The objective of learning and using this type of commercial negotiation and personal influence tactics is for you to achieve higher profit margins and the satisfaction of your clients, reaching satisfactory agreements for both parties, without tricks, without cheating, and without regrets from the other part, but looking for the best possible return for you.
THE BEST WAY TO MAKE CONCESSIONS IS…
I sell, you buy…
Is it possible that we both win * really * in a negotiation?
Many times I am asked how it can work in commercial practice that both parties can win in a negotiation.
If you work in sales you've probably heard by now that the goal in a negotiation is to create a solution where both parties can win.
Well, that is very nice, of course… but let's face it, when you are in front of a client many times he wants the same thing that you want. He wants the lowest price, and you want the highest price. He wants to increase his profit margin, at his expense.
I propose a different strategy. More important than what * really * happens is our perception of what is happening.
Two sellers can go out separately to visit two buyers who are in the same circumstances. The two sellers can close their sales at exactly the same price and with identical conditions, but the seller who knows how to negotiate will make the buyer feel that it was she who won.
The seller who does not know how to negotiate will leave the buyer with the feeling of having lost.
How you can notice has nothing to do with the price or the conditions, but with the client's interpretation of what happened.
Suppose you are going to sell your car. Obviously, the better the price you get, the higher the price will be for whoever buys it, even when the negotiation is equally satisfactory for both parties.
Let's say you ask for $ 15,000 for your car, but it could go as high as $ 14,000, so you have a trading range of $ 1,000. How you award this $ 1,000 is critical.
How to make concessions in a negotiation?
There are several mistakes that you should avoid:
- MISTAKE ONE: Make several equal concessions.
This would be to award your trading range of $ 1,000, in 4 equal grants of $ 250. Imagine what the other person would be thinking if you did that.
The other doesn't know how much more he can keep pressing, all he knows is that every time he presses, he gets another $ 250. So he's going to keep pressing. In fact, it is already a mistake to make two grants of the same value.
If you are going to buy a car, and the owner makes a $ 250 concession, and you keep pushing and the owner makes another $ 250 concession again, wouldn't you assume that your next concession is also going to be $ 250?
- ERROR TWO: Make one last high grant.
Now let's say you make a grant of $ 600, followed by another grant of $ 400. Then you say to the other person, "This is absolutely the lowest price I can give you, not a penny more."
The problem is that $ 400 is too high a grant to be the last grant. The other person is probably thinking that you made a grant of $ 600, followed by another one of $ 400, so they are sure they can get at least one grant over $ 100 from you.
Then he says: «We are closer. If you drop $ 100 more, we close the deal.
You reject this proposal saying that you cannot even lose $ 10, because you have already awarded every last penny.
At this point the other is irritated, because he is thinking: «You just made me a concession of $ 400, and now you're not even going to give me 10 miserable pesos. Why are you so rigid, why are you so difficult?
So avoid making one last high compromise, because there is a high probability that this will create hostility between you and the other.
These styles of concessions that we discussed are wrong, because they create in the mind of the other a pattern of expectations.
THE BEST WAY TO MAKE CONCESSIONS IS:
First offer a reasonable allowance. Maybe a $ 400 grant wouldn't hurt. Then, make sure that in the case of having to make more concessions, they are smaller and smaller. Your next grant may be $ 300, then $ 200, and then $ 100. By reducing the size of your grants, you convince the other person that you have pressured him and taken him as far as you could go, because he has subtly statement that you can not get anything better than what you are offering.
In this case you have seen that there are several ways to make mistakes when making concessions in a negotiation, and ONE way to do it well, and that is the type of knowledge that you must acquire, and that you must put into practice, you must know what they are. the mistakes you should never make, and what is the correct way to lead negotiations.
The objective of learning and using this type of commercial negotiation and personal influence tactics is for you to achieve higher profit margins and the satisfaction of your clients, reaching satisfactory agreements for both parties, without tricks, without cheating, and without regrets from the other part, but looking for the best possible return for you.
If you want to organize a seminar in your city or within your company and teach your vendors how to use these techniques, please send me an email at ppekeradiobaganaropciones.com.ar
