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Sales and Negotiation
- 2. Negotiation (in 15 minutes) • Negotiation = any attempt to persuade or influence a party to do something • Good negotiators… …build relationships …creatively solve problems
- 3. What do we assume about negotiation? • It’s common sense • It’s about winning • BATNA (Best Alternative to A Negotiated Agreement) = Deal or No Deal
- 5. The Reality • There are several frameworks • Getting to Yes – Roger Fisher • Research • It’s not about winning • It’s not just ‘talent’ • Incompatibility bias • Interest based • Misinformation • Anchoring • Good cop, bad cop
- 6. 2 types of negotiation
- 7. Do you care about outcomes or relationships? High Relationship Low Outcome ACCOMMODATING Lose to Win High Relationship High Outcome COLLABORATIVE Win - Win Low Relationship Low Outcome AVOIDING Lose - Lose Low Relationship High Outcome COMPETITIVE Win - Lose
- 8. Negotiation framework: Getting to Yes 1) Separate people from problems 2) Focus on interests not positions 3) Invent options for mutual gain 4) Insist on using objective criteria
- 9. How do we use this in b2b sales? • Qualification • Pricing/Discounting • Closing
- 10. Qualification or
- 11. Pricing
- 12. Pricing (Cont’d) • Don’t avoid the challenge: pricing first isn’t always a bad thing • Be ambitious and reasonable • Quoting vs. Persuading
- 13. Closing • Incompatibility bias • Expand the pie through trade offs • Find trades by learning the other party’s interests and preferences • Build trust and share information. • Ask questions – and Listen! • Give away a bit more information – “Let’s discuss how this will benefit us both.” • Make multiple offers simultaneously • Search for a post settlement-settlement – “Let’s revisit the contract in 3 months after you’re up and running.” • Avoid downplaying the concessions your counterpart makes
- 14. Closing (Cont’d) • BATNA • Manage probabilistic BATNAs – how likely is your WATNA? • Think through 2-level BATNAs – is it the person or the organization? • What about competitive auctions? • Clarify their interests and alternatives • Make multiple simultaneous offers • Look for a shut down move – “What would it take for us to get this done now?”
- 15. 70% of people are visual learners
- 16. In closing… 1) Separate people from problems 2) Focus on interests not positions 3) Invent options for mutual gain 4) Insist on using objective criteria AND… • Develop your BATNA • Don’t fall for tricks!