You may have heard the buzzwords ‘Sales Velocity’ recently, but what exactly is it and how can your negotiations impact it?  Sales Velocity is described as how much money you are making and how quickly are you making it.  More simply put, if you consider driving, driving velocity is expressed in miles per hour.   Sales Velocity is expressed as money per day.

Companies often come to Think! facing a major negotiation hurdle.  Oftentimes, the hurdle is based on perception:  they are intimidated by negotiation, they misdiagnose power or they freeze when they encounter a tactic for which they are unprepared.  The problem is that when we're unprepared, we're much more likely to give in to perception versus reality.  Let's look at some of the traps that are keeping us unprepared or ill-equipped to deal with our buyers' tactics.

The first step in creating value through trading is the pre-work to understand what the ideal trading items are.  It is this pre-work, in fact, that actually enhances the value that is being negotiated in a deal versus simply shifting value from one party to another.  Creating value for trading is actually good for both sides.

Tiger Woods has said that he is in a quest to constantly improve and be the best – I think he made it!  How does he do it? By keeping an open mind to new ideas and concepts, then applying the concepts and practicing.  In Woods' case recently he needed an open mind to a new grip and a new stance.  Once he had these, then he practiced, practiced, practiced.  Practice builds confidence. So how does this apply to business negotiation, you ask?

For many years, we have been asking our global clients for the most common and most difficult verbal negotiation tactics they face every day.  Their buyer's comments many sound different, but they all have one thing in common.  Whether buyers are asking for a price discount, an extended warranty or some other concession, the message is loud and clear:  they want something, they want it now and they want it for free... or less!  From our research and from what we have observed, they are very likely to get it!

Here's what your peers are reading about B2B negotiation:

Negotiation is a very strategic issue.  At the highest level, the business deals that a salesperson completes during the year roll-up and actually become that brand. The way you negotiate your business deals around the world is either a deposit to or a withdrawal from your brand equity.

Thought I'd share with you this information about an upcoming, complimentary webinar from IACCM about something near and dear to our hearts, the business value conversation.  Take a look below at the webinar description from the IACCM website:

Sometimes when a customer chooses ‘No Decision / Business As Usual’  they are making the right decision for their organization at that specific time.  Typically customers evaluate each potential project or initiative (either to address a problem or to act on an opportunity), prioritize the projects, and allocate available funds and resources according to project priority.  ‘No Decision / Business As Usual’ results when the proposed project does not reach a high enough level of priority. 

Think! Inc. provides research-based negotiation training for buyers. We help Procurement professionals become more successful negotiators. All the countermeasures, tactics, behaviors, tips, tricks and gimmicks typically taught by negotiation "training" or other "experts" may be helpful hints, but they are not a blueprint for successful negotiating. In fact, they have few, if any, long-term, positive effects on the negotiating skills of an individual or the negotiating competency of an organization. A company training its Procurement professionals in such a traditional soft skills approach to negotiation cannot expect much improvement in negotiation effectiveness.