BY Tim Londergan
In the competitive world of B2B sales there are several skillsets that you should master. Sales negotiation remains one of the most important.
Recent posts have reviewed cold call initiation and retain a sense of urgency. Others have addressed sales planning strategies and tips on sales performance.
Now, we’ve progressed to the point of bringing specifics to the forefront while advancing our best efforts at sales and negotiation.
Understanding B2B Sales and Negotiation
Long-term relationships are the lifeblood of a B2B sales company. Mutually beneficial agreements will sustain a continuing revenue flow and bring valuable referrals. They do this by finding win-win outcomes and making concessions.
Author and trainer, Anthony Iannarino shares a wealth of information through various posts and offers expert advice for all sellers. Whether negotiating with your own sales manager, a new prospect or long-time customer, Iannarino adds wisdom to your resources. His discussion of offense and defense positions are outlined through sample dialogue for easy understanding of complex sales and negotiation.
Furthermore, he provides an analysis of the sales rep’s performance to solidify his teaching. This article is an overview of what can be expected should you sign up for a formal training course.
Creating Value and Declaring Value
According to Katie Shonk, writing for Harvard Daily Blog, the most effective bargainers collaborate and compete simultaneously. Referred to as Integrative Negotiation, both parties have shared interests or opportunities to realize mutual gains across multiple issues.
Interestingly, when multiple items are being negotiated, participants have the potential to make tradeoffs across issues and create value. Further, there may be opportunities to add other issues to the mix. The challenge is to be innovative during the process while contemplating the other’s options, needs and wants.
Three tips for successful integrative negotiation:
- Break down the problem to its essential components
- Close the divide on differences with deal structuring and bartering
- Play “what if” to foster creative outlooks and reduce groupthink
Shonk’s post includes an invitation to download a special report from Harvard Law School: Dealmaking: Secrets of Successful Dealmaking in Business Negotiations.
Build Rapport, Ask Good Questions and Active Listening
Strong bonds and trust are not always feasible with your negotiating partner, especially, if time is tight. However, making strides in building rapport can bring real benefits.
Additionally, asking open ended questions and active listening while paraphrasing your counterpart is always a helpful practice.
The above are suggestions, again, from Harvard’s Daily Blog. This article lists 10 Negotiation Skills to help you improve sales and negotiation talents. It presents a quick review of abilities that can up your game and make bargaining easier and more productive.
Some of the more practical points encourage analysis BEFORE you begin the process. For instance, spend time identifying your best alternative to a negotiated agreement, or BATNA, and take steps to improve it.
Another term is MESOs. This is a technique of presenting multiple equivalent offers simultaneously. This allows flexibility and the potential for tradeoffs among separate but highly valued issues.
Be Aware of Anchoring Bias or a Possible Contingency Contract
Unsurprisingly, the first number mentioned can create an anchoring bias and you’d like it to be in your favor. If your counterpart anchors first, keep your BATNA firmly in mind.
Another opening to reach an agreement may be to impose a contingency on a settlement that rewards or penalizes a participant based on performance. Consequently, time and circumstance can alter the best plans. Therefore, a clause that would compensate an injured party may solidify an otherwise touchy arrangement.
Applying these strategies consistently will contribute to the sales and negotiation process and help B2B sales professionals achieve better outcomes, foster lasting client relationships, and drive long-term revenue growth.
Photo by Anna Shvets on Pexels.com
