Q.
Dan, I am a strategic, key account sales rep responsible for three of our largest clients.
I frequently have to negotiate on behalf of my company for major deals. Next month we have a negotiation meeting for a very large opportunity with one of my accounts.
Can you please provide any ideas that may help me?
A. Zach, thanks for your great question.
I have written about negotiation best practices in a prior TTS Newsletter (see The Ten Commandments of Negotiation), so I won't review them here.
I would like to share a true story with you which I believe will help you. I call it the story of the Greatest Negotiation Best Practice of All Time.
Let's turn back the clock a few years. It was August of 1982, and I had just graduated and signed my offer letter with GE. It was now time for me to buy my first car. Up until this point I had been fortunate to borrow a car that belonged to my family.
I had my heart set on a used Toyota Corolla SR-5, pictured here.
Not exactly a Tesla Model S but back then it was pretty sweet.
I found a Toyota dealership in Mequon, WI, that had exactly what I wanted. It was one year old, silver and had low miles. Perfect!
I rushed to the dealership as quickly as I could. I met one of the dealership car salesmen, who we will call "Jeff" (I don't remember his name--it has been 34 years!). I do remember that he was about 40 years old, had thinning hair and looked professional. I also remember to this day exactly how he interacted with me.
I had my defenses up because I had heard how car salesmen can take advantage of you. I thought I knew plenty about negotiation as a newly minted MBA, however. I was confident that any money left on the negotiation table would be mine and NOT his.
After exchanging pleasantries and doing a bit of discovery, Jeff allowed me to take a test drive. The car was beautiful, ran like a champ and was clean as an operating room outside and inside.
Then came the time to negotiate.
Jeff directed me to his office. I sat down and said, "I would like to buy this car IF you can get me a good price."
Jeff responded, "l'll do my best. I only win if you walk out of here as the new owner of that car."
Having done my blue book research, I had a good idea of what the card should sell for. The sticker was $4,500. I thought if I could get it for anything under $4,000 I would be getting a deal.
I told Jeff that I would like to offer $3,500.
Now, here is where Jeff made The Greatest Negotiation Move of All Time.
But first, let talk about how you would expect a typical sales rep would respond. I'll offer a few ideas:
- "No, Dan, there is no way we can let the car go for that amount."
- "That won't work."
- "You're not being reasonable."
- Laughter.
- "We will not have any trouble selling this car at the sticker. You better raise your offer."
- "That is just way too low. You will have to raise your offer."
Well, Jeff would have none of those typical loser, average-sales rep responses. Jeff's response threw me for a loop when he said, "Dan, that could be too high. Why don't we offer $3,400 and see what my manager says." WHAT AN UNBELIEVABLY BRILLIANT RESPONSE!!!
I am often asked how long it takes to gain trust. The answer is seconds if done correctly. Jeff had my trust after one simple sentence. He was no longer my nemesis. He was my trusted adviser.
Trust is achieved when you believe that the other person has your best interests in mind. Jeff shared his insight and expertise as to exactly how I should negotiate to get the best deal.
We eventually shook hands and closed the deal. I don't even remember what I ended up paying for the car, but I distinctly remember how I felt. It was exhilarating and reassuring to feel well-represented. I had Jeff as my trusted adviser, and drove the car home as a happy young man.
Zach, take the long-term approach with your strategic account negotiations. Help your accounts negotiate a fair agreement with your company. Remember the Greatest Negotiation Best Practice of all Time: Always work to earn TRUST with your client.
All the best,
