Negotiations 1 – Care but not that much
This week, we will feature a 5 part series on Negotiations.
When taking the lead in a sales cycle, you must be prepared to walk away from a bad deal. Let’s say you’ve advanced through a selection process and are getting close to finalizing the terms of a large contract. Your selling team has invested significant time and effort through a rigorous evaluation that was mandated by your prospective customer.
But during negotiations with the customer you started to feel that this might not be a good deal. While it can be painful, walking away from a bad deal can be preferable to winning.
What harm can a bad deal potentially do?
It could set a price discount level that will shred your profit potential in future deals.
It could jeopardize your team’s ability to service your customer.
It could cause your customer to lose respect for your company, which could tarnish your reputation.
Negotiations can be tenuous, and if sticky situations create animosity, your relationship could suffer severe permanent harm. The trust you built during pre-sale efforts can evaporate during the post-sale engagement. A damaged relationship can kill future opportunities with your customer.
After completing negotiations, if you feel bitterness toward your customer, you must correct the situation before it gets out of hand. You need to have a frank conversation with your sponsors to recharge your relationship.
Here are two simple rules to consider about negotiations:
You give some. They give some. It’s a win-win. This is negotiating in its simplest form.
You should care, but not that much. When you are too invested in pushing for a completion to the negotiations, you risk showing weakness. Being too anxious puts you in a stressful situation where you might be willing to give in to every demand. You must avoid this mindset.
I’m DJ Sebastian, for more info on what it takes to become an Elite Seller, visit my website at thetechseller.com