In the world of selling, when do the sales calls end and negotiating begin? If you answered, "When the prospect says ‘we choose your solution,'" then you fell for my trick question. Actually, negotiating begins with the very first sales contact. In this day of savvy prospects and highly competitive markets, many salespeople – no matter how professional – fall prey to selling mistakes that lead to a weak negotiating position. A weak negotiating position makes it very difficult to achieve a true win/win scenario with your clients. It also squeezes profit margins.
Here are the seven most common "sins," or negotiating mistakes, and how to avoid them:
- Failing to recognize and deal effectively with a "player." A "player" is a prospect who studies negotiating techniques, practices them, and takes pride in using them. A true player isn't out to make the seller lose, but actually enjoys the negotiating give/take and wants a win/win end game. If you are up against a player and don't recognize it, you will lose the opportunity to make him or her feel good about themselves if you don't acknowledge their prowess and skill. They will then lose their desire for a win/win and settle for bragging rights when they eat your lunch!
- Weak pre-negotiation positioning. Many salespeople complain that prospects are only interested in the lowest price. As soon as I hear that kind of talk, I know that this person has not mastered the art of true selling, which is the ability to establish a value proposition in the prospect's eyes. They find themselves in a commodity scenario where the low price really will win, and they did it to themselves. It is a self-fulfilling prophecy. Real sales professionals ask the questions that make the prospect realize a valuable solution when it is presented to them.
- Making unilateral concessions. Unilateral concessions are when the selling party offers concessions when none were requested or necessary. It's like the late-night cable television commercial that says "but wait, there's more! Order today and we'll include this 48-piece wrench set as well!" Usually it comes about because of a prior successful tactic of throwing in some extras, and so it soon becomes standard operating procedure to keep throwing in those same extras, even when unnecessary. A "player" will start their negotiating position after the unilateral concessions are offered, and it becomes very difficult for the selling party to get credit for those concessions.
- Talking too much. In negotiation, information is power. You are in a better position if you know your prospect's objectives and challenges well. The more you know – their deadlines, internal politics, etc. – the easier to craft that win/win relationship. How do you gain that information, from talking or from listening? When have you experienced someone using your own words against you? Enough said.
- Losing control of your emotions. Doctors do not operate on their own family members because when you are emotionally involved, your highest order brain functions shut down. You react instead of respond. Reacting under pressure usually means either fight or flight, either wimpy or domineering. Either way you will lose that edge that is so important to professional deal-making. Instead, you have to convince yourself that you would walk away from this deal if it made sense to do so. Most of the time that is exactly what the prospect is thinking.
- Entering into a negotiation unprepared. The more prepared you are, the more confident you will be. The more confident you are, the more effective you will be under pressure. Do your homework and be prepared.
- Thinking that price is the real issue. Price is never the issue. If the prospect says that your price is too high and means it, then it is your fault. You failed to help the prospect discover that you – and only you – can get them past their challenges and realize their goals. In other words, you didn't do any real selling, you were just a walking brochure!
Avoid these seven deadly sins, and find yourself in that rewarding place called professional selling.
Al Simon is president of Simon, Inc., an authorized licensee of the Sandler Sales Institute. He can be reached at www.SimonSaysSell.net.
