Sales Negotiation: The Formal Component
Posted by Kallie Pechacek on Mon, Sep 13, 2010 @ 01:01 PM
In our last article we took a close look at the informal component of the sales negotiation process. Today, we'd like to to finish out the sales negotiation process by examining the formal component of the process to take your salespeople from preparation to close.
Formal Sales Negotiation
Preparation - 90% of formal negotiation is preparation!
- Clarify Objectives: Yours and Theirs
| Yours (Entire Organization) |
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Theirs (Entire Organization |
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| Issue#1 |
Issue#2 |
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Issue#1 |
Issue#2
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| Maximum |
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| Really Asking |
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| Least Acceptable |
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| *BATNA |
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*(Best Alternative to Non-Agreement) Essentially, the ruler you measure your buyer’s offer against. It is a dynamic and is a choice you make when you conclude that the negotiation will not yield a favorable result.
BATNA was developed by negotiation researchers Roger Fisher and William Ury of the Harvard Program on Negotiation (PON)
Exchange Information
- Exchange Information
- Negotiate
- Reach Consensus
- Close
Negotiate
- Big picture first
- Concessions
Reach Consensus
- Restate final conclusions (sale or no sale)
- Sign agreement
Close
- Close negotiation and deliver on service and or product
LET'S FACE IT...Like cars, social media, googling and all that jazz has made selling and marketing a pain in the butt. If you want advice for getting more out of your revenue hot rod you're in the right spot.