Salesmanship doesn't come naturally to everyone but, even if you lack negotiation experience or confidence, there are some tips that can help you negotiate a better deal and make the sale. From preparing yourself and clarifying your objectives to realising the importance of listening, learn how to improve your negotiating skills.
- Before the negotiation begins, prepare yourself; aim to appear keen to do the deal, but not desperate.
- Clarify your objectives (eg price, volume or a quick sale) and how important the deal is to you.
- Find out what the customer wants. What features or extras do they value and what are their priorities - price, service or delivery?
- Research the customer's position: how urgently they need your product, what they can afford and what alternatives the competition is offering.
- Assess the value of your offering to the customer: the benefits it offers, the problems it solves for them, the alternatives it replaces.
- Identify the strengths and weaknesses in your proposal and plan your strategy; aim to reach a deal which will suit the customer as well.
- Decide what could be negotiable; try to identify concessions which would cost you little but the customer would value.
- Consider the potential impact on other deals and other customers of any concessions you make.
- Clarify your terms and conditions from the start of the negotiation.
- Pitch your opening price high; explain how the value in what you are offering justifies the price.
- Agree what the negotiating points are.
- Concentrate on asking questions and listening; fend off questions aimed at discovering your own negotiating position.
- Test the strength of any concessions the customer asks for; ask whether they are deal-breakers, or what alternatives there are.
- Look for reciprocation on any concessions you make: for example, an increased order size in exchange for a discount.
- Summarise each point as it is agreed; shake hands on the deal when all the points have been covered and follow up with a written agreement.