Black Sales Journal

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 tin 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.

You have been selected to have a preliminary or phone interview as part of the screening process for a job that you want badly.  This job has all of the trappings including the business automobile, protected territory, great compensation plan, and more.

The phone interview, if you are successful, will lead to an in-person interview in another state with the hiring manager.  The phone interview is with the human resources recruiter and you want a home run!

This scenario is not uncommon.  In the sales profession, with candidates often located good distances from the main offices, companies wisely make decisions to screening interviews on the phone before considering bringing a candidate in for an in-person interview.

There are many reasons to use the phone for this purpose; the main reason is that it is cost effective.  Travel which is very expensive now days, and companies are wise to try to avoid some of this expense.  Additionally, if candidates are closely matched in their qualifications, a decision as to who to interview might be determined by some well-directed questions.

There are some tactics that you can undertake that will prepare you and put you in the best light.

You Are the Expert on You

You have heard me say this before, and you will undoubtedly hear it again, “You are the expert on you!” Don’t fall into the trap of waiting for questions that will show your worth, be prepared to give the interviewer the requisite information that makes you shine.

Gather the following information:

• Your Resume – the exact copy that the interviewee has been given.  Know your accomplishments, that is what sets you apart.
• A clear concise salary history (You probably won’t need it, but be prepared).
• A brief ‘elevator pitch’ on yourself describing why you deserve the job.  Brief means 45 seconds or less.
• Your reasons for leaving any job that you have had in the past 10 years.  Reduce it to writing and be strong at explaining it.
• Your sales statistics (this is a big one) that should include percentages of improvement or growth (or the opposite).  Again, it is all about accomplishments
• A clear concise picture of the organization you would like to join.  What are the markets, products, accomplishments, etc.

Your objective is to have this valuable information at your fingertips, as when there is a pause on the phone, the interviewer cannot tell what you are doing.  You need to be prepared mentally, and prepared from the standpoint of reference material on your background.  The most important part is that you should be able to recite it chapter and verse without much prompting.

Any question on your background and talents should be in your realm of information.  Additionally, you should be able to put into words your strengths, weaknesses and professional objectives as these are common questions.

Phone Interview Etiquette

Just a couple of rules for the interview itself:

• Establish what you will call the interviewer. This can be done during the introductions.  If you don’t know, then stick to “Mr. Johnson” until he tells you differently.
• No background noise at all if possible.  You don’t need Barry White begging in the background, even if it does not distract you.
• No interruptions.  Set it for a time when you will have no interruptions such as young students returning home from school.
• Don’t interrupt the interviewer. Do not step on someone’s sentences, as that will annoy them.
• Use a landline phone if at all possible.  There is nothing more distracting than a dropped call when someone is trying to give you a chance at a career.
• Block call-waiting notifications. If your service allows it, block call-waiting notifications.  Those annoying clicks when your friends are calling are extremely distracting to an interviewer, even if they do not bother you.  (Dialing *70 prior to the call usually blocks the call waiting feature)
• Conference correctly. If you use the conference feature on your phone, be careful with rustling paper and background noise.  No gum or candy, and no pets in the vicinity.
• No Eating. This may sound like a no-brainer, yet people do it.  Have water nearby, and recognize swilling water does produce noise.

It is important to realize that if they are annoyed by your background noise, or the difficulty they have in understanding you, they will ‘check out’ and lean toward another candidate.  Make this a pleasant experience.

Your Objective is Simple – a Face-to-Face Interview!

Go in knowing what the prize is, but also know that your chance to make the impression is increased if you can get face-to-face.  So…your phone interview might be done in racial anonymity, especially if your resume and other correspondence was done in a race neutral format. I am compelled to explain these briefly here:

Racial anonymity – Meaning there has been no disclosure as to race on your part, and none was asked.  The interviewer has no positive verification of your race, and presumably makes the decisions on the basis of the quality of the telephone interview.

Race Neutral Format – The resume, and any supporting information gives no indication of race, fraternal or sorority involvement. The reviewer is left to make the decision on the basis of your qualifications and the telephone interview itself.

You are not concealing anything, you are answering their questions and attempting to get the position.   The more level the playing field, the less of an effect that preference can have in the initial screening process (Refer to Black Sales Journal 12/30/2010 – Preference, Perceptions, and Prejudice and Your Employer).  I know that there may be issues that don’t allow racial anonymity including which college or university you attended, and some voice intonations, yet it is worth the effort if you can sound as race neutral as possible.

Above all, recognize that you will not have a chance without getting past this initial screen.  Approach it with vigor and a plan.  Be prepared!

Your comments are welcome.