What Is Sales Negotiation?

Sales negotiation refers to the negotiation conducted by sales personnel in order to sell their products to buyers at the highest price and lowest cost. The purpose is to successfully sign a sales contract.

Sales negotiation

The sales negotiation is roughly divided into three phases: planning and preparation phase, interview phase, and subsequent closing phase. When it comes to negotiations, most people always think of interviews. The planning and preparation stages are the most critical of these three stages. At least one typical negotiation will have an outcome. 50 is decided before you meet the client.

The planning and preparation stages are so important, and most salespeople still rush into the negotiations when they are negotiating, failing to make adequate preparations, making the negotiation results unsatisfactory. Therefore, adequate planning and preparation before each sales negotiation is the cornerstone of our good negotiation results.

The planning and preparation phase of sales negotiations involves the following:

Set negotiation goals

1. Know what you need: If you start negotiating without thinking about what you should get from the negotiation, then after the negotiation: (1) you may leave with many "gifts"; (2) you may give up Valuable projects end up being worthless. So at the end of the negotiations, you should have a clear vision of what you need.

2. Know why you need it: For you, how useful are the results you get. Figuring out what is the cause of what you want may help you achieve your covert purpose. Even if you haven't deliberately considered these reasons.

3. What will happen if you don't achieve your goal: If you don't get the result you want, what is the worst thing that can happen? If you can accept it, or when you understand what will happen, maybe you can find other ways to solve the problem.

4. Know what you think about first: Break down all the goals you want in the negotiation into several components, and think about: which part is considered first; which part is second; and which part is considered last.

5. What I can't accept: In the negotiation, there may be some conditions that I can't accept anyway. If the negotiation will force you to go beyond these principled limits, maybe you are not worth the time and effort to continue talking.

6. Know your negotiating boundaries: One of the most valuable things you can do in a negotiation is to figure out your boundaries in the negotiations. This way you can know when you should stop negotiations; when you can say "yes"; when you can say "no"; when you must be tough; when you can leave the negotiation table to end the negotiations. In other words, if you reach this boundary, you can consider what you should do.

7. Set yourself the top-line goals, realistic goals, and bottom-line goals for negotiation:

When you know what you want, what you don't want, and what is most important to you, you can start to set yourself the top, realistic, and bottom line goals in the negotiation. These goals are an aspect of what you specify about the results you want to achieve and the range of activities you have.

The top line goal is to get everything you really want. In an ideal state, you have the possibility to achieve it.

The realistic goal is to actually get the result you want. The results of different negotiations may be different.

The bottom line goal is your bottom line. When the negotiation reaches this boundary, you should terminate the negotiation and leave the negotiating table.

8. What concessions can you make: Negotiation is full of bargaining, compromise, and concessions. In order to get the results you want, you have to make some concessions. So you should consider what concessions you are going to make to achieve the desired outcome of the negotiations. At this time, you should find out:

(1) What must I have? What am I not prepared to make any concessions?

(2) What is not important to me?

(3) What do I have to take in exchange for preparing to give up?

Seriously consider each other's needs

Preparations for negotiations must not only consider their own requirements and needs, but also consider what the counterparty may need. At this time, you need to think in a different way and stand on the other side to consider the problem. If you are the other party, what do you need in the negotiation; why do you need it; what may be the reason behind this result; what issues are most important to you; what are your first considerations; what issues cannot you make With the slightest concession; what could be the worst result for you; what are your top line, reality, and bottom line goals; what are you going to trade for? What questions to ask; do you have enough factual data or information to support your position and opinion.

Although you cannot answer the above questions accurately, after careful consideration and speculation, you can better grasp the progress and direction of the negotiations.

Assess relative strengths and weaknesses

The concessions you may make and the items you can exchange depend on your strengths and weaknesses in the negotiation. Strength refers to the dominance or influence that can be exerted on the opponent's actions, and has the form:

1. Decision authority: Do you have the right to make formal decisions?

2. Expert power: Do you have a wealth of knowledge about the issues discussed?

3. Do you have enough time for the issues discussed?

4. Your determination and perseverance;

5. Are you fully prepared?

6. Do you have rich negotiation experience?

7. Do you have inside information?

8. Do you know someone who can influence the outcome of negotiations?

9. Do you have the right to use certain sanctions or pressure?

When evaluating strengths and weaknesses:

Governance only comes into play when both parties recognize its existence and share the same views on its use.

If you are stronger than the other party and both parties know, then you can use this advantage in the negotiation to make the other party aware of the consequences of not making concessions to your proposal.

If you are stronger than the other party and the other party does not know, then your dominance will not work. If you have weaknesses and the other party does not know, then you are stronger than you think.

Skilled negotiators are good at using their dominant power to influence and persuade the other party, rather than using this dominant power to defeat the other party.

Experienced negotiators will think twice before making full use of the other party's weaknesses, realizing the necessity of working together, which will increase the confidence of the other party in the negotiation.

Negotiation skills cannot replace negotiating strength. Negotiation skills can only bring temporary advantages.

Develop negotiation strategies

Having your entire strategy in place is an important part of preparations for negotiations, and the main points are:

1. What questions should we ask during the first meeting?

2. What questions might the other party ask? How should we answer these questions?

3. Do we have enough factual data and information to support our position? If not, what information should be added?

4. What negotiation style should we adopt?

5. Select the place and time for negotiation;

6. How to start?

7. What impact might previous negotiations have on this negotiation?

8. How and how can the habits and customs of the negotiating place affect each other?

What to prepare for inter-group negotiations

1. Who talks?

2. Who confirms the level of understanding?

3. Who asks questions? What kind of question?

4. Who will answer each other's questions?

5. Who will ease the tension and show concern for others?