SSN – Negotiation – Flashcards
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Target Price
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The amount that if achieved, would make you feel like you got a pretty good deal.
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Opening Offer
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The amount at which you will start the negotiation
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Walkaway Price
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You will "Walk Away" from the negotiation before you will go beyond this limit
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Name the 6 Principle of Sales
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1) Positioning Product and Services Advantageously 2) Set high targets 3) Manage Information Skillfully 4) Know the full range and strength of your power 5) Satisfy Customer NEEDS over WANTS 6) Concede According to plan
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What must your positioning statement be?
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3-5 words BRIEF, COMPELLING, REPEATABLE
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Experts ask nearly ______ times more questions and do one third of the talking.
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2 1/3
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Sales people tend to rely on _____ as their main source of power
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Information
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List the 6 Sources of Power
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1) Situational Power 2)Personal Power 3) Organizational Power 4) Planning Power 5) Knowledge of Customer power 6) Information Power
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Situational Power
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1) Power that comes from positive or negative factors inherent in the situation.
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Knowledge of Your Customer
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1) Learning as much as you can about your customer as a person and how he/she is likely to react in a negotiation. This can be done through data gather, or face - to - face relationship building. 2) Understanding your customer's national as well as organizational culture
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Information Power
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1) Business info derived from your research that is going to help you support your cause with your customer
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Organizational Power
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1) Power that comes from the reputation your company has earned in the industry and your own reputation within the organization 2) Power that comes from your company's ability to execute it's strategy in a coordinated manner
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Personal Power
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1) Power that arises from your ability to effectively communicate your commitment, your belief in your product/ service, and your confidence in the outcome. 2) Power that arises from your ability to build and trust relationships. 3) Power that flows out of your sales and negotiation skills
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Planning Power
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Planning a winning negotiation strategy by using the SSN principles as well as anticipating and planning your response to challenging situations.
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Want
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Specific and obvious satisfied one way (usually money)
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Need
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Less tangible; must draw out
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Car Sale is an example of a ____ negotiation
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Competitive
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Competitive Sales characteristics
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1) Self interest 2) One negotiable usually: money 3) Win/ Lose negotiation
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Collaborative Sales characteristics
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1) Long term relationship critical
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What characteristic is present in all negotiations
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Tension
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Name the five Concession Patterns
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1) Wrecking Ball 2) Avalanche 3) Ice Cream Cone 4) Martini 5) Lollipop
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Wrecking Ball
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"I'm inflexible. I am not willing to negotiate" 1) No give and take 2) Hardball negotiator 3) This negotiation will likely break down
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Avalanche
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" If you hang in there, you can get it free" 1) Motivates the other party to keep pushing 2) Even if he/she gets a lot from you, the other party may still feel unhappy that he/she didn't get more. 3) He/ She may wonder if it's some kind of game 4) He/She will certainly want to drag you into round five
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Ice Cream Cone
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" I am willing to negotiate and concede some, but I have a bottom line." 1) Give enough of a concession to show good fait to open the bargaining process 2) Send the message that you're getting to the limits of your flexibility by diminishing concessions as you approach closure.
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Martini
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" I am serious about my proposal, yet willing to concede some. However, I have a bottom line" 1) Initially hold firm to test the other party's resolve 2) Give a concession as necessary to keep making progress 3) Send the message that you're getting to the limits of your flexibility by diminishing concessions as you approach closure
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Lollipop
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"Let's get this done. It's take it or leave it" 1) You are trying to win the business in one try 2) After that, you will frustrate the other party
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Most important concession guideline
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When you give a concession, get one in return.
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Elegant Negotiable
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High value to the customer, but low cost to you
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List the Ten Guidelines for dealing with Price Pressure
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1) Position around value 2) Compare value, not price 3) Build negotiating space into your proposals 4) Concede slowly and reluctantly 5) Exchange price concessions for true commitment 6) Avoid negotiating on price alone 7) Defer the price discussion until you fully understand the underlying needs that are met by your solution 8) Uncover underlying personal needs and work to meet them 9) Uncover entire rationale for price/discount request 10) slow down
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Creative Negotiation Characteristics
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1) Propose conditionally 2) Make trades
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Four Types of Negotiation Tactics
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1) Procedural 2) Legitimacy 3) Personal Power-Up 4) Lie- Cheat and steal
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Procedural Tactics
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Attempts to establish procedures or define the negotiation process to gain an advantage. 1) Good Guy/ Bad Guy 2) Deadline
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Legitimacy Tactics
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Tactic employed to attempt to define a law you have to follow 1) Take it or leave it: Thats all we have in our budget for this project so that's the most we can pay 2) Established norms: That's not our policy, that's not our way of doing things 3) Limited Authority: I have to get approval 4) Limited Resources: I have no resources to handle project unless you provide
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Personal Power-up Tactics
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1) Location: lowering chair 2) Show up late 3) Interruption 4) Going around you ---> to manager 5) outnumbering you
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Lie, Cheat, and Steal Tactics
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Not living up to agreements 1) Non-performance: sorry we are not going to pay on schedule I am sure you can be flexible w a customer like us 2) The deceptive stall: I cant make the decision this week what about two months from now 3) False Rumors: Ive heard.... 4) Escalation: Now that we agreed to this give us extra 5) Nibbling: Now that ive ordered computer free software 6) Fait accompli: I cant pay for the additional software because I already produced a check
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What two behaviors can counter tactics
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1) Ask open ended questions 2) Make demands
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selling = ______
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wheter
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How= ____
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How
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Selling and Negotiation are???
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Intergrated
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Name of the line that separates selling activity from negotiating
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Motivation Line
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Primary Negotiables
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The agreed upon or assumed negotiables in the negotiation (money)
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Alternate Negotiable
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Anything but money
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Propose conditionally when you need to
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Break an Impasse
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Triangulation method
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Same question, three different ways, not at the same time
