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Sales Strategy
How to Be a Top Sales Negotiator
Dec 15, 2017 | Canadian Professional Sales Association lock

The negotiation; while most people do not enjoy the back-and-forth process of coming to an agreement, there’s no doubt that some people are very good at it. They somehow seem to get the best terms and prices without a lengthy or heated battle. If you want to become a top sales negotiator like these people, read our tips.

Understand and Communicate Your Product’s Value

The first step to being an excellent negotiator is to effectively manage the sales process. You do not want to enter the negotiation phase with unanswered questions about your product, because that will cause confusion and delays. You also need to understand the value that your product or service provides, as this will have a huge impact on your ability to charge a premium. Ensure that you communicate the value clearly, so that your prospect understands exactly why you charge your rate.

Do Your Research

It is also critical to understand the other players in the market and their pricing. If your product provides a lot of value but there are several other competitors offering something similar, you will have less room to move on pricing. You also need to know your absolute lowest offer, and the terms that your organization can accept. Going into your negotiation prepared will ensure that your offers stay within an acceptable range to your client and your boss.

Be the First to Say a Number

This tactic is called “anchoring”, and it allows you to start the negotiation around a certain figure. If you want to drive the price up, your first offer should be much higher than the number you think you will settle around. Anchoring is a way to set the range of the negotiation, and being the first to drop a figure means you have the advantage of setting the range.

Always Counteroffer

Negotiations are psychological. People want to feel like you have made concessions and given them something extra. If you make your best offer first and you have no flexibility to move on pricing or terms, your client will feel like you are being unreasonable. For this reason, you should always start the negotiation at a higher price point than you expect to get, and make a counteroffer.

Never Take the Negotiation Personally

While negotiations are psychological, they are not personal. Your client has a responsibility to get the best possible deal for their organization, and so do you. When it seems like your client is asking for too much, don’t get frustrated. It’s just business, and if you treat it as such, you won’t encounter conflict.

Don’t Hurry

Rushing is always a bad idea, and this is especially true in a negotiation. It can be tempting to hurry through the negotiation phases, especially if you are uncomfortable with the process. Rushing could cause your prospect to feel too much pressure, and it could lead you to make mistakes and leave money on the table. To be a top negotiator, you must remain calm and consider everything before making your next move.

Walk Away If You Can’t Come to an Agreement

If you have done your homework properly, you will know your lowest possible offer. This will help you determine when it is time to walk away. Sometimes a client simply can’t agree to the terms or price that make sense for your organization, and, in these situations, you need to move on. It never feels good to lose a deal, but it will feel good to know that your negotiation skills are what saved you from losing the company money.

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