One of the most
important aspects of B2B sales negotiation is to focus on coming up with your
list of concessions and to use that list to get your customer to grant a
concession in return. It’s your list that defines what you’re willing to give your
customer in return for them granting a request of your own. To remind yourself
of your list, you must come to remember the most important question in
negotiation;“What if?”
I am always trying to simplify negotiation for my customers. Some sales and procurement professionals are naturals and it can be quite enjoyable to watch two seasoned professionals negotiate a deal. However, for others, it isn’t so simple. For some, it becomes a constant struggle and one that leads to them granting too many customer requests and not securing enough in return. Ultimately, negotiation is between two parties; both must benefit in some form once an agreement is reached.
Think back to those people who are gifted in negotiation. Why are they successful at what they do? Most of the time it’s because they are willing to identify what they want and most importantly, they're willing to ask for it. They aren’t afraid of how their request will be received. They simply ask, wait for a response and then move forward. They aren’t arrogant. They aren’t confrontational and they never push too hard, unless of course they have room to manoeuvre. Ultimately, they are constantly asking questions that can best be summarized under the general category of “what if”.
The video above is from: Sales Negotiation: Defend Price, Customer Scare Tactics & Managing Concessions
- What if we give the customer a better price – will they give us more volume in return?
- What if we agree to include delivery – will the customer agree to a contractual agreement on supply?
- What if they ask for samples – will we be able to secure an immediate order upon approval of these samples?
- What if they aren’t willing to commit to an order – should we push for a date on when they’ll make a decision?
- What if they don’t agree to make us their primary vendor – should we then ask for a confirmed order on other products?
When you stop and think about success in negotiation, it really does come down to one party’s willingness to ask for a concession. Part of that process includes going back and forth on matching requests of equal value. Again, there are two parties involved in this. Your company has as much right to secure a need as your customer does.
When I work with my customers, I am constantly getting them to ask themselves “what if”. When a customer makes a request, it’s the first thing they should think of. When a customer uses a veiled threat, or a stall tactic, it’s the first defense they should use. The idea isn’t to try and dissuade customers from making a concession request. It isn’t to get them to abandon their request, or for you to refuse that request outright. Instead, it’s to make sure that you are constantly thinking of outcomes, constantly thinking of different approaches and constantly asking yourself what you can get in return for giving up something your customer desperately needs. When you grant that request, tie it to a request of your own.
To read more about coming up with a list of concessions, please refer to B2B Negotiation: Preparing Your List of Concessions
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