1. “In life you do not get what you deserve; you get what you negotiate.” This quote by Chester
Karrasshas stood the test of time and proves true every time two people sit across any
negotiation table.
Why do we negotiate? Why don’t both parties just spell out what they want, agree on the deal,
exchange their assets and happily walk out with what they got?
Unfortunately, in a world where pizza is round and pizza boxes are square, things do not work according
to simple logic. Negotiations occur when an agreement on mutual benefit is reached, and parties are
willing to make concessions to make gain.
Now, what do you do when you are called for negotiation? First of all, you know that you are in the final
stage of closing, so be positive; visualize yourself successfully closing the deal, exchanging handshakes
with your customer and walking victoriously to your office to prepare the contract.
Secondly, make sure you go to the negotiation meeting ready by remembering these pointers:
1. Understand one thing – you are there to negotiate, notto donate! If you are going to give
concessions, you have to take gain.
2. Set your target,not just the discount you are willing to give. Remember that killing your price is
not everything.
3. Your negotiation arsenal has more than deep discounts – you have upfront payment to ask for
in return of a better price, delivery time that can be expedited, payment terms that can be
improved , extended warranty, future price protection, enterprise agreements, shipping costs
that can be saved, etc..
4. Ask yourself this pertinent question – what is the minimum I am willing to accept and the
maximum I am willing to give?
5. Work out your detailed costing.
6. Figure out what the other party wants and what will they give.
7. Determine whether there are any pressure factors on the decision such as compliance dates,
product launching, commitment to senior management, financial pressures (quarter/year end).
• It helps if you can do role playing with a colleague before you attend the meeting, two minds are
better than one.
Good luck closing more fruitful sales. If you need a write up on any particular area in sales,please don’t
hesitate to contact me and I will be happy to help.
Ashraf Osman, Sales Optimization Consultant.
