Anne Miller | Negotiating

Wednesday, June 16, 2010

Negotiating Fatal Slip of the Tongue + Webinar 6/17

Hair Today, Gone Tomorrow

After spending millions of her own money to win the GOP senate nomination in California, Carly Fiorina may have permanently hurt her chances of winning in 2010 by her thoughtless comment on incumbent Democratic Senator Barbara Boxer’s hair: “God, what is that?...Sooo yesterday.” A slip of the tongue can be fatal not only in politics but in negotiating as well.

Think about what you say when you open a negotiation discussion. Is it something like, “I am delighted that you want to do business with us. What do we need to do to get a final agreement”? OR, is it something like, “I am delighted that you want to do business with us and am happy to work out an agreement that works for both of us.”?

If it is the former, you may not be risking millions of dollars on the deal, but you are definitely going to get less attractive terms than you would otherwise get with the latter statement. The first statement immediately puts you in a subordinate power position. It makes you sound desperate. It invites being taken advantage of and says, “Go ahead, walk all over me.”

The second statement immediately communicates equality in power positions. It suggests that the deal could fail if it is not beneficial to you as well as to the buyer. It invites a collaborative business discussion likely to lead to a fair deal for you both. It says, “Yes, we want your business, but we have pride in the value of our services and will accept an agreement only if it recognizes that value.”

-------------------------------------------

Under pressure to lower your prices? Find out how to protect your fees and your client relationships at my "Dealing With Price Pressure "Webinar: Thursday, June 17, 1-2PM Eastern Time. $99. Bonus: Save $20 with this Promotion Code 47fbc9f6. Sign up today

-------------------------------------------

Time is Limited: Make What You Say Pay!

SHARE THIS:

Thursday, March 11, 2010

A Rarely Asked But Powerful Negotiating Question

Think of the questions you ask clients in negotiations. Do they include “How do you see yourselves in your industry?”

Your client's answer to this question can be very informative and helpful to you at the point when there is disagreement on price or on some other term of the deal. If you think about it, the only possible answers to the question will be variations of A. Leader, B. Wannabe leader, or C. Some other (often metaphorical) characterization (bell weather, pioneer, pit bull, tortoise, road runner, anchor, etc.) In all cases, these answers reflect either pride or ambition, or both, and, occasionally, fear (on life-support). Tap into your knowledge of those deep values and feelings as you defend the value of what you are offering.

"Mr. Client, you are the leaders of the industry. Why would you not want to work with the leader in our industry?" Or, "Why accept less than the finest quality because of lower price (or other factor on the table for discussion)?" Or, "That is exactly why you are the ones to try this new program, because you ARE the leader."

"Ms. Client, you are among the top three widget companies in your field. Here is a chance to be the lead player in your field. Why miss that opportunity?"

"Ms. Client, you said you see your firm like a 'pitbull.' .What better opportunity to demonstrate that by taking on the bigger firms in this event?"

This appeal to their personal vision is not always going to seal the deal, but it will certainly add emotional punch to your position and may be just the argument you need to tip the final agreement in your favor.

--------------------------------------------------------------------------------------------------

Good source for general business, marketing, sales articles: www.bnet.com

-------------------------------------------------------------------------------------------------

Time is limited: Make What You Say Pay

SHARE THIS:

Wednesday, February 10, 2010

You Don't Get What You Don't Ask For

How do you respond after a client asks for more services for the same amount of money on your proposal after you changed the proposal once already to accommodate their budget?

1. You deny the client’s request, saying your offer is as it stands.

2. You revise the proposal, taking out other components of the offer to accommodate the client’s new request at the same fee level.

3. You ask for more money to accommodate the new requests.

Any of these could work depending on the situation. However, let me advocate for the third option first. Ask for more money. Remind them of the value of what they’re getting (justifies the investment); the fact that you have already adjusted the proposal to earlier requests (introduces an element of fairness); that making any more changes would compromise the solution and tell them, that for the added services, the incremental cost is worth the investment (helps them justify the higher cost).

And, then, be quiet.

Very often, they will recognize that if they want more, they will have to pay more, and agree. If that does not happen, you can always decide to go with options 1 or 2. But, if you skip option 3 first, you are shooting yourself in the foot:: leaving money on the table that could have been yours.

Time is limited: Make What You Say Pay!

As my 13 year-old would say,OMG! Be dazzled by this video

SHARE THIS:

Tuesday, January 19, 2010

Negotiating Value Over Price

You’re too expensive. I can get this cheaper. Our budgets have been slashed. When clients say that in a negotiation, the knee-jerk reaction of many salespeople is to wind themselves up and sell the benefits of their products twice as hard as they did the first time they made the sale. But showing benefits is only one way to demonstrate value to clients. There are at least three other approaches. Do you know them?

1. Raise the issue of Loss: “What will it cost you not to have this policy?” “How much will you lose by not being in the market?” (It is said that people are motivated more by the fear of loss than the promise of gain. Will you stop eating chocolate tomorrow if I say you will be healthier without it or, are you more likely to stop, if I said, there's a good chance you will die at the end of the week, if you eat chocolate?)

2. Focus on Time and Resources: “Do you realize how many years it took to develop these contacts?” “How many people do you think you would need to add to staff to do this yourself?

(Clients forget what it took to make them successful and respected. Pointing out the depth of your resources, not as proud accomplishments, but as questions can often remove the price pressure on you as they recognize what they are indeed getting from you.)

3. Appeal to Ego: “As the leader in the field, why would you work with anything less than the best?” “If you want to compete with the larger, better known firms as you state in your annual report, why would you hire second tier people to fill these jobs?” (It pays to know how your clients see themselves and to what they aspire. A bit like Martial arts - using their weight against them.)

Value comes in many shapes and sizes. By all means, highlight the benefits of your products and services, but also have these approaches in your back pocket if you need them to show value in other ways.

Until next time, remember to Make What You Say, Pay!

P.S. Want to be happier in 2010? It’s easy. It’s fun. It may surprise you. Find out.

SHARE THIS: