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Sales Gravy - 7 Rules of negotiation - Coggle Diagram
Sales Gravy - 7 Rules of negotiation
1: Emotional discipline wins
the more overly full your pipeline is the more confidence you have and emotional control - less desperate
The PIPE is LIFE
The person with the greatest control has the highest probability of gaining their desired outcome
The universal law of need
the more you need to win a deal the more likely you are to lose - and the more you will be willing to give away to win
Emotions are contagious - easily transferred to the other person
Maintain
Relaxed
Assertive
Confidence
this is the most powerful emotional foundation at the sales negotiation table
Have the pride - i do great things for people and companies
Be confident in your product, yourself and your price
3: Play 2 win
Win for my company not for your customer
My primary job and obligation is to win for my company, this is the mindset to enter every negotiation with
Win Win - usually means you lose
the win win excuse is the warm blanket of delusion where your dignity company profits and commission check curl up to die
Remember the value of a penny
Sales Negotiation style types
caver - instantly goes lower on price
Dual process - win for your team and protect relationship -
BEST
- find a way to work together > have a conversation, don't cave or compromise first - learn more first
find out about the objections - see if i can find a way to meet in the middle
ask some more questions - add or remove some parts of the deal
we may have to remove some extras
Compromiser - give and take, find a compromise
Competitor - doesn't give an inch - negative vibe - not gonna talk about it etc.
Empathy
Outcome
2: Win first then negotiate
Become the vendor of choice first
Do not negotiate until your stakeholders have named you the VOC - either explicitly or implicitly
Become their vendor of choice first then worry about price
Build the case of value first - what are gonna help them do, save, enhance, build etc.
if you price too early in your process then people have no reason to like you, to have any other reason to but from you
Your sales process should be something like this - each meeting may be 10 -15 mins
1: First - discovery - learn and listen - ask questions and understand what they want and need. what are their challenges etc. - do not give them a price
2nd - present and outline how we can help you
3: 3rd - meeting to present price, either phone or IRL - its hard to negotiate in email and tough to deliver value
PEOPLE BUY FROM PEOPLE THEY LIKE - BUILD RAPPOR
are you the vendor of choice
Explicit - fully revealed or expressed without vagueness, implication or ambiguity, leaving no question as to meaning or intent
implicit- implied though not fully expressed
How do you know
they ask about next steps
asking about solving problems
they call about things we don't even do
they call only for info - not interested in us so watch out
The more you are the vendor of choice the less likely you are to lose a deal due to price only - it makes everything easier
6: neutralize alternatives
what am i doing throughout the process to show how my solution has more value than my competitors
Power is derived from alternatives
competitors
different solution
new path
status quo
another configuration
keep shopping
do it internally
do nothing
need to know the alternatives
how to neutralize perceived alternatives
target qualified prospects
know your competitors
develop advocates
build relationships
do deep discovery
build a powerful business case
know the metrics that matter
leverage scarcity and time compression
present references case studies and testimonials
4: Protect relationships
when you break the emotional connection you are much less likely to win the deal
1 bad experience can cause people to never do business with you again
bad news is spread much faster than good news
Resentment and contempt are the gangrene of relationships festering below the surface often unspoken slowly rotting away the connections that bind people together until the relationship is destroyed
make sure you are not confrontational and combative
even when you leave a negotiation and you lose you still want to feel good about the relationship because the circumstances could change
Keep your cool
Relationships matter - do not lose sight of the lifetime value of customers
do not use hard nosed tactics and cheesy negotiation gambits
win for your team and protect relationships(dual process)
these two endeavors are not mutually exclusive
5: master the sales process
MAKE SURE YOU HAVE A SALES PROCESS
Typical sales process
bridge to next steps, present business case and solutions
ask for next steps, close the sale, become the VENDOR OF CHOICE
handle objections and negotiate
discovery and building your business case
connect build rapport gain up front agreements
what is your process and am i taking the time to build the rapport
it should be at least a couple of meetings - you need multiple steps in the process
never negotiate price on your first call
always be gaining micro commitments - always be booking a definitive scheduled next meeting / call
call for pricing explanation
humans are more likely to think something negative about someone else other than giving them the benefit of the doubt
GET AN AGREED SCHEDULED NEXT MEETING AT THE END OF YOUR CALL / MEETING 100% OF THE TIME
FAILURE OT FOLLOW THE SALES PROCESS
removes buyers accountability
short cuts discovery and building your business case
weakens your leverage
increases perceived alternatives
weakens your position
causes you to negotiate too soon
ADVANCING WITH MICRO COMMITMENTS
Never leave a sales conversation without gaining a firm commitment for a next step
plan and map ideal advances and next steps (IANS)
know your targeted next step prior to every sales call
the key to gaining next steps: ASK
Value Bias and the investment effect
humans value that which costs them more, which gives you leverage. With each micro commitment people place ever increasing value on the buying journey and a greater sense of responsibility to move toward an outcome
7: Never give away leverage for free
leverage is currency
when you have something someone else wants you have leverage.
it has value and must be exchanged for value.
effective sales negotiators never give away leverage without getting something of equal or greater value in return
doesnt always mean you have to lower your price
The power of leverage
shape stakeholder behavior
align the buying process to your sales process
cause buyers to engage and make micro commitments
trade for concessions
compel stakeholders to stop negotiating and align on an agreement
Forms of leverage
information
pricing
your proposal
scarcity
take aways
FOMO
free stuff
non complenebtary behavior
investment effect
time and deadlines
obligation
7 Rules
Emotional discipline wins
win first then negotiate
play to win
protect relationships
master the sales process
neutralize alternatives
never give leverage away for free