sales and negotiation
TRANSCRIPT
Sales & Negotiation
Negotiation (in 15 minutes)• Negotiation = any attempt to persuade or
influence a party to do something
• Good negotiators…
…build relationships
…creatively solve problems
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
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
2 types of negotiation
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
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
How do we use this in b2b sales?• Qualification
• Pricing/Discounting
• Closing
Qualification
or
Pricing
Pricing (Cont’d)
• Don’t avoid the challenge: pricing first isn’t
always a bad thing
• Be ambitious and reasonable
• Quoting vs. Persuading
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
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?”
70% of people are visual learners
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!