When you have a deep and broad understanding of your total value proposition and how important that value is to your prospect, you will not be the least bit fazed when he sits back, folds his arms, and announces: “Your competitor will give it to me for 20 percent cheaper.”  When he hits you with this zinger, he probably doesn’t know what he’s talking about. It’s up to you to enlighten him...

"The ability to tactically engage others in the face of impending power implosions and redirect potential negative and destructive energies toward a greater positive outcome is the mark of a true leader in today’s workplace," states Dr. Jeffrey Magee.  He continues with, "It’s all about egos, competitiveness, saving face, and not being seen as the one having to make a concession that leads to a need to win at any cost!  Many times it is this cost of power struggles that, in the final accounting, leads to significant loss of true gains and wins for the greater whole because individuals get caught up in the minutia of petty struggles. And from there, a pattern develops whereby struggles become the norm."

Some very exciting news to share with you!  Think! has been named to the 2012 Inc. 500|5000 list of the fastest-growing private companies in the United States. Brian Dietmeyer, President/CEO of Think! states,

One of the many ways that a negotiation can be intentionally or unwittingly anchored is through the sales process.  For example, if in the sales process you've done a great job of anchoring on selling the total value of your company's solution to the customer, in all likelihood that's the kind of package you'll end up negotiating.  On the other hand, if in the sales process you've only called on the lowest-level purchasing agent, and she's been pushing hard for you to offer them the lowest price, price is most likely what you'll end up negotiating.  The old adage "You negotiate what you sell" is true.  The quality of the sales process does have an impact on how easy or difficult the negotiation is.

A Harvard Business School study in 2009 evaluated forty-five companies and determined that the most significant negotiation problem they faced was the internal negotiation between and competing needs of silos, that is, a lack of internal negotiation alignment.  Each silo (legal, pricing, marketing, sales, product managers) viewed the negotiation through its own lens rather than viewing it holistically.  The study found, for example, that legal departments were simply redlining contracts in an effort to reduce risk to zero without factoring in or weighing the reward, and then adjusting risk profiles accordingly.

Contrary to popular belief, buyer behavior follows certain patterns. In fact, our primary research, as well as subsequent work with our clients, shows that 97% of buyer behavior in sales/negotiation can be anticipated. And that means a company can develop strategies to deal with it.

“The problem with many sales organizations is they still operate with the same principles and techniques they were using in the 60’s, 70’s and 80’s. While the technology supporting sales process have clearly evolved, the traditional sales strategies proffered by sales gurus 20 or 30 years ago have not kept pace with market needs. They are not nearly as effective as they once were, and…in most cases they are obsolete.” states Mike Myatt in “To Increase Revenue Stop Selling” (Forbes, May 1, 2012).  

It's important to bear in mind that just because a customer asks for something in a business negotiation, it doesn't mean you have to respond.  Buyers sometimes make truly outrageous demands, but that's no reason for you to go back to headquarters to ask for whatever it is they're demanding.  The important thing to remember, regardless of how outrageous the request may be, is to not get emotional about it.