Negotiation is not a battle !
Is a doctor a sales person?
These yellow boxes give you
more info about the slides.
Before I introduce myself I want
you to think about this. I don’t
need an answer right away. I’ll
come back to it later in this
presentation.
TjorvenDenorme
@TjorvenD
If you have any questions about
this presentation, feel free to
ping me on linkedin, facebook,
twitter or instagram.
Negotiation is way down the
sales funnel. It’s one of the last
steps before a prospect becomes
a customer.
But the sales funnel as you see
when you google it, is ….
Negotiation is way down the
sales funnel. It’s one of the last
steps before a prospect becomes
a customer.
But the sales funnel as you see
when you google it, is ….
It should be up side down.
Gravity doesn’t work in sales.
You have to keep pushing up to
end up with a new customer.
Negotiationis one of the laststeps before
prospectturns customer.
Negotiation is not a battle !
Negotiating is about letting
everybody win. Yes, some win
first place, but the idea is that
you win second place. You don’t
lose first place. That is the best
way to maintain a long
relationship.
Yes you can do this. But make sure
that you are rich enough once you
fucked everybody or everybody
knows that you do that.
Entrepreneurship is not short term.
No losers, all winners
Building a relationship
It is a marathon, not a sprint.
You need preparation to get to
the start and stamina to get to
the end.
H2HNo matter who you sell to. Big
corporates or small businesses or
direct to consumer. It is always a
human to human interaction.
So you should know which
human is in front of you.
Selling
Negotioting can be you selling to
a customer. Turning a product or
a service into money.
Or you trying to buy something.
First part : Selling
Is a doctor a sales person?
Coming back to the first
question. Imagine that when you
are with the doctor and he starts
with explaining all the pills,
ointments, drinks, he has. And
then he says. Ok, what do you
want.
A doctor first diagnoses. He asks
questions to know where the
pain is and then he has ONE
offer to fix that.
Don’t be the sales person that
shows of all the products.
Be a doctor. Know where the
pain is, and release that pain
with your offer.
Types of Customers
The internet gives you many
types of customers. From 4 to 10
types. I have made 5 categories.
Early adopter
Secure housefather
Analytical
Vanity
Price
Early adopterI want to be the first !
Early adopterI want to be the first !
New feature
You’ll be the first to test it
Special
Never seen before
He wants to be the first with the
new iphone, that new app, the
new sneakers, car, watch, …
A very good customer for
startups. He shops anywhere to
be the first.
Vanity I am a customer and I want people to know it.
Vanity I am a customer and I want people to know it.
We only sell to certain companies
Exclusive
Limited edition
Tailor-made
Your testimonial on our website
Vanity is not about the first, but
about the brand. BMW driver,
Adidas shoes, Rolex watch.
Vanity is keen on brand. It
doesn’t have to be new.
Vanity I am a customer and I want people to know it.
Eco
Green
Bio
Organic
Remember. Green, eco is also
vanity. We all know the
instagram people with the
healthy food and yoga pictures.
This is all about bragging rights.
Bragging with what you have.
BMW, organic, …
Price Cheaper is better
Price Cheaper is better
The normal price is, but for you ...
Discount
Promo
Sales
Easy, they always want to pay
less than you ask. If you know
that, start high enough.
Analytical Give me all the details
Analytical Give me all the details
We, as the experts, recommend ...
Every component
Tested
Proven record
Testimonials
He/she wants to be sure not to
buy something they will regret.
So they need to know a lot. Are
not good in trusting you. They
need time and reassurance.
Secure housefather
Want to date my 16 year old daughter. Really?
Secure housefather
Want to date my 16 year old daughter. Really?
Trust
Security
Not happy, money back
Free trail
Testimonials of people he/she knows
Very hard to get through.
Doesn’t trust testimonials, only
testimonials of people she/he
knows.
Early adopter
Secure housefather
Analytical
Vanity
Price
easy
hard
From easy to hard. From fast to
that could take a long time to get
that company to be a customer.
But be aware …
Early adopter
Secure housefather
Analytical
Vanity
Price
Short
Long
The easier they become a
customer, the easier they will be
likely to switch. You need to feed
the early adopter with new
things. Price buyers will always
seek for a lower price. Last group
will stay longer as a customer. So
mix your customer list, you’ll
need all of them.
Company profile ≠ Buyer profile
Yes, in a bank, people are more
conservative than in a marketing
agency, but remember it’s
human to human. Everybody is
different.
Buyer profile ≠ Every product
I am vanity for sneakers, but not
for pants. I’m price buyer for a
bag of chips, but I’m analytical
when I buy my phone.
Knowledge is power
Be a doctor !
NEGOTIATION
Complaints or Objections
are buying signals !
When they have objections, be
happy, be very happy. Because
they only have objections when
you are close. I don’t negotiate
the price of a car or the rimms, if
I don’t need a car.
Be happy with objections.
Because solve that and you have
a contract.
Know ALL objections before you negotiate !
Important !
But don’t get to enthousiastic by
immediatly solving the
objections. Try to know all
objections before you negotiate.
You need amunition to
negotiate. You only know how
much you’ll have to use once
you know all the objections.
Here are the questions to ask to
get there.
Know ALL objections before you negotiate !
Important !
If I lower the price, will you then buy our product?
If we deliver next week, will you then buy?
If we give you exclusivity will you then sign the deal ?
If we have that extra feature …
If you give, ask back !
It doesn’t have to be in perfect
balance every single time, but
don’t give things away. Ask for
something back. Here is what a
customer could ask .
Later Payment
Volume discount
Faster delivery
Better quality
Exclusivity
Discount
Extra features
Yes, they want nirvana, but that
doesn’t exist. If you want good
and fast, it’ll cost you. If you
want good and cheap, it won’t
be fast. And if you want it fast
and cheap, it won’t be the best
thing you’ll ever see.
Later delivery
More volume
Direct payment
Pay before delivery
Higher price
His reference
Testimonial
His introduction at other prospects
If you want something back. It
can be later delivery, more
volume for discount, direct
payment. Or even his reference
you can use to score new
customers, testimonials on your
website or introductions to other
companies. Things that don’t
cost them anything, but have
value to you.
Know ALL objections before you negotiate !
Important !
But again, don’t fall into the trap
of answering one by one. Make
sure that you have all things that
stops the customer from buying.
And then make an offer which
tackles all.
Be a doctor. Know where it hurts.
And make ONE offer. ONE pill.
Reculer pour mieux sauter
No, you don’t have to make that
offer then and there. Say you
have to give that some thought.
Say that for that kind of decision
you need to talk with the other
founders, or shareholders. Or
even invent someone. Take your
time to make that offer she can’t
refuse.
If you give, ask back !
WIN
WIN
You have to make a profit and be
able to deliver the amount at the
right time. Everything more is
bonus. Be willing to cut from
that bonus to seduce the
customer into saying yes. And
make him happy.
You need to win, but the other
side has to have that same
feeling. Put yourself in their
position. Would I be happy if I
were the customer?
It’s a marathon, you want to sell
more in the future. They have to
be happy.
Negotiation is more than price,
but yes price will always be part
of it.
9 € / Month / User
1 € discount / Month / User
Go from 9 euro to 8 euro. And
you’ll never get back to your 9
euro. And people talk, so
everybody will pay you 8 euro.
Instead think of other ways to
convince the customer.
No € discount / Month / User
Give x months for free in return for testimonial
Don’t drop the price. Give some
months for free. Calculate what
you lose and try to win it with
what you ask back.
Discount from 1000 is 200.
20% can be 200 euro.
Discount from 1.000.000 is 200.000
not
999.800
Or 200.000 euro. Be aware of
the actual amount that you give
away.
There are too many ways to
calculate price. Google Lean
Pricing by Omar Mohout and
read that. There is everything
you need to know about pricing.
There is no such thing as a good price.
Price = cost of making + profit ?
Price = what the fool is willing to pay ?
First Iphone was 500 euro,
second 600 euro. Next 1100
euro? As long as the customer
stays ‘foolish’ they will raise the
price.
55€
Is 55 too much?
It depends on what you buy of
course. That is why when you get
: “ You are too expensive “. It’s
not about the number. It’s about
the value. Start with explaining
the value, increasing the value.
And not with lowering the price.
55 € for a sandwich is a lot.
5500€
5500 euro for a brand new
Porsche 911 is cheap.
So 55 can be expensive, 5500
can be cheap. When they ask for
a discount, don’t think about the
price, think about the value.
What’s the value of
He’ll buy that glass of water for a
lot of money. The value is high.
Just pencil written on a piece of
paper. Except this is worth 1.2
million dollar.
Value ! Value ! Value ! Price is
just a number.
HOT COLD
LUKE
WARM
Left hand in hot water, right
hand in cold. Then both in luke
warm. One hand will feel cold
other will feel hot. Same water.
How can you sell a 4475 euro
watch?
Not like this.
That is the way to do it.
And they all do it.
A expensive thing, a cheap thing
and the thing they want to sell
you right in the middle.
We all know, we all see it, but 9
still works. Many tests have been
done.
49 is better than 45. Higher
number, but more sales, because
of the 9.
A number can look different if
you reframe it.
1000€ / year
89€ / month
2,99€ / day
1000 euro may seem a lot more
than 2,99 a day. But it isn’t.
For your price look how to
position it.
If you give a discount do it the
other way around. Don’t give
2,99 euro discount give 1000
euro.
Price is just a number. First thing
is not lowering the price. First
thing is increasing the value,
explain the value.
Negotiation is not only selling
Buying
You are at the other side of the
table. Same rules apply, but now
the other way around.
What do you want?
Low price
Fast delivery
Volume discount
Be a good patient. Know where it
hurts, when it hurts.
The better you know what you
want. The better you can
negotiate and the more certain
that you are going to be that the
deal you made is a good deal.
Don’t give
all your
objections
at once!
Yes, do that, but not too much.
Don’t
do
this!
You want a good deal. Only
winners.
Don’t be fooled by prices.
Per month, 9, …
Human to Human !
What is her/his win? What’s yours?
Objections are buying signals !
Gather all before you tackle one by one .
TjorvenDenorme
@TjorvenD

Negotiation :A guide to win

  • 1.
  • 2.
    Is a doctora sales person? These yellow boxes give you more info about the slides. Before I introduce myself I want you to think about this. I don’t need an answer right away. I’ll come back to it later in this presentation.
  • 3.
    TjorvenDenorme @TjorvenD If you haveany questions about this presentation, feel free to ping me on linkedin, facebook, twitter or instagram.
  • 4.
    Negotiation is waydown the sales funnel. It’s one of the last steps before a prospect becomes a customer. But the sales funnel as you see when you google it, is ….
  • 5.
    Negotiation is waydown the sales funnel. It’s one of the last steps before a prospect becomes a customer. But the sales funnel as you see when you google it, is ….
  • 6.
    It should beup side down. Gravity doesn’t work in sales. You have to keep pushing up to end up with a new customer.
  • 7.
    Negotiationis one ofthe laststeps before prospectturns customer.
  • 8.
    Negotiation is nota battle ! Negotiating is about letting everybody win. Yes, some win first place, but the idea is that you win second place. You don’t lose first place. That is the best way to maintain a long relationship.
  • 9.
    Yes you cando this. But make sure that you are rich enough once you fucked everybody or everybody knows that you do that. Entrepreneurship is not short term.
  • 10.
  • 11.
  • 12.
    It is amarathon, not a sprint. You need preparation to get to the start and stamina to get to the end.
  • 14.
    H2HNo matter whoyou sell to. Big corporates or small businesses or direct to consumer. It is always a human to human interaction. So you should know which human is in front of you.
  • 15.
    Selling Negotioting can beyou selling to a customer. Turning a product or a service into money. Or you trying to buy something. First part : Selling
  • 16.
    Is a doctora sales person? Coming back to the first question. Imagine that when you are with the doctor and he starts with explaining all the pills, ointments, drinks, he has. And then he says. Ok, what do you want. A doctor first diagnoses. He asks questions to know where the pain is and then he has ONE offer to fix that. Don’t be the sales person that shows of all the products. Be a doctor. Know where the pain is, and release that pain with your offer.
  • 18.
  • 19.
    The internet givesyou many types of customers. From 4 to 10 types. I have made 5 categories.
  • 20.
  • 21.
    Early adopterI wantto be the first !
  • 22.
    Early adopterI wantto be the first ! New feature You’ll be the first to test it Special Never seen before He wants to be the first with the new iphone, that new app, the new sneakers, car, watch, … A very good customer for startups. He shops anywhere to be the first.
  • 23.
    Vanity I ama customer and I want people to know it.
  • 24.
    Vanity I ama customer and I want people to know it. We only sell to certain companies Exclusive Limited edition Tailor-made Your testimonial on our website Vanity is not about the first, but about the brand. BMW driver, Adidas shoes, Rolex watch. Vanity is keen on brand. It doesn’t have to be new.
  • 25.
    Vanity I ama customer and I want people to know it. Eco Green Bio Organic Remember. Green, eco is also vanity. We all know the instagram people with the healthy food and yoga pictures. This is all about bragging rights. Bragging with what you have. BMW, organic, …
  • 26.
  • 27.
    Price Cheaper isbetter The normal price is, but for you ... Discount Promo Sales Easy, they always want to pay less than you ask. If you know that, start high enough.
  • 28.
    Analytical Give meall the details
  • 29.
    Analytical Give meall the details We, as the experts, recommend ... Every component Tested Proven record Testimonials He/she wants to be sure not to buy something they will regret. So they need to know a lot. Are not good in trusting you. They need time and reassurance.
  • 30.
    Secure housefather Want todate my 16 year old daughter. Really?
  • 31.
    Secure housefather Want todate my 16 year old daughter. Really? Trust Security Not happy, money back Free trail Testimonials of people he/she knows Very hard to get through. Doesn’t trust testimonials, only testimonials of people she/he knows.
  • 32.
    Early adopter Secure housefather Analytical Vanity Price easy hard Fromeasy to hard. From fast to that could take a long time to get that company to be a customer. But be aware …
  • 33.
    Early adopter Secure housefather Analytical Vanity Price Short Long Theeasier they become a customer, the easier they will be likely to switch. You need to feed the early adopter with new things. Price buyers will always seek for a lower price. Last group will stay longer as a customer. So mix your customer list, you’ll need all of them.
  • 34.
    Company profile ≠Buyer profile Yes, in a bank, people are more conservative than in a marketing agency, but remember it’s human to human. Everybody is different.
  • 35.
    Buyer profile ≠Every product I am vanity for sneakers, but not for pants. I’m price buyer for a bag of chips, but I’m analytical when I buy my phone.
  • 36.
  • 37.
  • 39.
  • 40.
    Complaints or Objections arebuying signals ! When they have objections, be happy, be very happy. Because they only have objections when you are close. I don’t negotiate the price of a car or the rimms, if I don’t need a car. Be happy with objections. Because solve that and you have a contract.
  • 41.
    Know ALL objectionsbefore you negotiate ! Important ! But don’t get to enthousiastic by immediatly solving the objections. Try to know all objections before you negotiate. You need amunition to negotiate. You only know how much you’ll have to use once you know all the objections. Here are the questions to ask to get there.
  • 42.
    Know ALL objectionsbefore you negotiate ! Important ! If I lower the price, will you then buy our product? If we deliver next week, will you then buy? If we give you exclusivity will you then sign the deal ? If we have that extra feature …
  • 43.
    If you give,ask back ! It doesn’t have to be in perfect balance every single time, but don’t give things away. Ask for something back. Here is what a customer could ask .
  • 45.
    Later Payment Volume discount Fasterdelivery Better quality Exclusivity Discount Extra features
  • 46.
    Yes, they wantnirvana, but that doesn’t exist. If you want good and fast, it’ll cost you. If you want good and cheap, it won’t be fast. And if you want it fast and cheap, it won’t be the best thing you’ll ever see.
  • 48.
    Later delivery More volume Directpayment Pay before delivery Higher price His reference Testimonial His introduction at other prospects If you want something back. It can be later delivery, more volume for discount, direct payment. Or even his reference you can use to score new customers, testimonials on your website or introductions to other companies. Things that don’t cost them anything, but have value to you.
  • 49.
    Know ALL objectionsbefore you negotiate ! Important ! But again, don’t fall into the trap of answering one by one. Make sure that you have all things that stops the customer from buying. And then make an offer which tackles all. Be a doctor. Know where it hurts. And make ONE offer. ONE pill.
  • 50.
    Reculer pour mieuxsauter No, you don’t have to make that offer then and there. Say you have to give that some thought. Say that for that kind of decision you need to talk with the other founders, or shareholders. Or even invent someone. Take your time to make that offer she can’t refuse.
  • 51.
    If you give,ask back !
  • 52.
    WIN WIN You have tomake a profit and be able to deliver the amount at the right time. Everything more is bonus. Be willing to cut from that bonus to seduce the customer into saying yes. And make him happy. You need to win, but the other side has to have that same feeling. Put yourself in their position. Would I be happy if I were the customer? It’s a marathon, you want to sell more in the future. They have to be happy.
  • 53.
    Negotiation is morethan price, but yes price will always be part of it.
  • 54.
    9 € /Month / User
  • 55.
    1 € discount/ Month / User Go from 9 euro to 8 euro. And you’ll never get back to your 9 euro. And people talk, so everybody will pay you 8 euro. Instead think of other ways to convince the customer.
  • 56.
    No € discount/ Month / User Give x months for free in return for testimonial Don’t drop the price. Give some months for free. Calculate what you lose and try to win it with what you ask back.
  • 57.
    Discount from 1000is 200. 20% can be 200 euro.
  • 58.
    Discount from 1.000.000is 200.000 not 999.800 Or 200.000 euro. Be aware of the actual amount that you give away.
  • 59.
    There are toomany ways to calculate price. Google Lean Pricing by Omar Mohout and read that. There is everything you need to know about pricing.
  • 60.
    There is nosuch thing as a good price. Price = cost of making + profit ? Price = what the fool is willing to pay ? First Iphone was 500 euro, second 600 euro. Next 1100 euro? As long as the customer stays ‘foolish’ they will raise the price.
  • 61.
    55€ Is 55 toomuch? It depends on what you buy of course. That is why when you get : “ You are too expensive “. It’s not about the number. It’s about the value. Start with explaining the value, increasing the value. And not with lowering the price. 55 € for a sandwich is a lot.
  • 62.
    5500€ 5500 euro fora brand new Porsche 911 is cheap. So 55 can be expensive, 5500 can be cheap. When they ask for a discount, don’t think about the price, think about the value.
  • 63.
  • 64.
    He’ll buy thatglass of water for a lot of money. The value is high.
  • 65.
    Just pencil writtenon a piece of paper. Except this is worth 1.2 million dollar. Value ! Value ! Value ! Price is just a number.
  • 66.
    HOT COLD LUKE WARM Left handin hot water, right hand in cold. Then both in luke warm. One hand will feel cold other will feel hot. Same water. How can you sell a 4475 euro watch?
  • 67.
  • 68.
    That is theway to do it.
  • 69.
    And they alldo it. A expensive thing, a cheap thing and the thing they want to sell you right in the middle.
  • 70.
    We all know,we all see it, but 9 still works. Many tests have been done. 49 is better than 45. Higher number, but more sales, because of the 9.
  • 71.
    A number canlook different if you reframe it.
  • 72.
    1000€ / year 89€/ month 2,99€ / day 1000 euro may seem a lot more than 2,99 a day. But it isn’t. For your price look how to position it. If you give a discount do it the other way around. Don’t give 2,99 euro discount give 1000 euro.
  • 73.
    Price is justa number. First thing is not lowering the price. First thing is increasing the value, explain the value.
  • 74.
    Negotiation is notonly selling
  • 75.
  • 76.
    You are atthe other side of the table. Same rules apply, but now the other way around.
  • 77.
    What do youwant? Low price Fast delivery Volume discount Be a good patient. Know where it hurts, when it hurts. The better you know what you want. The better you can negotiate and the more certain that you are going to be that the deal you made is a good deal.
  • 78.
    Don’t give all your objections atonce! Yes, do that, but not too much.
  • 79.
    Don’t do this! You want agood deal. Only winners.
  • 80.
    Don’t be fooledby prices. Per month, 9, …
  • 81.
    Human to Human! What is her/his win? What’s yours? Objections are buying signals ! Gather all before you tackle one by one .
  • 82.