As an ex-professional buyer, negotiation is always a fascinating topic for me. Whenever I’m working with salespeople or business owners, they often fail to get the price for their products or services that they wanted — and often get even less than they deserve.
And the pressure is even greater in today’s market conditions — where savvy buyers are looking to get the best value when they’re purchasing. Therefore to get good results, the salesperson or business owner has to be able to stand their ground in a negotiation in order to get the price they deserve. Sadly, this often doesn’t happen.
So why is it that the buyer often has the upper hand when it comes to negotiation?
Reason one: They’re better prepared to negotiate
One simple reason is that the buyer is often better prepared to negotiate than the salesperson is. Often a salesperson gets caught up in a negotiation when they aren’t ready for it.
So if you think that a meeting or phone call could result in a negotiation, make sure you prepare for it beforehand. If a negotiation starts before you’re ready, don’t be afraid to postpone it and re-schedule it for another time when you’ve had chance to prepare.
Reason two: You’re too desperate
Another typical reason that salespeople struggle to get better results from their negotiation is that on most occasions, they’re so desperate to win the deal that this comes across to clients, and they use that as leverage to swing the negotiation in their favour.
Prospects and clients can smell desperation and it certainly isn’t attractive. Once a client knows the salesperson is more desperate to do the deal than they are, that just gives them the green light to get the best deal they can.
It’s about time that we realised that prospects and clients often want to do the deal as much (or sometimes even more) than we do — but often we don’t know it.
Reason three: You fail to spot their tricks
Any buyer or decision maker worth their salt will attempt to play tricks during a negotiation. If you can spot these and deal with them, then you’re usually fine. However, most salespeople aren’t even aware what the other party is doing and end up falling for them.
You need to learn how buyers and decision makers operate so that you can deal with their tricks and handle their objections.
Reason four: You don’t know enough about the other party
Another reason salespeople often come off worst in a negotiation is that they fail to find out enough about the other party before the negotiation starts. The decision-maker may well have strong reasons to purchase now. Very often there are pressing issues that mean they want a quick deal. But if the salesperson doesn’t know this, then they lose the advantage.
Reason five: They have more skills than you
Think for a moment: When was the last time you went (or sent a member of your team) on a professional negotiation skills course, lasting for, say, one to three days? Possibly never.
Think about the other side: If they’re a professional buyer, you can guarantee that they will have been on such a course. If they’re a key decision-maker in a business, they’re also likely to have been on a similar course. At the very least, they’re far more experienced at negotiation than you!