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Negotiating
Copyright 2006 AchieveGlobal , Inc.

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SUMMARY:

1. Understanding Negotiations
2. Planning Negotiations
3. Conducting Negotiations

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1. Understanding Negotiations - Sales Negotiation

CUSTOMER COMMITMENT Agreement to pay a price, in

return for deliverables, under specified terms and conditions

SALES NEGOTIATION Process by which differences in

price, delivrables, and terms & conditions are resolved in order
to gain customer commitment

SUCCESSFUL NEGOTIATION A win-win2 agreement that

satisfies the customer, the salesperson and sales organization

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1. Understanding Negotiations - When to negotiate?

Customer indicates a conditional commitment

Customers raises objections that salesperson cannot

overcome with benefits

Salesperson confirms that all objections have been raised

Salesperson proposes price, deliverables and terms &

conditions

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1. Understanding Negotiations - Negotiating

alternatives

Alternative

When to use?

Make a trade off

Anytime the best choice

Add an enhancement

No flexibility to meet

Split the difference

Unimportant difference to

Make a concession

Trivial difference at end

Walk away

One or more parties will

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for a win-win2 agreement

customer need

expedite resolution

lose

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2. Planning Negotiations - Analyze the situation

Identify customer motivations and objections to your initial

proposal

Identify sales motivations and objections to the implied

customer counterproposal

Describe a win-win2 agreement:

customer win
sales organization win
salesperson win

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2. Planning Negotiations - Develop alternatives

Identify variables
Generate alternatives
Evaluate alternatives according to how well they satisfy
Your customer
You and your organization

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2. Planning Negotiations -Optimize the outcome

Identify customer enhancements

Identify acceptable combinations of alternatives
Establish a walk-away position
Identify benefits to emphasize
Identify assumptions to test

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3. Conducting Negotiations - Position the negotiation

Why?

To establish clarity, structure and a positive atmosphere

How?

Summarize the sale/negotiation to date

Confirm customer objections
Establish the agenda

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3. Conducting Negotiations - Explore alternatives

Why?

To identify an acceptable alternative for resolving each difference

How?
Clarify / confirm the what and why of customer needs (always the first step)
State the what and why of sales needs (always the second step)
Test alternatives (What if)

General idea
Specific alternative

Invite customer suggestions

Emphasize benefits (product/service, company, proposal, alternative)
Make it look difficult
Confirm acceptability (If then)
Put the acceptable alternative aside (always the last step)

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3. Conducting Negotiations - Formulate agreement

Why?

To bring closure to the negotiation

How?

Make a new proposal

Summarize the benefits
Clarify steps for finalizing the agreement

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3. Conducting Negotiations - Handle an Impasse

Why?

To progress successfully in a negotiation

How?

Acknowledge the impasse

Establish reasons for persevering
Suggest a temporary change of pace

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Thank You!

Copyright 2006 AchieveGlobal , Inc.