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Negotiation

Anyone who has contact with customers is a salesperson – that includes the telephonist who answers the phone and the service engineer who calls to repair a machine. So that probably includes you!

The relationship between a salesperson and a client is important: both parties want to feel satisfied with their deal and neither wants to feel cheated. A friendly, respectful relationship is more effective than an aggressive, competitive one.

A salesperson should believe that his or her product has certain advantages over the competition. Customers want to be sure that they are buying a product that is good value and of high quality. People in business are not going to spend their company’s money on something they don’t really need (unlike consumers, who can sometimes be persuaded to buy ‘useless’ products like fur coats and solid gold watches).

Some salespeople adopt a direct ‘hard sell’ approach, while others use a more indirect ‘soft’ approach. Which approach do you prefer? Whichever approach is used, in the end perhaps a good salesperson is someone who can persuade anyone to buy anything. On the other hand, maybe a good salesperson is someone who knows how to deal with different kinds of people and who can point out how his or her product will benefit each individual customer in special ways. After all a buyer is called a ‘buyer’ because he or she wants to buy. All you need to do is to convince them that your product is the one they want. A successful sales meeting depends on both the salesperson and the customer asking each other the right sort of questions.

Exercise 5. Fill the gaps in these sentences with these words before buying client individual product wants weakness.

If you want to be a successful negotiator and salesperson you should:

1. Know your … and its main features.

2. Know the strengths and … of competing products.

3. Find out who makes the … decisions on your client’s firm.

4. Plan each sales interview … it takes place.

5. Match what you’re selling to each client’s … and needs.

6. Listen to what your … tells you.

7. Remember that each client is an … , not a number.

Exercise 6. The following text gives you an idea of a typical meeting of a salesperson and a client. While reading the text answer these two general questions:

1. What is the talk about?

2. What stages are referred to in the talk?

Each typical meeting consists of three stages.

The first stage is the Opening Stage. Usually this is a phone call. But you might be preceding it with a letter, or a brochure or something like that. The first thing you have to do is get past the secretary, that’s the most important. Find out when exactly you can talk to your prospect. Don’t accept a promise to ring you back, ever. And you need to explain who you are what you are selling. And arrange an appointment.

The second step is the building Stage. In other words the sales interview itself. It’s important to prepare well and rehearse doing this sales interview. You can role-play it with a friend or a relation. This person should try to be unfriendly and uncooperative and difficult, to give you the right sort of practice. Then dress suitably for the occasion. Behave in a friendly confident but business-like manner. And remember not to spend too long on social conversation, it makes people impatient, before getting down to business. Try and show the client that you are a responsible, trustworthy person, which of course you are. Tell the client about all the other well-known firms who use your product. Let the client know the benefits of the product. Be careful that you don’t do all the talking. Ask him questions. Make sure they’re open questions, not ones he can just answer with a yes or no, to find out what his needs are. You should talk only about half the time. Make sure of that.

The hardest thing to deal with during the meeting of a salesperson and a client is objections, that is, when a client starts giving you reasons why he doesn’t need to buy your product. The client may be looking for arguments to use to justify to his superiors or his colleagues, for buying your product. And if you can answer these objections, you’re well on the way to making a sale. But the important thing is to prepare answers to all foreseeable objections.

So, give your prepared answer or if you don’t have an answer tell the client about a further benefit. The important thing is not to spend too long trying to answer an objection. It gives it too much importance. Remember, don’t argue with the client.

Finally, you get to stage three: the Closing Stage – recognizing that your client wants to buy and is on the point of confirming that order. Now, this is the hardest part, because it depends on timing. You have to judge when your client is ready to place that order. Then you can thank him for the order and go on to your next appointment. Now there’s one more thing. Once you have a promise of the order, if it’s a new client, do remember to check their financial status. And sometimes even if it’s an old client, don’t start work until you have a written confirmation of the order.

Exercise 12.Get acquainted with ten rules for negotiating and do the assignment given below.

1. Find out how many points are to be negotiated.

2. Start from an extreme position.

3. Assume the other person owes you a concession.

4. Don’t concede without exchanges.

5. Don’t give what you can sell.

6. Exaggerate the value of your concessions, minimize the value of the other person’s.

7. If they insist on “principle”, expect a concession in return.

8. Only threaten what you are prepared to carry out.

9. Don’t show disrespect to the other person.

10. If you are happy with the result, don’t shout “I’ve won!”

Assignment: Look at the remarks in list A. These remarks are not good for negotiating. Instead, use phrases from list B.

Example: Instead of “You see? I knew I’d win!” say “I think we can agree on these terms”.

Exercise 13. A) Read the list of the conditions which are common in various kinds of business agreement. Pay attention to the examples given to each of the conditions.

B) Try to question the conditions on the list.

Model: I’m not too happy about the unit price. I think $8.2 would be more reasonable/appropriate.

C) When you have questioned all the conditions, try to do the exercise again with the left-hand column covered.

Exercise 14. In negotiation managers sometimes find themselves in difficult situations. Here a list of expressions, which may be used in each problem situation.

a) Read them.

1. I think we need to look at the exact figures.

2. So is that quite clear...?

3. I don’t think we’re talking about the same thing.

4. Can we say it’s agreed here and now?

5. Where does this January figure come from?

6. So what is your basis of calculation here?

7. Just give me a moment to do some calculations.

8. I’m sorry, could you go through that again?

9. Yes, I think we’re talking at cross-purposes.

10. I’ll have to come back to you on this.

11. Let me just check. Could you bear with me a moment?

12. I’m sorry, I don’t have the figures to hand.

b) Which key expression would you use in the following cases?

Example: The other person has just realized that you are talking about different products! You say “Yes, I think we’re talking at cross-purposes”.

a) The other person wants you to agree a definite price today, but you need to consult your boss at the office tomorrow before committing yourself.

b) He/She suddenly asks you what discount you would make for a very large order indeed. You need a minute to work it out.

c) He/She asks to see the commission payments for the last three years. You didn’t bring these figures because they are not really important.

d) He/She suddenly asks the price of similar products in the range. You have the price list in your briefcase – somewhere.

e) He/She has already explained the commission system twice, but you are still not really clear.

f) You have been talking about air transportation costs while they have been talking about costs for Transportationи by sea. They suddenly realize and point this out.

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