The year begins, and the pressure of targets falls on your shoulders like a slab.... gosh, after how hard it was to wrap up 2018 decently... now it turns out we're back with the scoreboard at "0", sound familiar?
Life itself is a constant negotiation; with your partner, with your children, with your friends, with your team, your bosses, your suppliers, but above all there's one negotiation that keeps you awake at night more than the others: with your clients. Negotiating with clients, small, large, difficult, pleasant or unpleasant... that's the one that can make the difference in how the year unfolds.
NOBODY TEACHES US HOW TO NEGOTIATE.
It's curious, but something as important as negotiating well is left to chance; as far as I know it's not included in university degrees, nor in the MBAs of business schools, although there are specific negotiation courses. Knowing how to read the negotiator in front of you, or having a set of behavioural rules, can change your professional life (and sometimes your personal one too...). In my opinion it should be a compulsory subject in all degrees and MBAs.
Proyecto Promociona: the executive programme for senior women managers created by the CEOE and delivered by ESADE Business School. It has been the only programme of those I have taken with a specific negotiation subject; it's an intense but truly strategic course in all its modules, and negotiation belonged to the IMPACT module. The session was delivered by Carolina Kindelán, associate professor at ESADE and founding partner of the company LIDERATU, it couldn't have a better name!
After the session with Carolina I saw the light... if I managed to improve my sales team's negotiating ability my life would be so much simpler and happier :).
The sales team
DAD, I WANT TO BE A SALESPERSON
this phrase isn't mine, it comes from the book "Vender como cracks" by V. Küppers, a very useful and entertaining book to get the team and ourselves thinking. Küppers doesn't go into negotiation, but he does develop the phases of the sale. What I like most about the book: his reflection, plain as day yet brilliant at the same time; "either you make them fall in love or you're cheap", smack right in the face!
Vender como cracks. Víctor Küppers.
when we think of negotiating, the word "price" automatically comes to mind, and although it's important, it's not the only thing.
In 2018 I used Küppers' books and techniques in the sessions with the sales team, and we ended the year quite decently... I can't complain, but as we all know, on 1 January 2019 the scoreboard goes back to 0, and unless you're an NGO you'd better think about new sales strategies.
My goal for 2019: Sell more and better.
How? By teaching the sales team and myself to negotiate.
The human team is usually the most expensive "resource" of the company, and sometimes we're so short-sighted that we don't realise the vital importance of training and motivating them; to improve in their day-to-day with the client and with all the stakeholders around them.
Note 1: even the best salesperson can contribute more if you teach them and give them the most important tools: TRAINING+CARE+COACHING.
The salesperson's day-to-day is tough... it's a very lonely profession, you have days when everything runs smoothly and you get home like a champion, but other days a sale, a client, a visit etc. has fallen through and the super saleswoman of the day before has become a dud.....
Exercise: Ask your salespeople what they base their negotiations on; most will give you the same answer:
"well, it depends how my month is going"
a) I haven't sold a penny: rock-bottom offer right off the bat...
b) I'm well ahead: they're going to pay whatever I tell them.
NOTE 2: it's better to have the team survey done by a third party, it's the best way to bring the truth out into the open.
As with everything, the only way to improve, to learn, is with methodology, with techniques, with tricks, with examples and exercises from our own day-to-day, and this must of course be done with a professional.
LIDERATU
Carolina Kindelán led our first sales meeting of 2019, and that was precisely the title "lead yourself". She made us do an analytical exercise of how we were working, the variables we have to negotiate and win clients, but above all she taught us something very important:
"Generosity breeds greed", what a great truth...
"Don't buy your own comfort"
"Negotiation happens in the other person's head"
"The EGO: Extinguishes Great Opportunities"
great negotiation quotes.
The 5 keys to negotiating successfully:
1.- Analyse the type of negotiation:
a) A one-off/cold sale: then we're talking about a COMPETITIVE negotiation
b) A sustained sale: then we're talking about a WIN/WIN agreement
The second one, the COLLABORATIVE one, the win win, is where most of us want to be, it's a "consultative" sale, that is, we want an agreement that lasts a long time, we want captive clients, loyal to the brand and to ourselves. It's the ideal situation!
What happens when you want to be at the "win win" table and your counterpart is a business "shark" who understands nothing about consultative selling, who understands the "here and now", this negotiation I win... well, you have three options:
a) I'm very interested, come what may... I play along even if I come out without my trousers... at least my competitor won't get in.
b) it's not worth it for me, they're going to take even the trousers off me, I withdraw from the negotiation.
c) I'm going to move my counterpart from the competitive table to the collaborative one, it will take me time and effort.
Obviously option c is the best; leading the counterpart along by changing their table: from the competitive to the collaborative one. This option requires:
- methodology
- patience
- all the erotic capital in the world...:)
To be skilful and identify the variables and options of a negotiation, you need method and training.
2.- Prepare your strategy: Plan
This seems very obvious, but most of us just wing it... let's see how this one turns out today. WRONG!
Plan, identify your limits and variables:
Your limits: the maximum and the minimum you can reach, but don't think, well let's split it down the middle and that way we both win... NO, you fool! Start the negotiation very close to the upper limit; if your negotiator accepts the proposal at the first attempt, you've set the bar too low.... that's why the best thing is always to start by ASKING AND LISTENING, hold back the chatter because it can only make you lose money.
Identify the other party's pressures:
Maybe they need it NOW, there you have a golden opportunity.
Maybe their trusted supplier has let them down and it's your chance to show that you offer better quality/price/service.
Or they need a large supplier who can give them better payment terms since a small one can't.
Identify your negotiation variables:
"Remember, negotiation happens in the other person's head, they may be as anxious as you or more. So hold your horses, don't make yourself small, and above all negotiate from their head and not from yours."
Carolina Kindelán, LIDERATU
Price is a negotiation variable, but it's not the only one, for example:
LOW COST high value: there's surely something your clients value enormously and that doesn't cost you much. In my case, for example, my clients greatly value me helping them from a strategic point of view, that is, giving them my opinion from a "consultative" point of view; does it cost me anything? not at all; what do I do when they ask me for it? I explain to them roughly the business volume they need to reach so that I can carry out that highly strategic work.
Delivery time, payment method, strategic advice, keeping your client trained and informed, giving them good after-sales technical support etc. etc.; there are many variables you can come up with besides PRICE.
HIGH COST high value: PRICE has a very high cost and a very high VALUE. €5 is the same for you as for your counterpart.
brains synchronise during a negotiation .
3.- Assess the Balance of power
A) your client needs you and you both know it...
It's the ideal situation; if you have a very special product, it's clear that the balance of power is tilted towards you, but careful, don't get carried away; it's fine for them to pay a high price, but treat your client well, control your EGO, be humble... better to be taken for a fool if you know you're winning the game :)
b) your client has plenty of other options and you both know it....
A very large client who has other alternatives equal or very similar to yours may have more power than you; on these occasions your cultural, social and erotic capital is key. (read the previous post:))
5.- Manage the EGO: Extinguishes Great Opportunities
Negotiation must not be personal, the other party defends their interests and you yours; at the negotiation table there are no good guys and bad guys.
But you do have to control the EGO, it can play a nasty trick on you, composure and cool blood. If you're negotiating with someone who has become your friend, try to leave the friendship for afterwards, in the meeting room put on the "uniform" of negotiating, otherwise you're done for.. (mind you, it's very difficult..)
If they've made you a rock-bottom offer and you're carrying a huge anger (pardon the expression).... don't let yourself be carried away by your inner rage, it can play a nasty trick on you.. HOLD ON, if you're very interested, try to lead your counterpart to the win win table, with a lot of patience and skill!
Conversely, if you've won a huge account at a price much higher than your expectations, control yourself too! don't go high-fiving your colleague, don't you dare open your mouth before you're well away; negotiations aren't closed until they're signed, and excessive euphoria from one of the parties can be read as "oh... maybe I've been had?", poker face above all...
Better to be taken for a fool and get what you want :)
Remember:
- Negotiating is reaching an agreement (someone should explain this to politicians...)
- If you want a kitten, ask for a lion...
- Plan your negotiation, think before you get to the meeting room about what the other party's pressures are, control your ego, be stingy...
BUT above all NEGOTIATE!
I'll never leave negotiations to chance again! :)
THANK YOU to Carolina Kindelán of LIDERATU for her fantastic sessions, advice and involvement in our professional and personal growth.
Did you find it useful?
What topics interest you?
Leave us your comments :)
Cargando comentarios...