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  • Writer's pictureEric Doherty

Negotiation Skills for Technology Salespeople: Maximising Outcomes without Compromising Quality




In the realm of sales, the importance of negotiation cannot be understated. It's a delicate balance between securing the best possible deal for your company and creating a satisfying experience for the client. For salespeople, tasked with selling enterprise technology solutions to resellers or enterprises, they often find themselves negotiating with experienced product managers, network managers, and professional procurement teams. This article outlines the crucial steps to effective negotiation, helping you maintain profit margins, extend contract terms, and even leverage these negotiations for brand promotion, while preserving positive relationships with clients.


Preparation: The Foundation of Successful Negotiations


1. Understand Your Client: Before stepping into a negotiation meeting, familiarize yourself with your prospect's business landscape, their buying power, their pain points, and the alternative solutions they might consider if your negotiation falls through.


2. Know Your Product: Be conversant with the unique features, benefits, and value propositions of the cybersecurity or network management software you're selling.


3. Define Your BATNA (Best Alternative To a Negotiated Agreement): Understand the line beyond which it's no longer beneficial to negotiate. Without this understanding, you risk losing leverage and potentially settling for a deal that's not in your best interest.


4. Understand Their BATNA: Identifying the client's alternatives provides insights into their negotiation power and flexibility.


5. Set Objectives: What are your negotiation goals? How much discount is acceptable? What contract terms are you aiming for?


6. Prepare Concessions: Understand your position regarding price and other concessions. Interestingly, cost, as a negotiation success metric, is reportedly used 12 times more frequently than quality. Therefore, before meeting with your prospect, set clear boundaries on price discounts, freebies, or other add-ons.


During the Negotiation: Tactics and Techniques for Success


1. Allow Silence, Listen First: Let the prospect start the conversation. By listening first, you better understand their position and use that knowledge to your advantage.


2. Communicate Value, Not Price: Instead of quoting a price range, specify one number and adjust as necessary. Your focus should be on showing how our solutions can address their challenges and add value to their operations.


3. Avoid Early Concessions: If you concede too early, they may expect more concessions later on. Patience is key. Make concessions strategically, showing them you're giving up something valuable.


4. Resist Temptation to Split the Difference: Contrary to what you might think, offering to "split the difference" usually causes more harm than good. Aim to offer slight discounts that keep the price close to the original value.


5. Be Respectful and Composed: Maintaining composure is a vital part of successful negotiation. Losing your cool can undermine your position and make you seem less agreeable. Remember, negotiation is a relationship-building process, and you want to make a good impression.


6. Ensure Decision-Maker is Involved: Negotiate directly with the decision-maker. Otherwise, you risk having to renegotiate multiple times up the chain of command, which can be disadvantageous.


7. Maintain a Win-Win Balance: Negotiation is a two-way street. As a salesperson, you should not be the only one making concessions. Strive for an outcome where both parties feel they've gained something.


8. Leverage Joint Press Release: When a significant concession is required, propose a joint press release. It can be an excellent way to promote our brand, highlight the benefits of our software, and demonstrate the client's commitment to quality and security.


9. Focus on Long-Term Relationship: Avoid hostility or aggression that might sour the relationship. Keep the conversation light and jovial to maintain a positive relationship with the prospect. Aim for a win-win situation, fostering a long-term relationship beneficial for future negotiations.


10. Know When to Walk Away: Don't be afraid to leave the negotiation if the prospect's demands become unreasonable. A customer who pushes for significant changes or a drastic price drop might not see the value in your offering.


Post-Negotiation: Consolidate the Win


1. Document Agreements: Hold off on recording anything until the meeting ends and all parties have verbally agreed on the terms. This allows you to propose and dismiss options without committing to anything prematurely.


2. Follow Up: Send a summary of the agreed points and next steps. It reaffirms your professionalism and reduces chances of misunderstandings.


3. Reflect and Learn: Evaluate the negotiation process. Learn from the successes and areas for improvement to refine your negotiation skills for future situations.


In summary, the art of negotiation is an essential skill for any salesperson. If you can maintain composure, lead with empathy, understand your product's value, and communicate effectively, you'll be better equipped to succeed in your negotiations and bring the best outcomes for yourself ad your organisation.


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