2. Negotiation Skills: Table of content
1. Introduction
2. What is Negotiation? And Its Reasons..
3. Customer Attitude
4. Negotiating with your client Process
5. Negotiation Strategies
6. Common mistakes to be avoided in negotiation
7. References
4. What is
Negotiation?
Simply it is the process of
getting what you want
from another person.
The truth is we negotiate
every day, everyone in
their every day lives is a
negotiator.
5. Negotiations occur for several reasons:
• To convince people to take your side of an issue
• To agree on how to share or divide a limited resource
• To resolve a problem or dispute between the parties
• To sell a product or service
• Sales negotiation
6. Customer Attitudes
• A customer’s attitude toward your product or service generally falls
into one of four categories.....
• Objection
• Indifference
• Scepticism
• Acceptance
7. Customer Attitudes
Objection
• Customer displays opposition to your product.
Indifference
• Customer shows a lack of interest in your product because of no
perceived need for its benefits.
Scepticism
• Customer is interested in a particular benefit, but doubts whether your
product can really provide the benefit.
Acceptance
• Customer agrees with your benefits and has no negative feelings toward
your product.
9. Negotiating with your client Process
Before negotiation begins...
-Avoid negotiating unless you have had an opportunity to
fully present your products and services.
•-Understand the objections raised by your prospect and
identify what your prospect or customer’s main points of
interest may be based on these objections
•-Be prepared to illustrate how your offering will benefit
them and quantify the value they will get (if possible)
-Be prepared to be patient (which can lead to higher trust
between you and your prospect)
-Be confident in the value your product or service will
provide your prospect
-Be prepared to work toward a solution that works for
both you and your prospect
- Know in advance at what point the negotiation is no
longer beneficial to you and your organisation and be
prepared to walk away
10. Negotiating with your client Process
During negotiation...
-Use open ended questions to confirm your
understanding of their needs.
-Be prepared for tactical responses from
clients.
-Don’t rush to fill pauses with more talk – be
comfortable with moments of silence
-Listen
-Be prepared to make slight adjustments for
your client if possible
-Be prepared to work toward a solution that
works for both you and your prospect
- Try to identify small things you have both
agreed on to help develop positive momentum
– summarize these agreements periodically
11. Negotiating with your client Process
After the negotiation...
If you are able to make a sale…
-Summarize verbally and/or in writing the details
of what you and the client have agreed on.
-Thank the client for their time and reinforce the
purchase decision
-For your next negotiation, review the points that
seemed to help move the negotiation process
forward – study them, know them, use them
If you did not make a sale…
-Sincerely thank the client for their time
-Avoid appearing annoyed or disappointed
-Give the prospect an “out” or an opening for
them to come back to you/your organisation in
the future
13. Negotiation Strategies
• There are various well tested strategies that can be used to achieve
a win-win outcome…
1- Good Guy/Bad Guy:
The good guy / bad guy is an internationally used strategy. One
member of a team takes a hard line approach while other member is
friendly and easy to deal with.
When bad guy steps out for a few minutes, the good guy offers the
deal that under the circumstances seems too good to refuse. Bad
guys usually comprise spouses, lawyers etc.
14. Negotiation Strategies
• There are various well tested strategies that can
be used to achieve a win-win outcome…
• 2- Vinegar – Honey:
Start with the cheapest possible product or service
but one which still has benefits for the prospect.
15. Negotiation Strategies
• Keep in mind…
• Keep It Light
• You never want to let negotiations become too
tense. Always feel free to smile and inject some
humour in the conversation.
• Lightening up the mood can ingratiate you with your
client while also conveying your negotiating strength.
• If you do not appear to be taking the negotiation as a
do or die affair, your client may conclude that you are
ready to move on if s/he does not cooperate and
based on that s/he may decide to be cooperative.
• Wear a suitable suit.
16. Common mistakes to be avoided in
negotiation
• Inadequate preparation
• Use of intimidating behavior
• Impatience
• Loss of temper
• Talking too much, listening too little, and remaining indifferent to
body language.
• Arguing instead of influencing.