The Art of Negotiation

“One of the best ways to persuade others is by listening to them.” - Dean Rusk

In my experience, many people do not feel comfortable when it comes to Negotiation. Sales people feel awkward at asking for a better deal and buyers, often working to a budget, do not want to be seen as begging or showing their cards too early.

Negotiation is necessary within business. Both the buyer and the seller want to feel like they have achieved a good deal and solved the need they had. It has to feel beneficial for both parties as if it is one sided it will not foster a mutual understanding and longterm relationship.

So what is it?

Negotiation in sales is the process by which a salesperson and a potential customer engage in discussions to reach an agreement on terms that satisfy both parties. In sales, this typically involves negotiating the price, features, delivery terms, or other aspects of a product or service. A successful negotiation results in a sale that benefits both the seller and the buyer, ensuring customer satisfaction and business profitability. Sales negotiation is not just about securing a deal but about creating lasting relationships that encourage repeat business and customer loyalty.

The importance of negotiation in sales cannot be overstated. In a competitive market, customers are often presented with multiple options, and sales negotiations can be the deciding factor in whether a deal is closed. For the salesperson, negotiation is an opportunity to tailor an offering to the customer’s specific needs, increasing the chances of closing the sale. For the buyer, negotiation allows for a sense of control in getting the best value for their money. Effective negotiation in sales helps ensure that both parties feel that they have achieved a fair and beneficial agreement, paving the way for a successful transaction and future business opportunities.

The art of negotiation is balancing customer satisfaction with the sales goals of the organization.

So here are my top tips for being more successful when it comes to negotiating. The most important thing is just have a go, and by following these tips, you will have more successful outcomes and in the long-run lower costs and more sales.

✅ Do Your Research: Know the market value of the product or service you’re negotiating for. It’s really important to know your competition prices when you are the seller. That way you understand the market value and wont be tempted by too low an offer

✅ Know Your Limits and have a Plan: Know what percentage reduction you are wanting or can

accept before you start

✅ Start Low, But Reasonable: When you make your initial offer, start lower than what you’re willing to pay, but don’t go too low. If you are the seller, do the opposite - aim high and work backwards from that

✅ Build Rapport: A happy friendly approach will always get you a better reduction. Work on a win-win for both parties

✅ Use Silence and Patience: Don’t rush to fill silence after presenting your offer or a counteroffer.

✅ Don’t Offend the Seller or Buyer (or talk over them): If you do, the seller will keep the price high and the buyer will likely walk away

✅ Be Ready to Walk Away: Sometimes, the best way to negotiate is to be prepared to leave if the price doesn’t meet your expectations. This can sometimes encourage the other party to make a better offer just to keep the sale and if they are the buyer and need it, they will often return

In conclusion, negotiation is an essential skill in sales that can make or break a deal. By preparing thoroughly, listening actively, creating collaborative solutions, managing emotions, and effectively closing deals, salespeople can enhance their chances of success. Effective negotiation not only leads to more sales but also helps in building strong customer relationships and ensuring long-term business success.