Whether it's convincing your kids to clean their room or convincing your client to pay a higher price for a product. Everything in life is a negotiation. If you want to get ahead in life, you need to understand and practice this skill. Being a strong negotiator will help you generate more income. Here are 14 tips to master the art of negotiation and get higher pay.
It's important to know where your customer is coming from. Be patient; that's a powerful weapon, but you need to resist the urge to come out of the box and try to persuade. By listening to the customer's needs, you can get an idea as to where the win-win solution lies,
Let them feel that you are on their team. You want them to succeed too. So it will pay off to not be focused on short term goals. Put your ego aside.
Tying the negotiation to correspond with the customer's needs is important. Often, a sales rep will start negotiating before the customer is qualified or sold on your solution or product. Have patience and lay out the benefits to the customer. Remember, there's a difference between giving them the benefits and giving them the features. The benefits are how the product or service will help the client and fit their needs.
It's hard to practice in front of your manager or co-workers, but getting feedback is important. Besides, how will you succeed in front of a stranger if you can't talk in front of people you know? Submit a video you've shot yourself to your manager for review. Let them see how you handle objections and have them critique you. Practice in front of the mirror. All the great salespeople practice before they see a client.
There must be a win-win outcome to the negotiation. Lay the foundation for this at the start. It builds credibility and trust that you want everyone to come out of the negotiation ahead. But if it’s not a win-win for everyone involved, be willing to walk away.
Let the customer that you can deliver long-term. Don't focus on price. Anyone can do that. Instead, focus on the value your company brings to the table in the long term. Customers are looking for partners, so ensure that they know that's your goal as well.
Maybe the customer had a bad experience with another company or maybe it was your company. Put yourself in their shoes so you can better understand them and their needs. Listen and reassure them so you can quell their underlying concerns.
Know when you must give your customer space and when you can push. This flexibility, combined with open communication, will help the ebb and flow of the negotiation. It's like a dance, but you don't always lead.
Clear communication is critical. This also includes comprehension and listening skills. You must be able to clearly explain what you have to offer not only face to face by in email and other forms of communication.
When an obstacle is thrown up, ask questions to get to the root of the issue. Never stop asking questions. It will not only help you understand the customer’s pain point but make them feel like you really care. It goes back to empathy.
You and your product or service have worth. Before the meeting, be aware of what is negotiable and what isn't negotiable. If there is room to negotiate on both sides, it is a more comfortable situation. Watch out for interrogation and posturing. You want to be optimistic about this, but be prepared to walk if the deal doesn't align with each other.
Ensure you have a plan "B". It's always better to give options to a customer. Scale back some services if they're budget-conscious. Offer two plans if you see the first doesn't align with their needs. Let them feel like they're in control.
It’s not about going into the customer’s offer and starting to pitch them; it's about framing what your pitch is going to be. By framing it the right way and creating a somewhat sense of urgency (don't push) you may be able to close the deal faster. Think of it as pre-negotiations.
You must know what matters the most for both you and the customer. That way, you'll work together to solve issues rather than become adversarial.
The bottom line to negotiations is listening and empathy. All the other aspects will fall into place if you start out with the appearance that you’re on the customer’s side. And that you want to form a partnership.
