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!

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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!

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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 knows?

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.

I can never be confused with being a Green Bay Packer fan. But…this statement is true in sports, sales, and life! Resist succumbing to the urge of letting up! Review this post and find the energy to be the best!

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Your state of mind is important to your success. It can mean the difference between success and failure, and all points in between.  The job of a sales professional is rigorous and demanding in so many ways.

The tolerance, fortitude, and energy necessary to deal with customer needs and employer demands is not a given all of the time.  You have to be ‘feeling it’ to take care of some of these tasks.

More than anything else you need to be aware of when your peak or optimal work ‘window’ is, as that is were you want to time your most taxing activities.

Mental and Physical Conditioning

Working in this occupation will result in some conditioning that makes you stronger and more ‘fit’.  This happens when you have rhythm in your routine.

There is no area where this aspect of your physical and mental ‘conditioning’ is more important than prospecting and cold calling.  This is a prime area that can ‘tax’ a sales professional.  The rejections, unreturned phone calls, and cumulative frustrations can render a fatigued sales professional incapable of being effective.  You need to be on top of your game to deal with the negatives, and stick to your routine.

I had an opportunity to write about the importance of Mental Toughness and Extra Effort (Black Sales Journal 12/29, Mental Toughness Revisited – An Asset for the Black Sales Professional).  In sales, you must be mentally tough to whether the storm.  Check this post out.

“Fatigue Makes Cowards of us All” (Vincent Lombardi, Coach Green Bay Packers)

I am as far from a Green Bay Packers fan as you can get (Yes…I am a Chicago Bear fan) but you don’t have to be a packer fan to realize the strength of this statement.

The world is chocked full of sports quotations, but this one is a little different.   It is a true and powerful statement that speaks to the fact that when we are mentally or physically tired, we will most likely not be at our best.  When we are tired, we take shortcuts, skip steps, and lose our technique and form.

If you are a veteran, you may have conditioned yourself to have endurance.  If not, I would make the suggestion that you note these short rules:

• Time your prospecting. Cold call early in the week, and early in the day when you are freshest.  You are less prone to ‘skip’ it, and there are less chance for excuses to win the day.
• Follow your own rules. Establish your prospecting routines and follow them with consistency including face-to-face and phone prospecting
• Have an audience. Include your manager on some of your face-to-face prospecting ventures if done in person.  Having your manager with you gives you the energy to do it enthusiastically.
• Train somebody. Include a trainee with you on your prospecting ventures for the same reason that you would include the manager; it adds energy to a call to have another individual with you.
• Diligently keep score. Draw energy from knowing your numbers and your success rates.

No Self-Imposed ‘Hells’

Above all, you should avoid heavy use of alcohol and late night romping at sales meetings and conventions as well as with customers.  Be fresh for customers and company interactions.  It is impossible to have the right amount of courage in today’s meeting when you are ‘ripped’ from the activities the night before.

Always be the professional and have the requisite energy to serve the role.