Every sales guy knows the manoeuvre: Identify and classify the most
valuable client as “key accounts.” You deliver whatever these key accounts ask
for and with your best team effort and swivel
even if it's not (very) fair or less (un)profitable cuz' you can't afford to
let them just walk away.
The fact is that process of Negotiation is jittering! The negotiator is
always scanning if he's proposing a reasonable deal, or if he'll get fleeced. The
run of the mill vogue is fear of losing the project, thus making the whole
process even more stressful than it's worth. The game is gruelling especially
in cases when the customers apparently know that they are the key players and
they try every move to save cost and land in good discounts.
So here are a few techniques to handle negotiation like a pro and be
calm making the whole affair a good deal!
·
Check your boundaries and focus
on the value: It is
imperative to know what are one's boundaries before entering into the process
of negotiation and what is the take-away from the deal. One needs to figure out
in advance the point of acceptance and agreement, the compromises needed to
make, if any, and the walk-away point in the deal. This helps in mental
preparation for the brutal process and makes it not so-brutal. Focussing on
value here is also crucial as giving up too much or giving too less, both land
up in an undesirable situation of either a meek 'high discount granting' vendor
or an assertively rigid 'no-comeback' vendor. Therefore value estimation and
review is a critical step in negotiating a deal. A research in this area will
let one quote a reasonable and fair striking deal.
·
Target for a higher strike: The best negotiators work
intensely to win; that is, they never want to bring the price point down. One
can use these easy 4 tactics to negotiate:
1. The Freebie Ploy: Don't entertain
the idea of lowering the price, toss in a freebie to sweeten the trade. “Naina, I know the cost of a logo
redesign is worrying you. It’s a big expense for your startup. What if I add to
the deal the re-designing and printing the business cards –of up to 200 cards –
for free?”
This
is important to remember that the freebie has to be of an appealing value, and
will help you come out ahead grabbing the project in your bag.
2. The Package Plan: Make a
package deal on related services like website development and SEO or logo
design and business collateral or brochures. Discount the overall package then,
inform the client about the savings he just made, lands both the parties in a win-win situation,
as the client feels his hands are full and the negotiator has got work for
value.
3. The Engagement-Commitment deal: This strategy deals, with offering
a mark-down in trade of an agreement to do a series of task over a particular
period of time. This strategy works best for repeat projects. For example, a
client has a theme based business and needs stationary, posters, fliers and
banners for every new theme, so if they commit to 5 themes a year, the
organization can offer a decent discount. In case the client is vague about 5
themes, instead of discounting each project, the organization can discount the
final project .
4. The Cash in Advance Discount: In
cases where clients make repeat payments for every time they take a service,
offering a cash discount for paying annually/quarterly up-front will be a
win-win. This also
acts as a measure of job security and client security– they’re likely engaged
with the organization for the duration of their payment – and there is no
monthly chase for payments
·
Give out-Take in: In a situation when a customer is
really insistent for a discount, mention
the product features or services the customer would be amenable to give away to
take in the deal at his price. This tactic compels buyer to identify the
situation that while they may get the desirable price, they will have to
compromise on the value being offered. Give out-Take in shifts the perspective
of the client from the price to the value factor. The end result will be more
productive and enlightening.
·
Comprehend the barrier and
re-analyse: There
might be situations when the client denies and does not want to get in any sort
of trade with your organization. Try a checklist build around the framework of
: client's perception of his money worth and services, blurring need of
product/service, lack of money to pay for the value, fear of commitment, trust
issues with the sales team or organization. Once the right reasons for
diffidence are known, fears can be toned down and a right directed solution can
be suggested or found.
One should keep in mind that a
client has contacted you or is interested in your proposal because you are the
“favoured vendor", and though they may put you through a bellicosity or a
testing situation, they need you, too — you are the preferred choice
because they believe you are the paramount solution for their needs. Be a smart
seller and identify the position of 'favourable vendor' and don't give in to
big fat unreasonable discounts by cutting the prices.
Conclusively, don't fall in the
trap of 'client abscond', where the client acts murky, ignorant and
non-interested. Keep in mind your position of preferred supplier choice and
every product/service has a sizeable switching cost of changing suppliers.
Silence is an influential negotiation strategy; don’t let it pressurize you
into creation of the revenue-destroying model by offering the big fat
unreasonable discount.
Negotiation is a stressful
process, but a strong understanding of the value-provision and using smart
tactics of bargaining can help the build the relationship of cooperation,
collaboration and trust
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