Sales negotiation is different than traditional negotiations in that it always includes a buyer and a seller. This article takes a surface level look at what the sales negotiation process consists of to help your salespeople know what it takes to close the deal.

ne·go·ti·a·tion

noun: discussion aimed at reaching an agreement

1. Any agreement between any party
2. Does not typically contain an informal component
3. Results are typically not measured by sales
4. Success is not exclusively monetary

 VS

sales ne·go·ti·a·tion

noun: discussion that concludes the selling process and is aimed at reaching an agreement between buyer and seller

1. Always includes buyer and seller
2. Almost always includes a financial component
3. Final stage of the sales process, not the process
4. Contains an informal and formal component
5. Success almost always yields a closed sale
6. Livelihood is directly linked to negotiation effectiveness

For ease of understanding, we’ve broken down sales negotiation into a formal component and informal component.

Informal Negotiation Stage

• Step I: Prospecting
• Step 2: Meeting etc.

Negotiation should be tied to the second formal negotiation process

Formal Negotiation Stage

• Exchange Information
• Negotiate Reach Consensus/Sign Agreement
• Deliver on Agreement