indirect sales strategy is a less used, but more sophisticated sales technique. To use an indirect sales strategy means to change the rules of the sales evaluation process. You do this by introducing new capabilities and criteria that the competition may not have and making them essential to the buyer's evaluation criteria.

Closing sales techniques

You are right: "I can understand your hesitation, the color is certainly not exactly what you had in mind. But many of our customers felt the same way, until their friend received the gift. They found that this color is very popular." Competitor endorsement: "Mr. Smith, as we discussed earlier, this is a popular color. In fact, your neighbour Mr. Jones purchased one yesterday." A choice: "Mr. Smith, would you like the blue color or the red color?" Bluff Called: "Mr. Smith, if I can get you the yellow color, would you take it?" The impending doom: "Mr. Smith, please come and see us after you and your wife talk about the color. But, one of the reasons I wanted to wrap this up today for you is that the price increases tomorrow." The crowded room: "One of the reasons I wanted to wrap this up today for you is that we only have five blue items left in inventory." Logical: "If I can prove to you, without a doubt, that blue will work, will you give it a try?" The Challenge: "Mr. Smith, I don't think you will need the blue color. Can I show you the red color?" Value Added: "Mr. Smith, we have developed customer financing so you won't have to worry about that." Kick the Tires: "Mr. Smith, it looks like you are serious about this, but have some doubts. I'll tell you what, buy it and take it home for a couple of days. If I'm wrong, if you aren't satisfied for any reason, bring it back for a full refund." Pre-Close: "If you buy this model, what kind of speakers would you plan to use with it?" An assumption: "Mr. Smith, where would you like this delivered?" Luxury: "Treat yourself to something nice today and give us a try." Reverse: "Mr. Smith, now that its over, could I ask just one question? Why wouldn't you buy from me?"

Closing sales tips

ABC Silence after Watch emotions Over-closing There are no bebacks Closing need not mean a sale today Horses for courses It also depends on the sophistication of the customer. A professional buyer in a big company has been on all the sales courses themselves and can see a closing technique coming from several miles away. Using simple methods with sophisticated buyers will only serve to annoy them, so rather than treating the situation like one-off selling, use more relationship selling methods, seeking to understand them and meet their needs, both professional and human. Everyone, even buyers, like to be treated with respect, and if they do catch you being a bit crass, then apologize and be more careful where you tread!

Nonverbal Negotiation Skills

As much as 90 percent of the meaning transmitted between two people in face-toface communication is nonverbal. This means that as little as 10 percent of your verbal communication will have an impact on the outcome of your negotiations!

Face and head

*Someone who is trying to hide something will avoid eye contact. *Someone who is bored may gaze past you or glance around the room. *Someone who is angry or feels superior to you may maintain piercing eye contact. *Someone who is evaluating what you are saying may turn his head slightly to one side, almost as though trying to hear you better. *Someone who is in agreement may nod his head as you are speaking.

Body
*Someone who is interested and in agreement with you will usually lean toward you or position her body closer to you. *Someone who is in disagreement with, uncertain about, or bored with what you are saying will generally turn her body away from you and lean back farther in her chair. *Someone who feels insecure, nervous or in doubt may move from side to side, shifting her weight.

Arms
In general, an open arm position suggests that someone is receptive to the negotiation process. Watch especially for changes in arm position. If your counterparts arms are lying open on the table where you are both sitting as you start the negotiation., and he takes his arms off the table and crosses them over his chest when you mention that your company has a standard deposit of 50 percent on all first-time orders, thats a good indication that this information was not received well. You may want to clarify your words or, better yet, ask your counterpart whether he has a concern about the deposit.

Hands
Peoples true feelings are commonly revealed through hand movements. For example, open palms generally convey a positive message. This goes back to medieval days, when people showed their open palms to prove they were not carrying any weapons. Involuntary hand movements can be particularly telling. People often touch their nose, chin, ear, arm or clothing when they are nervous or lack confidence in what they are saying.

Legs
In a study described in How to Read a Person Like a Book, Gerard I. Nierenberg and Henry H. Calero found after videotaping 2,000 transactions that no sales were made by people who had their legs crossed. If you want your counterpart to perceive you as cooperative and trustworthy, sit with your legs uncrossed, feet flat on the floor and body tilted slightly toward the other party. This posture will give you a better chance of sending a positive signal.

Interpreting Body Language

Dominance, Power Feet on desk Piercing eye contact Hands behind head or on hips Palm-down handshake Steepling of the fingers Standing while other is seated Submission, Nervousness Fidgeting Minimum eye contact Hands to face, hair, etc. Palm-up handshake Throat clearing

 Disagreement, Anger, Skepticism Red skin Finger pointing Squinting eyes Frowning Turning away Crossing arms or legs Boredom, Lack of Interest Avoiding eye contact Playing with objects on desk Staring blankly Drumming on table Picking at clothes Looking at watch, door, etc.

 Uncertainty, Indecision Cleaning glasses Looking puzzled Putting fingers to mouth Biting lip Pacing back and forth Tilting head Suspicion, Dishonesty Touching nose while speaking Covering mouth Avoiding eye contact Moving away Crossing arms or legs

 Evaluation Nodding Squinting Putting index finger to lips Tilting head slightly Stroking chin Confidence, Cooperation, Honesty Leaning forward Opening arms and palms Maintaining great eye contact Keeping feet flat on floor Smiling Moving with counterparts rhythm

Handshake
Here's the technique for giving a "power handshake" that communicates that you are confident, in control, and not afraid to use it. Reach to shake first, with your right palm open, tilted slightly to the right. Wrap your grip around the webbing between his thumb and index finger, just past where his four knuckles join the fingers to the hand. Squeeze firmly (squeeze really hard if you are greeting a competitor). Give the grip a twist of about a quarter turn or so to the left of center. The key is getting your grip first into the area past where the four knuckles join the fingers to the hand. Once your hand is in here, the other person will be unable to squeeze anywhere near as hard as you can. This establishes your dominance in the situation.