None of us want to admit that we have  been out-negotiated!  But it happens often.  We know that you need the sale, but this very important post will discuss an important tactic, and reduce the chances that you get the wrong end of the deal.  You are your company’s negotiator, and your reputation is at stake.  Be prepared!

________________________________

Your prospective customer calls you to meet in order to discuss your product and whether your organizations can do business.  She sounds excited and you sense that this might be the precursor to a good sale.

After you arrive, after some warm-up, you get to the gist of the negotiations.  She wants better payment terms and this is a big issue.  You have been instructed that your organization is ‘losing’ on payment terms, obviously not collecting soon enough, and you know your bounds.

The negotiations go like this:

Customer: “This could be a deal breaker.”

You: “We can offer four (6) equal monthly payments with a 25% deposit.”

Customer: “We would like twelve (8) equal monthly payments with a 10% deposit.” She continues, “If we don’t get that, we may have to consider remaining with our current vendor.”

You: “I think we can get some movement here.  I spoke to my people, and we can reduce our deposit to 15%, but our installments will remain at 6 equal.”

Customer: (Twists her face and does not respond)

You: “We are a good fit for you.  I will see if there is any way that we can move to the longer term.”  After a moment on the cell phone, you respond, “We have a deal! 15% deposit and 8 equal payments.”

You shake hands and head off into the sunset.  You should not be smiling, as you were thoroughly out-negotiated!

_______________________________

One of the roles of a sales professional is that of negotiator.  It is not a role that you occupy all of the time, but one of tasks that must be done is to finalize, which includes pricing and terms.

Negotiating is a good thing as normally if there are negotiations, there is some acceptance of the product and the relationship.  The problem is most often when a customer goes silent, many in sales give up their bargaining range to get them to talk!  That is what happened in this situation.

Silence is Golden – For the Silent One!

We can learn something from this customer that is priceless:

Most sales professionals are uncomfortable with silence!

Those who are anxious to please, and needing a sale, often give up their negotiating room without ever getting a “no”.   They move to the customer’s position, or very close to it based on silence, or in this situation, silence and the customer’s expressions.

Now, as sales professionals like to talk, I stress that we need to pay respect to those who have learned that silence, by itself, crushes many sales negotiation strategies, and you don’t want it to happen to you.

The facial expression is an example of a ‘flinch’.  The flinch with, or without silence causes many sales professionals to begin to surrender their negotiation room.  A flinch can be a facial expression, upper body movement combined with a drastic facial expression, or even reaching for one’s chest or head ‘in amazement’.

Seemingly indicating that one is aghast (shocked and amazed) that the offer is so bad or lacking, has impact.  What it does is to move someone closer to giving up his or her margin.  Don’t be out negotiated.

I know what you are thinking, “It’s not my money!”  Well it is your money!  Closing the deal with the best terms is what you were hired for.  Be ethical and effective in doing it and there will always be a job for you.  Also, think of what happens when you, the sales professional, give up everything that you have to offer, then have to deal with the client next year.  They will be expecting your ‘cave-in’ again, and you may not have any room to ‘cave’.

Silence by Any Other Name…

It goes without saying in this electronic age that silence has many faces:

• Not responding to a voice mail
• Not responding to emails or written correspondence

Here is a real life example:

I once had a position that required that I purchase personal computers for a training operation.  We needed 12 computers and I negotiated for them and was not excited with the price.  It was not that the price was high; it was that the resources were short, so I went to “beg” my funding sources for more resources to get the products.

I indicated that we needed to consummate the deal by Friday, and because of an illness in the family I had not responded by the proceeding Thursday.  On Thursday afternoon, my assistant handed me a message from the rep cutting the price significantly.   About the same time, I received a call indicating that we had the additional funds to make the purchase.

The sales representative reduced the price without me ever saying ‘No’!  I wonder if his boss knew?

A Good Suggestion

I think the best suggestion that I could give you is to take a good negotiation course.  All sales professionals should take a good negotiation course that also focuses on the ethical nature of negotiating.  There are many out there, and they are worth their weight in gold.  No different than the customer, you should be prepared to use silence as one of the tools in your tool box as well.

Your non-work life will benefit as well as there are few tasks that have as much value making sure you get the right deal.

We will cover some more negotiation techniques here in this journal, yet a course is the way to go.  You will thank me for the suggestion, as there is nothing that will make you more effective and efficient after you have done the heavy lifting like cleanly and clearly negotiating the terms.

Be effective and efficient.

Your comments are appreciated. You can reach me at Michael.Parker@BlackSalesJournal.com.

You are dependent on this individual for you income, and the stability of you family.  This position doles out the training, and even access to some key prospects.  How should you react when this individual makes an “off-color” comment. How measured should your reaction be? Should you ignore it? Should you lash out? You won’t be the first in this situation, or the last!

__________________

Insensitivity and racism exists, and it is not institutional as it is an individual’s personal problem in most cases.  This insensitivity coupled with a lack of respect for racial differences can be vexing.  When it is not handled correctly, it manifests itself as organizations being called racist, when it is actually a particular (or more than one) manager who is the problem.

No one can predict the source or the timing of these types of comments, we just know that as long as you are interacting, there is a possibility that an improper remark will happen.

These are Not Mistakes!

Everyone comes from a different station in life, and their ability to relate to others is hindered by a lack of understanding others and their sensitivity.  Sometimes, it comes across as being insensitive, sometimes rude, and in other instances, it can rank as downright boorish. The fact of the matter is that many, but not all of these statements represent unadulterated displays of racial prejudice.  Be smart enough to know the difference, as they deserve different courses of action.  Be smart, not oversensitive.

I honestly encountered this during my early years of employment, and quickly learned, as will you, who the source of these types of comments would be.  These types of comment are not mistakes.  They are utterances of ones viewpoints, and in many cases a window into one’s upbringing.  I explain this in Black Sales Journal 12/30/2010, Preference, Perceptions, and Prejudice and Your Employer.

I had an opportunity to cover an issue like this in Black Sales Journal 6/27, Changing Racial Perceptions.   This is one you should check out.   I write about it under the sub-heading “Perceptions – An Example from My Past”.   Frankly, as a young sales professional I did not know what to do.  I was left speechless, and that was the last time.

I don’t care if it is 2011, these comments do still happen.  No one cares about hearing an apology from someone for making the statement when the problem is that someone actually feels this way, and they are your superiors at your place of employement.

Measured Reactions When it comes from “the Top”

When a manager or a senior executive makes a comment that is offensive the other managers and employees who are listening immediately sense the impact of the statement.  Many get uncomfortable, and some want to exit.  Remember this in the examples of actions that I suggest, it is the moment of truth, but the group is your ally.  Groups (the audience to your comment) have a way of being very uncomfortable when someone is singled out, and unjustly aggrieved.

When the comment is made, the audience and you are affected:

• Something wrong has been said
• Someone has been wronged or hurt (You)
• There are witnesses to this wrong, and they are victims as well

It is at this point that your actions are most visible, and most observed.  You cannot avoid the spotlight, and your face will quickly show something is a problem.

Here is what you need to remember:

• Don’t be afraid to show that you are disturbed if you are. You do not have to be stoical.
• Show your maturity by not reacting improperly as you are a professional.
• Exiting the conversation speaks volumes, even more than the suggestion of exiting the conversation when it is a peer. Leaving shows your feelings about the comment, and the commenter.
• Match the gravity of the comment to any verbal response you might have, yet I will guarantee you that if the comment has any gravity at all, an “excuse me” will result in a future discussion, or even an apology in the very near future.

Realistically, any apology may be more for having said the comment rather than feeling those things that compelled them to make it.  An apology or admission that the comment was inappropriate will show that this comment should not have been uttered.

These Remarks Are About Power

When you hear a remark that is improper and inappropriate from a manager it is usually results in feeling vulnerable, at least at that moment.  Factually, you should not accept it even if alcohol is involved.  I mention alcohol, as that is a common excuse. The ”he had too much to drink” bit is not kosher, and any manager’s drinking issue is not your problem.

Trust me, no manager wants to have a discussion with his/her manager or human resources about remarks they make involving race, gender, religion, or sexual orientation to a employee.  What is even more problematic is if they have to have that conversation because there was more than one incident.  Most employers, especially large ones have no tolerance for that discussion, especially after the first time.

The Role of Human Resources

I have had the pleasure of working with some very good HR professionals.  As a manager I recognize their focus on the well being of the employee and their willingness to take a manager to task when it is truly necessary.

If you feel aggrieved by a comment, you definitely should approach HR and frankly tell the story.  This is definitely a situation where “the truth will set you free”.  Advise what was said including the audience, and how that made you feel.  Be factual and not emotional.

There are a couple of things that can happen when you talk to HR:

• The manager might be told to have a conversation with you, perhaps including an apology
• The manager can receive a memo of either admonishment or reprimand.
• There is a possibility of the manager being placed in ‘sensitivity or diversity training’.
• If this is a repeat incident, there could be more harsh punishment meted out including termination.

Intelligently realize that you should only involve HR if you really feel aggrieved and they will help you sort it out, as this is not a trivial matter.  Don’t be thin skinned or you will lose credibility.

It goes without saying that you need to avoid jokes about any of those forbidden topics, and stay “clean” yourself.  Recognize that peers and managers should show you respect, and you should do the same.

Your comments are appreciated.  Write me at Michael.Parker@blacksalesjournal.com.