Business negotiations are a vital element of success in business, particularly sales. By definition, it’s a bargaining process between two or more parties – each with its own aims, needs, and viewpoints – seeking to discover a common ground and reach an agreement to settle a matter of mutual concern.
In this post, we will show you why business negotiations are the best tactic for VPs of sales, sales managers, and other sales leaders.
Let’s take a look!
The Benefits of Business Negotiations
What are the practical benefits of business negotiations? Here are the most important answers:
1. Reach a win-win situation
Contrary to popular belief, negotiations are a two-fold process. In a perfect world, there should be no winners and losers. The goal is to create a win-win situation, thus making each party satisfied with the final outcome. According to the report, 80% of negotiators adopt the same strategy. This happens because they all share the same goal and that is to reach a consensus about the most significant topics.
2. Improve your position
The purpose of negotiations is to give something and then take something in return. The latter is crucial because you use communication skills to improve your position and improve the bottom line. That way, your company is getting the extra 10% or 20% needed to move on with the project smoothly.
3. Negotiation skills build confidence
Experienced negotiators are always self-assured. They don’t panic or rush into things. Instead, they know when it’s time to withdraw for a while or to put additional pressure on a client. You should strive for the same thing, building your confidence along the way.
4. Negotiations build respect
When two parties meet to negotiate, they play a delicate game in which no side is supposed to get everything. Playing your moves subtly, you gradually build authority, and the client will start respecting you for your knowledge and professionalism.
5. The art of making a compromise
As we already mentioned, negotiations are not ‘the winner takes it all’ kind of game. On the contrary, it’s the art of reaching a compromise that can keep both sides happy. To put it simply, nobody leaves the room exhausted and disappointed. In such circumstances, negotiations create preconditions for a successful long-term relationship between you and your clients.
How to Improve Business Negotiation Skills
Negotiation proficiency is a skill, and as such, it can be learned. There are many ways to practice and improve your negotiation capacity, but we will show you only the most relevant tactics. Here they are:
A study revealed that successful negotiations are 80% preparation. You need to learn everything about your client, his history of operations, previous projects, statistical information, etc. Doing so, you can go to the meeting holding the best cards in your hands.
Know your goals… and theirs
Before you engage in negotiations, you have to understand the ultimate goal. Is it to increase the price of your products or services? Or you want to expand portfolio and sell more stuff to the same client? This is the bottom line you don’t want to go under, but you also need to know your prospect’s goals to make the corresponding compromise.
Create a negotiating strategy
Once you’ve understood the goals and prepared for business negotiations, you need to create a strategy. Sometimes it’s better to make the first move, while on other occasions it’s easier to wait for the other side to propose a solution. It all depends on the peculiarities of your business, but make sure to figure it out before entering the negotiation room.
Use the power of silence
Most clients want you to act convincingly and talk about the business with authority. However, there is always that one point in negotiations when you need to use silence to have the biggest effect on the prospect. Be patient and wait for the business partner to react. It’s often a breaking point, so don’t miss your chance to seal the deal with the raw power of silence.
Business negotiations are the best tactic to improve your business position and acquire new clients. The process can give you substantial benefits, contributing to the overall success of your company.
This post explained to you why business negotiations are the best tactic for VPs of sales, sales managers, and other sales leaders. Keep our tips in mind and don’t hesitate to use them while meeting your prospects.
Fair & Friendly Negotiation
A 5-Step Model to Success in Negotiating Download Now
Tom Jager is professional blogger. He works at A-Writer. He has degree in Law and English literature. Tom has written numerous articles/online journals. You can reach him on Facebook.