wecandobiz
15th July 2009, 08:34
Negotiating with customers at order time is many people's worst nightmare. It needn't be though if you start negotiations well prepared. Some tips:
1) Know what you want to come away with
Don't start any negotiation unless you have a firm idea of your perfect outcome, your target outcome and your walk away point.
Your perfect outcome is arguably the best that will happen: your ideal price, ideal delivery... It's unlikely you'll get it, but if you don't have your eyes set on the prize than it will NEVER happen! Work towards this as your goal but knowing you'll most likley have to accept compromise to make the deal better for both sides.
2) Negotiating is a trade -- give but ask for things back!
As said above, it's likely you'l have to step back from your perfect outcome to make the deal more pallatable to your customer. That's no bad thing as the outcome needs to work for both sides, but there is no reason why they should get it all their way. If they ask for compromises you find hard to swallow, ask for something back from them that would help you and you believe they'll give: if they want a lower price, ask them to increase the quanity or to pay sooner, for example. Show them that you're wiling to give in to their demands, but this is NEGOTIATION rather than just you bending over and taking it! Even if it's little things, get them helping you out as you help them. If they won't play it this way, politely point out that if they won't negotiate then neither can you, give them a little and make a suggestion as to what would help you to give them more of what THEY want.
3) Negotiation starts from your VERY FIRST contacts
OK, this should really be point one if we're doing this chronologically, because you should be preparing yourself from the very first point you have contact with a customer that one day you'll be sat round a table asserting yourself.
Thinik about it: if you have always rolled over, met them when they wanted to meet, done what they asked, when it comes to negotiating and you dig your heals in on points, they won't think you're being reasonable in the context of how accomodating you've always been. They'll want the Old You back! And you find yourself conceding again.
It sounds silly, but when you FIRST speak to a customer and they ask if you can demo to them on Tuesday, make it Wednesday, even if your Tuesday is free. Assert yourself from the off. Set in their subconscious that YOU drive the agenda and get them used to bargaining with you. Don't be unreasonable, but just subtly bargain so they're used to it with you from the start.
Give in to all their demands from the start and you'll never be able to switch effectively, seriously compromising your position at the negotiating table.
Hope this all helps. Comments welcome of course.
IH
1) Know what you want to come away with
Don't start any negotiation unless you have a firm idea of your perfect outcome, your target outcome and your walk away point.
Your perfect outcome is arguably the best that will happen: your ideal price, ideal delivery... It's unlikely you'll get it, but if you don't have your eyes set on the prize than it will NEVER happen! Work towards this as your goal but knowing you'll most likley have to accept compromise to make the deal better for both sides.
2) Negotiating is a trade -- give but ask for things back!
As said above, it's likely you'l have to step back from your perfect outcome to make the deal more pallatable to your customer. That's no bad thing as the outcome needs to work for both sides, but there is no reason why they should get it all their way. If they ask for compromises you find hard to swallow, ask for something back from them that would help you and you believe they'll give: if they want a lower price, ask them to increase the quanity or to pay sooner, for example. Show them that you're wiling to give in to their demands, but this is NEGOTIATION rather than just you bending over and taking it! Even if it's little things, get them helping you out as you help them. If they won't play it this way, politely point out that if they won't negotiate then neither can you, give them a little and make a suggestion as to what would help you to give them more of what THEY want.
3) Negotiation starts from your VERY FIRST contacts
OK, this should really be point one if we're doing this chronologically, because you should be preparing yourself from the very first point you have contact with a customer that one day you'll be sat round a table asserting yourself.
Thinik about it: if you have always rolled over, met them when they wanted to meet, done what they asked, when it comes to negotiating and you dig your heals in on points, they won't think you're being reasonable in the context of how accomodating you've always been. They'll want the Old You back! And you find yourself conceding again.
It sounds silly, but when you FIRST speak to a customer and they ask if you can demo to them on Tuesday, make it Wednesday, even if your Tuesday is free. Assert yourself from the off. Set in their subconscious that YOU drive the agenda and get them used to bargaining with you. Don't be unreasonable, but just subtly bargain so they're used to it with you from the start.
Give in to all their demands from the start and you'll never be able to switch effectively, seriously compromising your position at the negotiating table.
Hope this all helps. Comments welcome of course.
IH