Are you apprehensive about the negotiation phase during professional meetings? Do you need tips and techniques to gain confidence and negotiate like an ace? Imagine arguing like a pro, removing blockages and finally signing the contract! In our negotiation strategy article, we give you the most formidable approaches so that you can put an end to losing professional appointments.
Why adopt a negotiation strategy?
Negotiations, also called talks, are a delicate step in the sales process. Indeed, you have to be full of resources to know how to convince your interlocutors that they need your article or your service, without forcing their hand. The final objective of a negotiation is of course to conclude the sale and to create a cooperation between the company and its partners over the long term.
There are several methods of negotiation which make it possible to find a compromise during a discussion and to satisfy the actors present. The objectives of signing a contract are multiple, however generally it is a question of boosting the sales and the turnover of the two interlocutors.
Cooperation strategy vs competition strategy, what are the differences?
In negotiation, there are two main approaches: cooperation and competition. The difference is the way of approaching and exchanging with the customer. Indeed, the cooperation strategy employs a benevolent and open register, on the contrary, in the competition there is a real balance of power which is established between the negotiator and his interlocutor.
The cooperation strategy
Concretely, cooperation is always the most recommended technique for building a relationship of trust with your client (especially in btob). The principle is simple, you are looking for an agreement to satisfy everyone. As a negotiator, you are flexible and give your prospect the advantages they need to take a stand.
In this situation, the two parties think together about different options in order to find a win-win agreement. Active listening, exchange and empathy are the means used to discuss. You rely on human contact and you seek to remove the blockages of your interlocutor in order to meet his needs.
All areas of your work are covered in detail:
- Price ;
- Options offered;
However, keeping an interesting margin remains essential and is part of the game. Most of the time, it is a cooperative commitment that binds providers to companies.
What are the 5 formidable strategies to adopt to succeed in your negotiation? To discover in the rest of the article!
The competition strategy
When you switch to confrontation strategy, the register is no longer the same . Besides, not everyone can use it correctly. It depends on the personality of the negotiators. Indeed, you have to be confident and particularly daring for this. Your approach is aggressive and you seek to establish a real balance of power between you and your client.
This situation is comparable to the relationship exercised by a manager who manages his team with authority. You try to destabilize your client using several tactics. Here, it is no longer the exchange, active listening and understanding that take precedence, but the psychological aspect. Concretely, it’s the most intimidating part of taking the lead in the balance of power and getting what it wants.
However, this approach has serious consequences. Indeed, with aggressive sales techniques, you are not creating a long-term partnership, but rather you are aiming for the one-shot. Distrust therefore, it is better to try to find a win-win compromise and advocate trust with your prospects.
Negotiation strategy: which are the most formidable?
1. Put people at the center of attention
Rather than staying focused on the financial part, highlight your human qualities and the nature of your relationship. The goal is to keep the human aspect at the center of the negotiations, in order to influence the company’s decisions.
Indeed, if you maintain extremely friendly relations, you are playing on the emotional card. Your interlocutor appreciates you and is therefore ready to listen to you and consider your proposal.
However, this method is more effective if you have been working with the company for some time. If it is a first date , the task is more complex, however, if you are open, smiling and accommodating, the decision-maker may lean in your favor and entrust you with the management of his website, for example.
2. Grant exceptional treatment
This strategy aims to give the prospect a privileged partner status. Indeed, during negotiations, the opposing party may make complaints about your services or products.
In order to improve the user experience of your customers, depending on your commercial leeway, you can grant additional benefits. But, exceptional treatment isn’t just about the little perks you offer. It’s a more global mindset to personalize all your contacts by taking into account your prospect’s preferences and individuality.
Everyone wants to be considered, respected and privileged!
It is an effective negotiation strategy which proves your motivation and your interest in the activity of your interlocutor. This way, you are more likely to stand out and be chosen!
3. Adopt the win-win strategy
As its name suggests, this negotiation strategy consists of finding an agreement that satisfies both parties. It is an effective method, regardless of the stakes of the exchange. Indeed, the win-win or win-win strategy takes into account the needs and interests of both parties.
They do not remain stuck in their position, but explore and deepen the expectations and problems of each, in order to propose appropriate solutions. This strategy is based on a fair exchange, understanding and empathy.
4. Use the package selling strategy
It is a trading strategy that consists of selling more than the expected quantity, while offering a discount on the lot. The more your customer buys, the less he pays per unit! The batch sale can be made for goods of course, but also for benefits and services.
This method cannot work with all professionals and it is better to apply it when you are negotiating with a large group or a booming company. You introduce a phrase such as: “How about paying €1,400 instead of €2,000 for a service? This is the exclusive rate that I offer if you take 3 training sessions instead of one. »
Warning ! When you want to sell more, it is essential to offer an attractive price to your customer without encroaching on your margins! It is a strategy that requires thinking upstream, in order to define the perfect price that could influence the position of the opposing party.
5. Opt for the MeSoRe strategy
Also called BATNA (Best Alternative To a Negotiated Agreement), the MeSoRe method comes to us from the United States and more particularly from Roger Fisher and William Ury, two researchers specializing in negotiation strategies. MeSoRe means Best Fallback Solution and allows you to win even if the deal is not concluded.
Concretely, it is a question of thinking upstream of the negotiation, of a method of withdrawal so as not to accept an unattractive offer, nor to leave completely losing. To illustrate this, imagine that you have an appointment with a client to offer your services. You really hope to close a deal with this customer, because it will greatly increase your turnover. However, your client objects because he does not currently have the necessary budget to afford your services.
This is where the BATNA method comes in. Have you thought about a fallback solution upstream that allows you to conclude a win-win agreement? Instead of offering a reduction in price or quality of service, you suggest that the customer spread the payment over several months. He doesn’t have to pay a substantial sum all at once and you haven’t reduced your margin.
Also set yourself the limits not to cross. If the negotiators of the box accept your second deal, but ask you to be present very regularly at the start to train the teams in the new equipment, is this a possibility that would suit you? Consider the most effective fallback options Anticipate the opposing side’s position.
Negotiation strategy to close
- There are two major negotiation approaches in opposition: cooperation vs. competition. The first advocates discussion, active listening and empathy. Each party presents its current needs, but also its problems. The discussion is benevolent and human-oriented. The second is based on intimidation. It’s about taking the lead in the conversation and imposing your conditions.
- Placing people at the center of attention consists in betting on the relationship you have or can have with your client. Show her that you are responsive and accommodating. In addition, be smiling and do not hesitate to discuss subjects other than professional ones.
- Giving exceptional treatment is effective in making the customer feel privileged and convinced to make a deal. Indeed, if you give him a service, a rate and you specify that you usually don’t do it, but that for him, you will try, you let your client take over.
- Among all these strategies, the win-win (win-win) is the one to be preferred. Indeed, it allows you to establish a solid foundation for creating a long-term relationship of trust with your client. It is about maximizing the interests of both sides.
- Selling in lots allows you to sell more than the starting quantity. To do this, offer an attractive unit price.
- The MeSoRe strategy consists of thinking upstream about a fallback solution in order to come away a winner even if an agreement has not been reached.
Negotiation strategy to summarize in 4 questions
What are the types of negotiations?
There are two types of negotiation: the soft method, the cooperative method and the competitive method.
- The first is to exchange fairly in order to identify the needs of your client and find an agreement that suits both parties.
- The second is the more aggressive trading strategies. Neither side yields to objections, listening and exchange are not there. It is above all a question of imposing one’s will by force and intimidation.
What are the steps of the negotiation?
Here are the steps to adopt effective trading strategies and lead to a transaction:
- The upstream preparation phase. It is a question of collecting information relating to the company, but also to the decision-makers with whom you have an appointment.
- Making contact where you need to make a good impression. Be punctual and sign your pace! Plus, a smile is always more engaging!
- Researching customer needs. Determine precisely what their expectations are and anticipate any blockages.
- The argument. It’s time to reveal your talents of eloquence and denounce the advantages of your product, service. This is also the stage during which you seek to overcome the customer’s objections in order to reach an agreement.
- The conclusion of the negotiation. Either you succeed in concluding the negotiations with a sale, or you fail. However, remain optimistic, rework your offer and try your luck again in some time.
What are the objectives of the negotiation?
Negotiation is a stage of the sales process whose goal is to find an agreement to sign a contract. There are several ways to negotiate, but generally, it is a question of taking into account the expectations, the needs and the problems of each party in order to find solutions and find a balance.
How to make a negotiation strategy?
To implement a formidable negotiation strategy, make sure you know precisely the objective you are aiming for. Then, find out about your interlocutors and their company and think about an effective means of fallback, which allows you to be a winner in all cases.