In this SlideShare, Richardson discusses how successful sellers are moving beyond the adversarial approach to negotiating. Winning the sale today requires a consultative style. In the end, the relationship between the buyer and seller strengthens winning the sale today and tomorrow.

1. CONSULTATIVE NEGOTIATIONS

2. 1% 8%=
Discount
Operating
Margin
A 1% increase in discount
results in a 8% decrease in
operating margin.
- McKinsey
Copyright © 2017 Richardson

3. Copyright © 2017 Richardson
Harvard Business Review reported on a study from
Wharton and MIT which “shows that people with
higher EQ [emotional intelligence] are more likely to
induce positive mood states in their negotiation
counterparts and leave them more satisfied with the
outcome of the negotiation."

4. NEOGATION STYLES
COLD HOT
ADVERSARIAL CONSULTATIVE ACCOMMODATING
(win/lose)
• Focus only on their needs
• Use intimidation and
pressure tactics
• Display arrogance and
anger
(win/win)
• Focus on mutually successful
outcomes
• Use Questioning & Positioning
• Focus on business issues and
relationship issues
• Find creative ways to achieve
mutually successful outcomes
(lose/win)
• Focus on relating
• Avoid conflict
• Concede to demands

5. GUIDING PRINCIPLES
Trust is difficult to build but easy to lose. The trust you have built with your
customer is the ground you stand on as you negotiate. Effective negotiators
build on this trust and remain consultative in their approach to add value during
negotiations.
Reinforcing value occurs throughout all phases of the negotiation, beginning
with the Opening Exchange. Link the value of your solution to the customer’s
priorities as you position price and terms. Reinforce value after you convert
demands to needs. Position value as you trade to be more persuasive, gain
agreement, and maximize your outcome while meeting the customer’s needs.
Many people fall into the trap of trading before they fully understand all of their
customer’s needs. Having a well-prepared strategy enables you to maintain
control of the negotiation and avoid the trap of trading too soon. By following
the Consultative Negotiations Framework, you will be able to guide the
negotiation with confidence, not arrogance.
Getting what you want – even if it’s not all you wanted – while maintaining and
strengthening the relationship is the driver for consultative negotiations. A
mutually successful outcome doesn’t necessarily mean equal. It simply comes
from both parties feeling satisfied and having their essential needs met. Using
the consultative approach will contribute to the most rewarding and creative
outcomes for all.

6. THE SALES/NEGOTIATION CONTINUUM
Copyright © 2019 Richardson.All rights reserved.

7. SIX CRITICAL SKILLS
Copyright © 2019 Richardson.All rights reserved.
Using acknowledgment,
rapport, and empathy to
connect
Actively understanding
content and emotional
messages in order to show
interest, connect, learn, and
build trust
Fostering openness and
creating dialogue to
uncover, explore, shape,
and define needs
Projecting confidence,
credibility, and conviction in
body language, voice, and
words to show interest, gain
respect, and inspire trust
Presenting compelling
information in a relevant,
tailored, and logical way to
be intellectually and
emotionally persuasive
Eliciting feedback to
inform your next best
move in the dialogue

8. OPEN
Your actions during the
opening exchange enable
you to gain control of the
process, set the tone, and
anchor the negotiation.

9. Anchoring Bias
Despite conventional wisdom, science
reveals a natural bias that gives
advantage to the first person who
offers. This is created by the Anchoring
Bias -- our tendency to overly rely on
the first bit of information we get. The
initial information becomes a reference
point (anchor) for subsequent thinking
and judgments. Studies show that
people who make the first offer get
better terms that are closer to
their target.
Reciprocity
Science reveals that holding back
on sharing information has a
negative impact on desired outcomes
and reduces trust. According to the
established social norm of reciprocity,
we are inclined to respond to another
person’s action with a similar action. If
we want information, then we need to
share our information - which builds a
customer’s willingness to share and
trust.
Copyright © 2017 Richardson

10. CONTROL
Customer requests and demands
are a starting point. What you
do with them determines
your outcome.

11. Copyright © 2017 Richardson
Social Determination Theory
for Questioning
Human beings have three fundamental needs
for personal growth and well-being that
sellers need to respect: Autonomy,
Competence, and Relatedness. The
Questioning Skills help us to respect these
fundamental needs by: 1) staying emotionally
connected with the customer, which feeds
into relatedness; 2) avoiding coming across as
manipulative, which protects the customer’s
sense of autonomy; and 3) creating a safe
environment to discuss challenging or
sensitive situations, which protects the
customer’s sense of competency.

12. Copyright © 2017 Richardson
SHAPING PERCEPTION OFVALUE

13. TRADE
Change the price,
change the deal.

14. Many studies confirm that while most of
us prefer to get bad news all at once, we
prefer to get good news in
installments. Negotiation experts
confirm that making multiple, small
concessions informs the customer that
we are flexible and willing to respond to
needs. Also, the pattern of concessions is
a signal to the customer. If concessions
are of varying size, this signals the
customer to keep going. If concessions
are of diminishing size, this signals
approach to a bottom line.
Copyright © 2017 Richardson

15. HOW
CAN WE HELP YOU DRIVE
SALES EXCELLENCE?
Richardson’s Consultative
Negotiations
 Blended Solution
 One-day facilitated
workshop (Richardson-
led or train-the-trainer)
 Accelerate Digital
Learning Platform

16. RICHARDSON ACCELERATETM
DIGITAL LEARNING PLATFORM
Copyright © 2019 Richardson.All rights reserved.
ANY DEVICE. ANYWHERE.
www.Richardson.com
215-940-9255
Meghan.Steiner@Richardson.comLET’S GET IN TOUCH