Don’t Let ‘em Grind You Down!
Here’s a simple negotiation technique to help you give up less and get more of what you want.
When I look around my basement, I realize maybe I’m hanging on to too much stuff. On the positive side, when I trade for goods and services, I’m also pretty good at hanging on to my stuff, namely my profit when I’m the seller, and my money when I’m the buyer. So, how good are you at hanging on to what you have? Here’s a simple technique that can make you much better at this aspect of negotiating.
Bad negotiating exemplified
Let’s imagine for a moment you’re a seller engaged in a dialog with a potential buyer:
Buyer: “You’re higher than your competition. What can you do when you sharpen your pencil?”
Seller: “I am authorized to match our competition’s price.”
Buyer: “Great! Unfortunately, I see your standard shipping is two weeks, and I need it on Tuesday. Can you do that?”
Seller: “I can expedite shipping for you. You can have it by Tuesday if you order now.”
Buyer: “Nice! But I won’t be able to use it without the accessories kit. Will you include it at no charge if I buy?”
Seller: “Sure, I’ll do that just for you, because you’re special.”
Let’s stop our example there, although the dialog, and the concessions, probably didn’t stop there. Notice that at no time did the buyer commit to the purchase, despite the fact that the seller discounted away profit and increased costs by expediting shipping and giving away accessories. The buyer is on a roll; why wouldn’t he keep asking for more concessions?
He will because he is grinding, a negotiating technique that enables buyers to continue to sweeten the deal until they take pity on the seller and stop, or the seller makes them stop.
A fair turn
Stopping a grinder is easy: simply replace concessions with trades. Whenever you are asked to give something up, prepare to trade for something of perceived value.
This method works even when no money is trading hands. Perhaps just your time is involved. For instance, maybe your boss wants you to take on “just one more thing.” Instead of automatically saying yes, ask what can come off your current projects list to make room for the new one. Or, say you’ve been scheduled for one more meeting. Ask which deadline can be pushed back to accommodate the new unplanned need for your time. Similarly, when your buyer asks for a price concession, ask for… well, what can you trade?
Bring in your trade-offs
When negotiating, it pays to be prepared. So, anticipate the potential concession requests you may hear from your buyers. Prepare a list of possible trade-offs, which might include:
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Preparation is key. When your buyer asks for a discount, you had better have something ready to trade. When your boss asks for “just one more thing,” it will help to have that list of current projects ready so you can agree on which one to cross off or postpone. When you’re prepared, your dialog can sound like this:
Buyer: “You’re higher than your competition. What can you do when you sharpen your pencil?”
Seller: “I’d be happy to discuss reducing the price. Which features of my offer would you like me to delete so that I can deliver only what my competition is quoting?”
Buyer: “Well, we need everything you’re quoting but, unfortunately, I see your standard shipping is two weeks, and I need it on Tuesday. Can you do that?”
Seller: “I can give you expedited shipping to hit your Tuesday deadline for free, if we can increase your order quantities by 10% to hit our free shipping minimum.”
Buyer: “Well, OK, but I won’t be able to use any of it without the accessories kit. Will you include it at no charge if I buy?”
Seller: “I’d love to do that to get a great new customer like you. Tell you what: if you buy now and agree to give me a glowing testimonial letter when you decide you’re thrilled with us, I’ll get the accessories kit included for you. Have we got a deal?”
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Negotiating the give and take
When you make trades instead of concessions, you can walk away from both formal and impromptu negotiations with more of what you want. Notice that you never have to say “no”; you simply have to be prepared to say, “I’ll give you what you want if I can have what I want.” Prepare, and become a trader that stops the grinding in day-to-day negotiations. You’ll find you’ll have more of what you want, including more deals that are more profitable.
Paul Johnson the Trouble Breaker works with organizations to convert trouble into double and triple digit performance breakthroughs. Discover breakthrough concepts at http://ShortcutsToResults.com. Visit http://ConsultativeSelling.com for more insights about Consultative Selling.
Filed under: Professional Sales Tips
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A good and interesting read, thank you.
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