Inked

1. Master Sales Negotiation: The Art of Winning for Your Team

Sales negotiation is about winning for your team while minimizing resentment at the same time; in sales, relationships matter.

Winning is paramount. Sales negotiation is not about creating "win-win" outcomes, but about securing the best possible deal for your company while preserving long-term relationships. This requires a delicate balance of assertiveness and empathy. Effective negotiators focus on:

• Protecting profits and commissions
• Delivering value to customers
• Maintaining positive stakeholder relationships

Resentment is toxic. Avoid negotiating tactics that create bitterness or contempt, as these emotions can poison future interactions and erode customer lifetime value. Instead, strive for outcomes that satisfy both parties' core needs and motivations.

2. Win First, Then Negotiate: Timing is Everything

Negotiation begins after the sales process ends and begins when the buyer or stakeholder group has selected you as the VOC.

Vendor of Choice (VOC) status is crucial. Attempting to negotiate before being selected as the preferred vendor weakens your position and often leads to unnecessary concessions. Key strategies include:

• Focusing on building value and differentiation throughout the sales process
• Recognizing implicit and explicit signals that you've been chosen
• Resisting pressure to negotiate prematurely

Avoid red herrings. Early attempts by buyers to discuss price or terms are often distractions. Use the PAIS framework (Pause, Acknowledge, Ignore, Save) to maintain control of the conversation and preserve your leverage for when it matters most.

3. Emotional Discipline: The Cornerstone of Effective Negotiation

In every negotiation, the person who exerts the greatest emotional control has the highest probability of achieving their desired outcome.

Master your emotions. The seven disruptive emotions that can derail negotiations are:

1. Fear
2. Desperation
3. Insecurity
4. Need for significance
5. Attachment
6. Eagerness
7. Worry

Develop emotional resilience. Techniques for maintaining composure include:

• Practicing relaxed, assertive confidence
• Using the "ledge technique" to create a mental pause
• Leveraging noncomplementary behaviors to disrupt negative patterns
• Building "obstacle immunity" through intentional exposure to challenging situations

Remember that willpower and emotional discipline are finite resources. Avoid negotiating when tired, hungry, or emotionally drained.

4. Leverage and Power Position: Shaping the Negotiation Chessboard

Buyers are almost always in a stronger power position than sellers.

Understand the power dynamics. Buyers typically have more alternatives and less urgency, giving them an inherent advantage. To strengthen your position:

• Build a robust pipeline to reduce desperation
• Eliminate or neutralize the buyer's perceived alternatives
• Leverage scarcity and urgency when possible
• Develop strong relationships with key stakeholders

Use leverage wisely. Leverage is any asset that can compel behavior change. Never give it away for free; always exchange it for something of equal or greater value. Types of leverage include:

• Information
• Scarcity
• Relationships
• Time pressure
• Unique capabilities or solutions

5. Discovery: Building an Unassailable Business Case

Except for putting the right deals into the pipeline in the first place, nothing else in the sales process has a greater impact on your position at the sales negotiation table than effective discovery.

SCORE framework for discovery:

• S: Stakeholder success criteria
• C: Criteria for vendor evaluation
• O: Desired business outcomes and metrics that matter
• R: Real state situation
• E: End state vision

Dig deep. Effective discovery requires patience, strategic questioning, and active listening. Focus on:

• Uncovering hidden motivations and pain points
• Identifying metrics that matter to stakeholders
• Building a compelling value proposition based on measurable business outcomes

Use the information gathered to create a strong business case that differentiates you from competitors and neutralizes alternatives.

6. The DEAL Framework: Navigate Sales Negotiations with Confidence

Sales negotiation plans, like most battle plans, rarely survive first contact.

DEAL framework for agile negotiations:

1. Discover: Clarify and isolate issues
2. Explain: Bridge to value and justify your position
3. Align: Deploy your Give-Take Playlist
4. Lock: Secure commitments and get ink

Prepare thoroughly. Develop a Sales Negotiation Map (SNM) with:

• Target and limit zones
• Concession inventory
• Give-Take Playlist (GTP)

Be ready to adapt your strategy in real-time while maintaining focus on your objectives.

7. Align and Lock: Securing Agreements and Getting Ink

If you want to succeed in sales negotiations and get ink consistently, you must master the discipline of asking.

Master the art of asking. Confidently and directly ask for commitments throughout the sales process, especially when aligning on agreements. Common methods for locking down deals include:

• Obtaining payment
• Securing signed agreements or purchase orders
• Confirming verbal agreements with a handshake (when appropriate)
• Using letters of understanding (LOUs) for complex negotiations

Avoid assumptions. Just because a buyer nods or says "yes" doesn't mean you have a firm agreement. Always clarify and confirm specific terms before considering a deal closed.

Remember, there are no silver bullets or magic phrases that guarantee a close. Success comes from disciplined practice, emotional control, and a willingness to ask for what you want.

Last updated: August 19, 2024