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I delivered this talk at a networking meeting recently and it went down very well, so I thought others might be interested too.

Six Most Common Negotiating Mistakes

  1. Thinking that money is the real issue

Buyers want you to believe its all about price and that you are offering a commodity, so you believe they have lots of options to choose from.

As sellers we need to build value and uniqueness to move us away from being perceived as a commodity. To do this we need to understand what value is to our buyers, which leads us on to Number 2.

2.    Talking too much

In negotiating information is power. You are in a stronger position if you know your prospect really well, what value means to them and what they are trying to accomplish. So we have to gather information (and don’t assume you know the answers), which means we have to ask questions, shut up and listen to the answers.

3.    Losing control of your emotions

When you are emotionally involved your higher brain functions shut down, you react rather than respond. Reacting is either fight or flight (wimpy or dominating) – neither of these is effective, instead we need to remain collaborative to be effective

You want to be a third party to your own negotiation – imagine you are looking on at the buyer and the seller as an interested observer.  Be emotionally detached, don’t focus on the outcome (look at all this money I could make!), focus only on the process and sticking to your plan. 

4.    Making unilateral concessions (free gifts)

Never give something away without getting something of greater or equal value in return. In a negotiation you must be prepared to concede something, but that doesn’t mean walking away with less. Instead get something back using a conditional offer - if I were to do x, would you do y?

 5.    Being unprepared

To avoid number 4 you need to have a plan – if you don’t have one you risk defaulting to their plan. Plan in advance what concessions you would be willing to make and what you would expect in return. 

Also think through what the other party’s options are. What would their walk-away points be?  If they have a viable alternative option your position is weak (but at least you know in advance), but if they don’t have other options you are in a mentally stronger position.

6.    Weak pre-negotiation position

Belief: how strong is your conviction that the deal you are bringing to the table represents real value to the buyers? If you have any doubts that will come across in your tonality, body language and the words that you use

Time: Either an asset or a liability. Whoever has the most pressing deadline is at a disadvantage

Need: Person with the greatest need is at a disadvantage
What can you do to limit your need vulnerability (have a full pipeline) or increase your need leverage (make your solution unique or uniquely your understand prospect's situation and how to develop the best solution for them)

 

Caroline Robinson runs Sandler Training based in Cambridge.  Sandler Training is a world leader in providing innovative sales, sales management training and consulting for small to medium-sized businesses as well as corporate training for FTSE 100.  Caroline brings a wealth of experience in sales and business development and offers new ideas and practical training, support and advice – that delivers meaningful ROI to businesses who are committed to growth. 

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