Regardless of whether you’re the sales person trying to close that big deal, or the procurement professional trying to save your company money, there are bound to be times in a negotiation when your emotions get the best of you. Controlling emotions and maintaining focus in a B2B sales negotiation is never an easy thing to do. However, it is an essential aspect of protecting your interests and ensuring the negotiation is a successful one.
Who am I Negotiating With?
Bottom line, you are always negotiating with another party. However, your thoughts immediately move to your own goals and objectives. As a salesperson, you’re being tasked with the responsibility of maintaining a high gross profit on the sale, and ultimately, to secure the order at a price that makes sense for your business. As a procurement professional, you’re being asked to drive down costs, get extended payment terms and work out the best deal possible. These objectives couldn’t be more contradictory.
Rarely do we take the time to consider what the other side is going through. Rarely do we consider their stress and their situation and what impact it has on the negotiation. Instead, we focus in on our own objectives and consequently, ignore the keys to making the negotiation a successful one.
When it comes to B2B sales negotiation, it’s essential to understand the other party’s stress. We all have our instructions, or objectives and a long list of items we want to attain within the negotiation. However, the other side has a list of their own. They also have a number of items they want to secure.
Unfortunately, when two sides are only concerned with their own priorities, rarely will either side come together. Instead, both parties will stand firm to their own needs and rarely venture forward with offering a concession to move the process along. This is when one side invariably loses control and uses threats. Unfortunately, these threats are rarely followed through on. In the end, they do nothing other than to expose the urgency of our needs. So, what’s the solution?
Anticipate the Other Party’s Stress
Before you enter you next negotiation, take the time to write down a list of what you think the other party has to secure. You’ve got your own list of priorities, but what about the other party’s priorities? Have you taken the time to ask yourself what they are likely to ask for, what they need and ultimately, what they must get in order to feel they’ve succeeded? When you take the time to do this exercise, you’ll likely find that there are a number of concessions you’ll be able to offer to give the other side a win. These concessions will be minor to you, but not for the other side. In addition, by anticipating the other party’s stress, you’ll be better prepared when the negotiations veer off course.
Within B2B sales negotiation, there are guaranteed to be time when you lose focus. It happens. However, it’s important to note that when it does happen, it immediately exposes your weaknesses and gives the other side insight into the importance of your needs. They may then choose to hold firm and decide not to offer a concession to you, until of course, you offer a bigger one in return.
Remember, both parties have their instructions. Both parties are being asked to accomplish a given set of criteria within the negotiation. The party that is able to anticipate the other’s needs, is always best able to subtly take control of the negotiation and move it to a successful conclusion.
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