What are the Negotiation Skills You Must Learn to succeed if you genuinely want to be successful in sales?
The main goal of any sales negotiation is to reach an acceptable agreement for both parties. During the negotiation process, buyers and sellers communicate what they want and need and where they are able or willing to make concessions.
The environment will dictate the level of Negotiation Skills required, the required outcome, and the people or businesses involved in the negotiations.
The following are several key negotiation skills that apply to many business situations. The list is by no means complete, but it will provide the reader with an improved perspective of the skills they will need to develop.
Active listening
Active listening skills are crucial for understanding the other person’s position in all negotiations. They involve retaining information, taking excellent notes, and understanding the priority/importance of the prospective buyer’s focus.
Communication
I have covered essential communication skills in a previous post, so please refer to that post.
Decision making
Good negotiators can act decisively during a negotiation, given that it may be necessary to agree to a compromise as part of the negotiation. You need to be able to react decisively, keeping in mind that your decisions may have lasting effects on yourself or your company. It is essential to think through your options carefully without overthinking your decision. Going back and forth between your options without a clear answer might bring unnecessary stress.
Emotional intelligence
Emotional intelligence is the ability to control one’s emotions while reading other people, given that the dynamics of any meeting can change quickly.
If you’re unsatisfied with the negotiation’s progress at any time, don’t be afraid to call a halt and seek to reconvene later. However, you must do so with a fresh perspective.
Integrity
Integrity, having strong ethical and moral principles, is essential in any negotiation.
Being thoughtful, respectful, and honest builds trust in what you say.
As a negotiator, you must be able to follow through on any commitments you make during the negotiation process.
Manage Expectations
Ensure that before you enter negotiations, you clearly understand what you would prefer to gain and what you are prepared to accept. You must know that both parties have set similar boundaries in any negotiation. Hence, a negotiated outcome is highly probable unless there is a chasm between the parties that cannot be bridged.
Patience
Some negotiations can take longer and involve multiple negotiations and possible counteroffers. Patience will always win out, so let the process unfold, and you will reach a conclusion that suits both sides.
Persuasion
The ability to influence others about the importance of your product/solution is no less important than the skills used to negotiate an outcome of more significant benefit to you. Persuasion starts with the product/solution offered, which is highlighted by the actual or perceived benefits the product/solution offers, and finally, any additional inducement you may be prepared to provide to close the business.
Planning
Negotiation requires planning to determine what you need from the sale and what you are prepared to negotiate away to win the business.
It is essential to know the value (RRP) and the cost (product cost, including the cost of materials, labour costs, and manufacturing overhead costs)of any product you may offer as part of the negotiation. For example, a widget may have a product cost of $50 and an RRP of $159, so offering the customer 10 widgets as an inducement to purchase provides them with $1,590 in value while your costs are only $500.
Problem-solving
Negotiation requires the ability to see the problem and find a solution. If a price is too high, how can it be lowered? If a resource is in short supply, how can it be increased? Finding unique solutions to problems may be the determining factor in compromise.
Other Items Covered: What Are Micro Selling Skills
- Active Listening Skills
- Communication Skills
- Negotiation Skills
- Persuasive Skills
- Problem-Solving Skills
- Presentation Skills
- Self-Motivating Skills
- Story Telling Skills
