Selling Is Negotiating | Sales Negotiations Articles

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Selling Is Negotiating

As senior executives look for ways to increase the effectiveness of sales in an increasingly volatile,
commoditized world, they have a unique opportunity to help their business development and sales
support teams negotiate effectively with customers. We recommend a strategic, win-win approach
that recognizes selling as inseparable from negotiating.

The basic goals of selling and negotiating are identical: Understand what the customer or other
party wants to accomplish, fix, or avoid, gain commitments from all stakeholders that move the
parties to agreement, and then close the sale or negotiation. In a win-win scenario, the solution
is designed jointly by all parties so that everyone is involved in satisfying the greatest number of
interests of all sides in the negotiation.

For those executives who want to augment the negotiating skills of their teams, we also recommend
a system for “managing” negotiations. Negotiation approaches that emphasize tactics designed to
exploit advantages and extract concessions most often result in damaged business and personal
relationships.

Given the competitive environment in which most companies operate, we prefer an approach to
negotiating that starts with a clear strategy and plan designed to build agreements that benefit all
stakeholders to the greatest degree possible.

Major tasks for most business development teams include communicating new and existing products
and services to prospects and customers, facilitating communications between customers and sales
support staffs, and building trust between the stakeholder groups. It is always a shame when
well-intentioned marketing and sales efforts are sabotaged, and relationships damaged, by inadequate
or harmful negotiating skills that are employed at the agreement stage of the sales process instead of
throughout the sales interactions.

Well managed negotiations move to higher ground: Joint venture problem solving that satisfies the
greatest number of interests of the parties, builds confidence, trust and loyalty, and expands the
current and future opportunities for all stakeholders.
The alternative is business as usual, where the game is zero-sum and where dissatisfied parties
continually switch allegiances, leaving everyone less than satisfied with the process and with the
outcome.

We use a five step process for building effective negotiation strategies. First, the current situation,
including overall strategy, immediate challenges, and team skill levels are assessed. Next, company-
specific solutions are designed, incorporating the proven tenets of win-win negotiating. Solutions
are then deployed to the business development and support teams via online and classroom
environments as appropriate. Since managers play such an important role in an initiative’s ultimate
success, a plan for managing and coaching business development and support teams should be
provided to mangers who will be accountable for the results produced by their negotiating teams.
Finally, a system for reviewing and reporting results is implemented. Senior management will then
receive timely information they can use to refine strategy and objectives.

Negotiating can be much more than traditional haggling, positioning for advantage and winning at all
costs. For those senior executives willing to equip their business development teams for managing
negotiations, a win-win approach to negotiating provides an opportunity to better understand
stakeholders, build or enhance long-term relationships, and deliver the total value their companies
bring to the table. The goal of a successful negotiating system for the progressive enterprise is to
move from negotiation opponent to joint venture partner, where all stakeholders benefit and grow
together.

Because selling is inseparable from negotiating, a successful negotiation process should include
more than negotiating skills. It should also include tools and relationship-building skills that help
business development and support personnel develop customer account strategies, organize sales
call and negotiating plans, and delivery skills that allow them to clearly articulate the organization’s
value.

About the author: Steve Chriest is the founder of Selling Up™ (www.selling-up.com), a sales consulting
firm specializing in revenue and sales improvement for organizations of all types and sizes in a variety of
industries. He is also the author of Selling The E-Suite, The Proven System For Reaching and Selling
Senior Executives and Profits and Cash – The Game of Business. You can reach Steve at
schriest@selling-up.com.