In this final article in the 21st century salesperson series we look at the importance of negotiation skills for salespeople. Of course the negotiation phase has always been a fundamental part of the overall transaction process. In an environment of increased competition, with the drive by customers to reduce costs and to derive additional value from the supplier, the ability of the salesperson to be an effective negotiator becomes a key element in securing profitable business.

If you missed parts 1-3 in this series, follow links below:

• Part 1 - Overview: key trends, challenges and skills required
• Part 2 - Focus on Account Management
• Part 3 - Which is the most important of all the classic selling skills?

What is one of the biggest pitfalls for the salesperson?

The answer? An inability to separate the selling and the negotiation stages of the dialogue with the customer. This results in getting "trapped" into a negotiation discussion before having reached an agreement - as a minimum in principle - that the customer sees the value of doing business with them.

The awareness of the need to do this can be achieved by understanding two key facts. Firstly, the selling process is about identifying customer needs, developing a solution to address those needs, and reaching agreement with the customer that what is being proposed satisfies their requirements. It is, in effect a needs/ solution matching process.

Negotiation also involves agreeing HOW you are going to conduct business - the conditions under which you have agreed to work together. This may involve refining the initial sales proposition, will usually involve financials, but not exclusively. The key learning point is to COMPLETE THE SELLING PROCESS BEFORE MOVING THROUGH TO NEGOTIATION. What is the point of negotiating the detail with a customer if there is not initial agreement in principle to start with?

What does effective negotiation involve?

(1) A belief that balanced negotiation, where the objective is to create a win-win, is the most effective approach. Conflict and compliant approaches will rarely work!

(2) Taking the time to plan and prepare before a negotiation. Asking the following questions will help focused planning. What is on the customer's negotiation list? What is on my negotiation list? What is my ideal position? What is my fallback? Who will be attending the meeting, what are their views and attitudes? What are the financial implications of the requests that the customer may make?

(3) Being able to manage the meeting, by proposing an agenda and agreeing the sequence in which you will deal with the issues that have been identified.

(4) Interpersonal skills to develop a positive relationship, to be able to identify the customer interests which are behind the stated positions, to create a dialogue where alternative solutions are openly discussed and agreements made.

(5) How to handle combat tactics used by the customer. Not everybody subscribes to balanced negotiation.

In summary, whilst negotiation can be seen as a sub set of the selling process, the skills required for effective negotiation are in many ways different and in addition to the recognised core selling skills.

Negotiation is one of our specialist areas in hr TEAM. In addition to working with salespeople on negotiation skills development we have also worked with lawyers, business consultants, managers in business, and doctors. Negotiation is not just for salespeople, it is a life skill.

For more information on our negotiation development programmes for sales and other roles within your business, contact us today...

• Call us on 01435 865 711

• Email us: info@hrteam.co.uk