Tips for Sales Negotiations
A sales negotiation is a strategic discussion (or series of discussions) between buyer and seller that ideally leads to a deal being closed. The main goal of the negotiation process is to reach an agreement that’s acceptable to everyone. Successful negotiation outcomes often start with the sales professional having and demonstrating the right mindset – one focused on building a long-term partnership whereby both parties (buyer and seller) benefit more by working together than if the partnership did not exist.
In his book Closing Time, Ron Hubsher highlights the 7 immutable laws of sales negotiation:
- You must be the buyer’s first choice
- Know the financial benefit your solution creates
- Anticipate getting squeezed on price
- Be proactive on budget and remove decision-making obstacles in advance
- Expand the pie with a set of non-monetary trade-ups
- Never give without getting
- Know your walk-away price and conditions
Vocabulary:
sales negotiation – (noun) a strategic conversation between a buyer and a seller to reach a mutually acceptable agreement, “The team spent weeks preparing for the final sales negotiation with their biggest client.”
strategic discussion – (noun) a purposeful conversation aimed at achieving specific long-term goals or plans, “The executives held a strategic discussion to plan the company’s expansion into Europe.”
leads to – (phrasal verb) results in or causes something to happen, “Consistent hard work usually leads to success in your career.”
acceptable to – (adjective phrase) satisfactory, welcome, or pleasing to a particular person or group, “We need to find a solution that is acceptable to both sides of the dispute.”
mindset – (noun) a person’s established set of attitudes, beliefs, or way of thinking, “Having a growth mindset helps you view mistakes as opportunities to learn.”
long-term partnership – (noun) a collaborative relationship between parties designed to last and remain mutually beneficial over a long period, “The two companies signed a deal to form a long-term partnership for technology sharing.”
immutable laws – (noun phrase) rules or principles that are absolute, unchangeable, and cannot be altered, “The scientist explained the immutable laws of physics that govern planetary motion.”
first choice – (noun phrase) the person or thing that is preferred above all other options, “She was the company’s first choice for the new managerial position.”
anticipate – (verb) to expect, foresee, or prepare for a future event before it happens, “We anticipate that demand for our product will double during the holidays.”
getting squeezed – (idiom/expression) being put under intense pressure, especially financially or to lower a price, “With rising supply costs, the small business is getting squeezed on its profit margins.”
proactive – (adjective) taking action to control a situation or solve a problem before it actually happens, rather than just reacting, “By being proactive, we resolved the software bug before any customers noticed.”
obstacles – (noun/plural) things that block one’s way, prevent progress, or make achieving a goal difficult, “The team worked hard to overcome all the obstacles during the project’s development.”
in advance – (idiom) ahead of time; before a particular event takes place, “Please let us know in advance if you are unable to attend the meeting.”
expand the pie – (idiom) to increase the total value or options available in a negotiation so that both sides can get more of what they want, “Instead of arguing over price, they decided to expand the pie by offering free shipping and extended warranties.”
trade-ups – (noun/plural) items or terms of greater value offered or exchanged in place of something else, “In negotiation, offering non-monetary trade-ups can help protect your profit margins.”
walk-away price – (noun phrase) the absolute limit or lowest price a seller will accept (or highest a buyer will pay) before ending the negotiation, “Before entering the meeting, the agent established her walk-away price so she wouldn’t agree to a bad deal.”