B2B Street Fighting Blog

three rules for creating value in business negotiations

Posted by Marie Dudek Brown on Mon, Jan 23, 2012 @ 01:39 PM

business negotiation creativityThere's an element of creativity involved when you broaden the business deal and clarify the "it" you are negotiating.  A world-class salesperson looks for avenues to add value to the deal being negotiated.   

There are three very important rules in regard to creating value in a negotiation.  The first concerns the meaning of value itself, which is expressed as Value = Benefit - Cost. We've all, of course, heard about sales processes that are supposed to add value but hardly ever succeed in creating real, measurable business value. A strategic negotiation process does succeed though, because it enables you to add "hard" value (value you can measure) rather than "soft" value.  If you can't put a potential trade through the equation above, you're not creating value.

The second rule is Never concede - always trade. If you simply concede on an item during a negotiation, you are eliminating the possibility of creating value because value is created by trading items that have differing importance to the two sides in a business negotiation.

The third rule is Never negotiate one thing by itself.  If you negotiate one item at a time, you will soon find that you don't have any other items with which to trade.  If you can't trade, you can't create value.

Listen to this short video interview of Brian J. Dietmeyer, Think! Inc. President and CEO on price negotiations.

Tags: business negotiations, brian dietmeyer

Think! named to Inc. list of
America's fastest growing private companies

Think! named to Inc. 500|5000

about this blog

The B2B Street Fighting blog brings you the latest on what's happening in the real world of business negotiation.

Contact Think!

get NEW posts
delivered to you

our must-read books on business negotiation

Whether you are in sales or procurement, we have the books you need to read.

For sales professionals:

B2B Street Fighting

For procurement professionals:

negotiation blueprinting for buyers

 

Sales-Negotiation-Training-