What do sales people think of when they think of negotiation? Do they think it's always about price - the buyer asking for a discount and the seller giving in? What phase of the buying process do they think negotiation occurs? Phase III - near the end of the sales cylce? However, when does negotiation really begin? At the very 1st contact between the buyer and the seller.

Negotiation means "coming to a mutual agreement", and it often involves some give and take, ideally resulting in a win/win. So, we suggest that sellers exercise the quid pro quo throught the sales cycle. If the buyer asks for something, the seller should ask for something in return. However, do sales people often give things away (information, time, demo, resources, proof of concepts, etc.) without asking for something in return? Why? They think that if they give the buyer everything they want, the buyer will like them and ultimately buy from them. Well, that's not always the case; however, let's say they are lucky enough that the buyer does want to buy from them. If they have been giving all along, without asking for anything in return, do you think the buyer is pretty sure they will get a discount? I don't think the buyer will think the sales person just learned the word "NO" (or grew a spine) that day.  

So, if the buyer asks for information, ask them for information. If they ask for a demo, ask for a meeting with the decision maker or for something else that will advance the sale. And so on. If they refuse, do you really want to invest your company's time and resources? Now, when the buyer decides to buy from you, even though he may still ask for a discount, he will know that he will have to give up something in return. One final note: in final negotiation, we suggest "don't give before getting". Get the buyer to agree to give you something first before you put your offer on the table. And try to think of something you can give other than a discount, which ultimately is "the gift that keeps on giving".

If you would like to learn more about how we help salespeople negotiate throughout the buying process to achieve a win/win, let us know when you have time for a 15 minute call. 

Debra Swann, Pat Dougherty, Chris Kavanagh

Principals, SDK Sales Alliance