building successful sales negotiation...

Introduces and defines the (XX) Sales

Model

BUILDING SUCCESSFUL SALES NEGOTIATION SKILLS PARTICIPANT’S GUIDE

Building Successful Sales Negotiation Skills Participant’s Guide

© 1999 Robert Half International Inc. all rights reserved. This material is the property of Robert Half International Inc. (Rev. 10/2899) 1

SALES NEGOTIATION PRE-SESSION QUESTIONNAIRE

Complete questionnaire before attending “Building Successful Sales Negotiation Skills” training.

1. Who would you nominate as a “great negotiator?” Why, what makes them great? _________________________________________________________________________________

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2. What is your definition of a sales negotiation? _________________________________________________________________________________

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3. With whom do you negotiate, and what about? (On the job, in the office, on the phone, at home, at the store, with your friends or family?)

With whom? About what?

4. What are the resources you have available to you when you conduct your negotiations? _________________________________________________________________________________

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5. How do you decide when to negotiate? _________________________________________________________________________________

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6. How do you know you have negotiated successfully? _________________________________________________________________________________

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7. List a few of the problems or obstacles you have encountered in your own negotiations? _________________________________________________________________________________

_________________________________________________________________________________ Bring examples of sales negotiations you have been involved in and feel comfortable discussing during the seminar. You may wish to make a few notes. Please bring this Pre-work book to the seminar.



INTRODUCTION

The (XX) Sales Model included the elements used in the sales process, elements to enable you to effectively complete your sale. Success in selling and the ability to succeed in negotiating are intertwined. The stronger your mastery of your negotiating skills, the more effective you will be at selling our service. The more skillfully you negotiate, the greater your chances of closing your sales and retaining your clients and candidates for life.

Success in selling depends on your ability to use client focused selling skills. In client focused selling, you: • Probe to uncover and understand customer needs. • Develop long-lasting relationships to build customer loyalty.

• Provide consultative services that deliver business solutions. • Close to gain client or candidate commitment.

The transition from probing to closing is not always smooth. Customers may perceive shortcomings in what you offer and raise objections. To close and gain their agreement, you have to overcome their objections. Objections that can’t be overcome may need to be negotiated.

“Building Successful Negotiation Skills” will give you the knowledge and skills you need to gain client or candidate agreement through negotiation when you cannot simply overcome their objections.

This program will teach you the what, when, and how of “sales negotiations,” so you will be able to close the sale without "giving away the store.” After completing the program you will be better able to negotiate with your clients or candidates to reach agreements that please your client or candidate, your division, RHI, and yourself.

The objectives for completing this program are to be able to: • Complete successful negotiations in the best interest of (XX) while continuing to

maintain an effective long-term relationship with the client or candidate. • Describe the three phases in the Negotiation Process.

• Effectively identify the issues to be negotiated during a sales contact. • Demonstrate the ability to overcome challenges during a negotiation and achieve

collaborative solutions with the client. We are going to spend some time defining “sales negotiations,” which we see as “great negotiators,” and what makes them great. We’ll discuss why and when we need to negotiate, the types of people we negotiate with, and how we can deal with them.



NEGOTIATION OUTCOMES

Win–Win, where both parties come to an agreement that benefits each of them and brings the client/candidate back for more business.

Lose–Win, where one party gains what they wanted and the other does not feel they got what they wanted.

Lose–Lose, where each party does not feel they gained what they needed or wanted from the negotiation, or because it ended without an agreement or with poor feelings toward each other.



(XX) SALES MODEL

NOTES:



HANDLING OBJECTIONS

NOTES:



Statement:

Objection:

NOTES:



CLIENT/CANDIDATE FEARS

• Fear of

• Fear of

• Fear of

• Fear of

• Fear of



(XX) SALES MODEL AND NEGOTIATIONS PROCESS

NOTES:



GREAT NEGOTIATORS

WHAT MAKES A GREAT NEGOTIATOR



SALES NEGOTIATION

AGREEMENT

• Price:

• Deliverables:

• Terms and Conditions:



CRITICAL FACTORS IN GAINING AGREEMENT

• Mutual Interest:

• Differences:

• Sales Negotiation:

Sales negotiation is the process by which…



WHOM DO WE NEGOTIATE WITH

With whom? About what?

NOTES:



NEGOTIATIONS IN THE OFFICE

• Clients:

• Candidates:

• Co-workers:

• Managers:



NEGOTIATOR’S SUPPORT ORGANIZATION

NOTES:



WHEN SHOULD NEGOTIATION BEGIN?

• 1)

• 2)

• 3)

• 4)



CROSSING THE BRIDGE TO NEGOIATION

• Establish your intent …

• Review what is of mutual interest …

• Identify what differences …

• Review your quote …



CROSSING THE BRIDGE TO NEGOIATION • Write your transition statement.



NEGOTIATION PROCESS

NOTES:



• 1) Knowledge: -

• 2) Commonalities:

• 3) Alternatives:

• List Preparation activities:



COST AND VALUE OF NEGOTIABLE ITEMS

Item Client or Candidate Salesperson Organization

NOTES:



• 1) Realize that multiple interests are involved -

• 2) Look towards solutions -

• 3) Focus on benefits -

NOTES:



MODES OF CONFLICT RESOLUTION

• 1) ___________________________________________________________________________________________________

• 2) ___________________________________________________________________________________________________

• 3) ___________________________________________________________________________________________________

• 4) _______________________________________________________________________

• 5) ___________________________________________________________________________________________________

NOTES:



NEGOTIATOR STYLES

• 1) ___________________________________________________________________________________________________

• 2) ___________________________________________________________________________________________________

• 3) ___________________________________________________________________________________________________

• 4) ___________________________________________________________________________________________________

• 5) ___________________________________________________________________________________________________

• 6) ___________________________________________________________________________________________________

• 7) ___________________________________________________________________________________________________



NOTES FOR ACTIVITIES/ROLE-PLAYS:



PHONE NEGOTIATIONS

Negotiation on the phone has unique characteristics that you need to take into account. With 80% to 90% of your business, being done on the phone this information can be invaluable. You may negotiate with the same people you negotiate with in person but the phone presents some advantages and obstacles that you can plan for to be an effective negotiator.

Potential misunderstandings may arise.

• On the phone, you will not get visual feedback from the other party.

• You need to be more aware of the voice, tone and temperament.

• Use questions to clarify your understanding of the messages.

• Use your active listening and questioning skills to check for understanding

Phone negotiations are quick.

• Time is important to both parties.

• Because there is little invested in a phone conversation, such as travel, time, and expenses.

• The conversation will not last as long as an in-person contact.

• Plan your negotiation accordingly.

• Don’t try to negotiate a complex agreement on the phone.

• If the negotiation can be done quickly, the phone may be a very effective method.

It’s easier to say no on the phone.

• The phone makes it easier to say no.

• When the same question is posed to you in person it may not be as easy to say no. If you are asked to donate $10 dollars on the phone you can easily say no. However, when the person standing there in front of you ask for the same $10 dollars, the “no” is not as easy to say.

• Structure your negotiations accordingly. Don’t pose questions that make it easy for the client to say “no.”



Competition can escalate on the phone.

• Given the previous characteristics of phone negotiations it may be apparent that there will not be time to present your entire case, proposal or offer.

• This creates a situation where the Win-Lose behavior prospers.

• Knowing the party you will be negotiating with will help keep this in check.

• It may be necessary to meet in-person with them before you can effectively negotiate with them on the phone.

• This will help achieve a mutual understanding and resolve some of your differences before you start your phone negotiation.

Risk is high.

• Phone negotiations are quick, “no” comes easy, and competition is heightened. This creates a greater risk with negotiating on the phone. Be prepared for your negotiations on the phone.

• Gaining the trust and respect of your client/candidate will pay off.

• Sometimes, if the negotiation is not getting any closer to an agreement, it may be time to stop, regroup or start over at another time.



• 1) Evaluate the proposed agreement and make a decision -

• 2) Reinforce the commitment after agreement is reached -

NOTES:



KEY POINTS

Preparing: Points that need to be focused on when preparing are: • Knowledge • Commonalties • Alternatives

Conducting: Points that need to be focused on during preparation are: • Realize that multiple interests are involved • Look toward solutions • Focus on the benefits

Agreeing: Points that need to be focused on in agreeing are: • Evaluate the proposed agreement and make a decision • Reinforce the commitment after agreement is reached

We defined how we can achieve a win in a sales negotiation.

• A Win-Win is the best outcome. • Achieving a successful sales negotiation is a win for the client, the salesperson and the

organization. • In a successful negotiation, all the customer's "musts" are satisfied along with as many

"would likes" as are necessary to gain agreement -- without resulting in a "lose" for the organization or AE/SM.

NOTES:



NEGOTIATON CHALLENGES

Challenges that are encountered in Negotiation:



NEGOTIATON CHECKLIST

Plan a concrete strategy for the negotiation. Be clear on what is important to you.

Separate the people from the problem.

Emphasize win-win solutions.

Focus on interest, not positions.

Create options for mutual gain. Generate a variety of possibilities before deciding on what to do.

Aim for an outcome based on some objective standard.

Consider the other party’s situation.

Know your BATNA (Best Alternative to a Negotiated Agreement).

Pay a lot of attention to the flow of negotiation.

Take the intangibles into account.

Use active listening skills.

NOTES:



NOTESFOR ACTIVITIES/ROLE-PLAYS:



ROLE-PLAY DEBRIEFING QUESTIONS OBSERVER ROLE:

1. What were the differences that needed to be negotiated?

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2. What were the mutual interests that did not need to be negotiated?

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3. Did the AE/SM commit any negotiation ‘crimes’? (check list)

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4. Did the AE/SM complete the Sales Negotiation Process effectively?

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5. Did the AE/SM miss any points in their negotiation? (check list)

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6. What did the AE/SM give away in the negotiation? Cost? Effect on organization or other divisions? Was it given away unnecessarily?

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7. What did the client/candidate give away in the negotiation?

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ROLE-PLAY DEBRIEFING QUESTIONS AE/SM ROLE:


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ROLE-PLAY DEBRIEFING QUESTIONS CLIENT ROLE:


_________________________________________________________________________________

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5. Did you feel satisfied with the agreement arrived at in the negotiation?

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6. Will you do business with the AE/SM again?

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WRAP-UP:



NEGOTIATION WORKSHEET

1. Who are the parties that need to play a part in the negotiation?

• Internal: ______________________________________________________________________

• External: ______________________________________________________________________

2. What do I want from my client? _______________________________________________________

_________________________________________________________________________________

3. What does the client want from me? ___________________________________________________

_________________________________________________________________________________

4. What information needs to be exchanged or obtained?

• Information you need: ___________________________________________________________

_______________________________________________________________________________

• Information they need: ___________________________________________________________

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5. What are negotiation objectives?

• Your objective: _________________________________________________________________

_______________________________________________________________________________

• Their objective: ________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

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6. What are the potential areas of conflict?

a. _______________________________________________________________________________

b. _______________________________________________________________________________

c. _______________________________________________________________________________

d. _______________________________________________________________________________

7. What win-win solution can be proposed?

_________________________________________________________________________________

_________________________________________________________________________________

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NOTES:

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