Yes.
It’s all of the above and more. Much more, really.
In the context of the sales profession, most people think of negotiation as just another sales skill that needs to be mastered on the way to everyday success in business. But can the skill, art and science of negotiation ever really be mastered? Probably not. But at the very least, a knack for effective negotiation can be learned, improved upon, developed, reinforced and ultimately, honed into a sales skill that will yield spectacular competitive advantages in difficult business environments. There are literally hundreds of nuances, strategies and tactics associated with effective negotiation. Here a few essential ones to get you started in the right direction:
Balance of Power
Never assume that the buyer in a negotiation has all the power. Savvy salespeople recognize that sellers often have just as much (or more) power in a negotiation as the buyer. For example, if the seller manages to find out that the buyer needs his product in a hurry, he can use that fact to his advantage when price, freight terms, quantity discounts and other elements of the sale are negotiated.
Aspirations
Experienced salespeople, when asked to give an approximate price for their goods or services, know that it’s better to quote a little higher price than they expect to get for their offerings. But there’s a way to take that tactic a step further, by quoting an extremely high price for the purpose of reducing the aspirations (or hopes) of the buyer for getting a good deal. Once the bar is set so high, it becomes much easier to realize a better than average margin when negotiations are concluded, because the buyer’s aspirations were controlled by the seller’s sales skill and negotiating prowess.
Silence
Silence is sometimes golden indeed. There is a natural human desire to keep conversation flowing, and knowledgeable salespeople will sometimes simply go silent at a crucial point in the negotiation for that very reason. This is sometimes very effective after quoting a price; often, the seller using this negotiation tactic will simply stop talking after throwing the number out there. And they won’t break the silence because they know the buyer eventually will. When she does, her discomfort about the silence will often lead to the seller getting a higher margin or at a minimum, significant information that might not otherwise have been divulged. Of course, there are many, many more tactics and situations where effective negotiating methods can be employed to the salesperson’s distinct advantage. Stay tuned to bestsalesmantraining.com for more of our negotiation skills series.
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