Sales professionals really don't like to enter into a negotiation naked. When you don't have any authority to make concessions, you basically feel pretty naked. Likewise, if you have full authority, then you've got a whole other set of problems.
Back to the poor sales negotiator who has no authority. Hold on a minute, they actually do have a lot of authority. Here's what they have:
The sales professional is really only prevented from giving in to any of the other side's demands. Since he / she still has the ability to negotiate, it's worth the effort because there is the possibility that the other side will make concessions and a deal can be struck, or at least valuable information about the other side will be collected.
If you've ever been in a no authority sales negotiation situation, then you've probably dreamed of having the ability of being in a sales negotiation where you had full authority. Careful what you wish for - this isn't all that it's cracked up to be.
The reason that full authority is not necessarily what you either want or need is because the name is actually misleading. Full authority simply means that whatever you agree to is what your side of the table will end up having to do. This can lead to disaster. Here are some reasons why you might not want to have full authority when you enter a negotiation:
Should you find yourself in a sales negotiation with full authority, all is not lost. There are several ways that you can get out of this predicament. Here are a couple of suggestions:
If none of these "escape" techniques work for you, you can always fall back on the old reliable - "I don't know". You may feel foolish for saying it, but at least you won't end up negotiating a bad deal.
Dr. Jim Anderson, President of The Accidental Negotiator has spent over 20 successful years negotiating sales of all sizes. Dr. Anderson offers you his insights on how to develop your negotiating skills so that you can approach sales negotiations with more confidence that you'll be able close more deals and close them faster!