2. Most Common Negotiating Mistakes
(Page 14)
Not realizing when negotiations Begin
Underestimating of ones Power
Giving concessions to Early, Often and Easily!
Not Preparing effectively, thus failing to understand the
other party
Allowing the negotiations to become Adversarial
Failing to negotiate Internally first
Letting your EGO (emotions) get in the way
3. Most Common Negotiating Mistakes
A mind-set that it is Rigid, failing to listen & understand
Saying Yes to things that you have not previously thought
through
Failing to call Time - Out, in the heat of the action
Not knowing when to Walk away
Failing to recognize when we are Not dealing with a win –
win negotiator
Ineffective follow- through
4. Sources of Negotiating Power
(Page 12)
Fundamental question at hand is … “Who needs who
more than who needs who?”
2 fundamentally important sources of bargaining
power are …
1. The distinctive value that you have communicated
and created … 4 Types Potential types of Value
– Place
– Produce
– Process
– Personal
2. The quality of your BATNA or Next Best Alternative
5. Sources of Negotiating Power
The quality of the Relationship you have with the person
Your Attitude … Degree of self confidence, personal power
The quality of your Preparation … Achieving clarity of
purpose & outcome … Clearly Knowing Walk - Away Point
Negotiating Skills, Strategies & Techniques learned and
developed
The use of “objective criteria”
6. The Customer Satisfaction Equation
(Page 3)
+ + + Delirious
Customer Value Perception
++ Delighted
+ Desired
E +/- CVP = Degree of CS No Neutral
- Disappointed
Customer
Satisfaction -- Disgruntled
--- Disgusted
Expectations
7. The Fundamental Business Success Principle
“Perception”
of Value Selling
Price
Personal Place
Value Value
Process Product
Cost of Value Value
Producing Profit
Value
Everyone in the Organization must understand their role in
CREATING & COMMUNICATING CUSTOMER VALUE!!
11. Customer Centered Consultative Selling
Status-quo Satisfaction
(Page 7)
Need Awareness
Need Evaluation
Information Gathering
? Competitive Evaluation ?
? Concern Resolution ?
DECISION
Implementation
Utilization
12. Benefits of Asking Questions
(Page 8)
Allows you to determine where customer is in buying process
Obtains info required for effective problem solving and
decision making … Vital to your positioning as a
“consultative problem solver” NOT sales person
Demonstrates your intentions creates opportunity to listen …
Both vital to building Trust
Involves customer, building commitment to implementation
Gives sales person control without being domineering
Allows you time to think and strategize during conversation
Ask questions in a systematic and professional manner is a
humble way to establish credibility
13. Guidelines to Asking Questions
80% of time should be invested in ________ to your customer
Customer’s time is valuable, key is relevance
Must be conversational, not interrogation Use open questions,
Be wary of asking leading questions, appears manipulative
You must earn right to ask increasingly important questions
Take good Notes
The key is to ask a systematic series of series of questions
1} Situation questions … 2} Gap Questions … 3} Leverage
questions … 4} Commitment questions
14. Situation Questions
(Page 9)
Open with confirmation Questions
Use the 5 W’s to guide you in gathering information
Key is to identify what is truly Important to prospect in terms
of desired Results / Outcomes and how they measure it
15. Gap Questions
Ideally get them Rate current performance achieving results
Purpose to identify or create GAPS between prospect is
Now (RESULTS) and where they SHOULD or COULD be
PROBLEM GAPS OPPORTUNITY GAPS
Customer usually Aware … Our Customer usually Unaware …
job is to Identify Our job is to Create
New developments,
Frustrations, difficulties, areas of
benchmarking, areas of growth
poor performance versus goals
and potential
Ask question that uncover area of Ask “What if” questions
dissatisfaction, frustration or pain
16. Leverage Questions
The purpose of leverage Persuasion questions is to
increase to Motivation to change
Key is to establish what it will MEAN to the customer …
How the prospect will Benefit if we close the gap and what
it will Cost if we fail to close the gap
Attempt to make the consequences or effects of the gap as
Tangible as possible … Monetize
17. Commitment Questions
Questions that confirm agreement to move forward in the
process
“What our Next Steps?”
“Does that make sense to you?”
Goal is to surface disagreement, doubts or objections
18. Speaking so People Listen, Believe, Understand
& Remember What You Say
(Page 10)
“Repetition mother of all Learning” … “3 Tells Model”… Key
repeat key messages without appearing redundant!
Head is on the far side of their heart! … Must believe that
you genuinely care and that you are trying to HELP them!
Best way of demonstrating that you care is to prove you
understand them
Key to successful communication is to be above all else, the
key is to be your natural self!
Persuasion is a transfer of enthusiasm! Can’t transfer what
you don’t have.
19. Speaking so People Listen, Believe, Understand
& Remember What You Say
Use Visual aids as much as possible … diagrams, graphs
and models.
Use real life examples whenever possible
Use analogies and metaphors, especially those that
conjure visual images! … Vital benefits …
Holds interest, saves time, crystallizes understanding
and increases retention
Tell stories to make your point … Must keep them
relevant and short! Be careful not to make yourself the
hero of your stories
20. Speaking so People Listen, Believe, Understand
& Remember What You Say
Listen with your Eyes to constantly gauge reactions
Eye contact is the most powerful method of Connecting
and engaging person … The “4 Is” of eye contact … What
we want is the first I – Involvement … Beware of -
I____________ I____________ I_____________
Vocabulary – Focus on expressing and not impressing!
Use plain, straight talk! Big words and acronyms only
distract and disconnect
When speaking, try to use Vocal variety – vary your
pace, tone, volume and emphasis.
Use Silence effectively … the “Power of the Pause”!
22. Competitive Negotiations - Best Practices
(Page 13)
Be planned and prepared … Know your “Ideal Outcomes”
and you “Walk-Away Point”
Start high … Build in a buffer in prep to “split the difference”
Shut up!!! … Limit info you give, info is power
Never say YES to anything you have not previously thought-
out
Discover other persons “degree of authority” as soon as
possible
23. Competitive Negotiations - Best Practices
Tactfully test their facts and opinions! … Use objective
criteria when possible … Market value, legal precedent or
3rd party, professional, scientific or moral standards
Demonstrate patience … 80% of concessions,
agreements and developments happen in last 20% of time
If you recognize that someone is using a manipulative tactic
– name it! … “You wouldn’t use old tick on me would you?”
Get the other person to make first offer
Never say YES to first offer
24. Competitive Negotiations - Best Practices
Never give without a Get!
Don’t be fooled by “funny money”
If you make concessions, make them slowly & painfully
When other party makes request for concession or favour -
use the wince or in extreme cases, the full-body flinch
Don’t overreact to threats and intimidation … Don’t bite
those baited hooks …Respond calmly
When emotions are running high call for a time-out!
25. Competitive Negotiations - Best Practices
Take good notes! Power goes to person with best notes
When threatened or pressured demonstrate “ assertive
pacifism” or “verbal jujitsu”… Ask questions and listen! …
Stand your ground but don’t fight back
Convert resistance, objections and pressure into questions
that require discussion
Power usually goes to person with the most time … It is vital
to discover your counter-parts “time-line”
Realize that often “deadlines” can be moved or changed and
should be tested by asking the reason for the deadline