Doing business is all about making successful deals happen and negotiating them effectively. Getting deals done right says something about your own personal negotiating capabilities, but most importantly, it speaks volumes for your company’s brand.
By following the following five simple tips, you get a better sense of what to do before entering the process of making a deal.
- Understand what you are selling: Make very sure you understand your core business. You can only negotiate what is there and what will ultimately be delivered. Understand what people can do within your firm, or what your software is really capable off. Only when you truly understand your capabilities, can you negotiate the best deals for your firm.
- Be aligned with your internal team: Make sure that your team is aware of your progress when entering negotiations. You do not want them to walk into your line of fire because you need to be in control. If you are not aligned internally, then don’t make a deal. If you do not have the support of your team to deliver what you are selling, you are in serious trouble. No one wants to work with a sales person who sells hot air then runs for the hills once the deal is done. You sell a bad deal your firm can’t deliver; you will quickly inherit a terrible reputation that you could get stuck with for a very long time. So make sure your internal agenda is in order before starting the negotiation process. I use the parent approached here. Daddy said no, and so did Mom.
- Know your competition: Make very sure you understand the competition in your core business. Know what they offer and their pricing and services that come with it. Never take someone else’s word for it – make sure you know what you’re up against. Deals are often made based on trust, but trust is earned and is never based on assumptions. And really make sure you sell your firm’s value, not just try and react to what your competition is selling (or what your client is claiming your competition is selling). It is not always possible to compare apples with apples, but you need to be able to explain your own firm’s value and approach – and do it very effectively.
- Stick to your plan: Never abandon your calculations. This has nothing to do with ego, although people love to play that card. Ego should never be part of negotiations. Only inexperienced people use their egos or job titles, and they always fail in the long run. If you take your clients’ and your own business seriously, your negotiating plan will always back up the numbers.
- Make sure it is all about doing business: Don’t you ever make it personal. There is no “me” in negotiations. You deal in the “we” form because it is never personal. Unfortunately, there are many people out there that like to annoy you, but if you follow steps one through four, you will frequently achieve a very positive outcome.
So always stay true to yourself and your company’s values. Keep communicating and only sell based on value. In the end, personal value and business values are the most important aspect of deal negotiations. Value is in the mind of the buyer. If it is not, why are we negotiating?
Posted in : Talent in Sourcing
