New and Experienced Entrepreneurs Must Hone Negotiating Skills
Virtually everyone in sales is required to negotiate. After conducting hundreds of workshops and working with thousands of people during the last decade, I have discovered that most sales people are not as effective at negotiating as they could be.
However, I do come across great sales negotiators from time-to-time and have noticed that they typically have a few things in common. Here are the characteristics they usually possess.
Understanding of the Negotiating Process
Highly effective negotiators recognize that negotiating is a process, not just something that is done when discussing the terms and conditions of a solution. Negotiating is much more than haggling about price. It requires an understanding of the dynamics that affect the process and influence the behavior of people. Great negotiators invest time learning different tactics and strategies and how each technique contributes to the overall outcome.
Focusing On Win-Win
Win-win means that both parties feel good about the outcome of the negotiating process. Some books that state win-win solutions are not possible in business negotiating; the authors write that people usually give away more than they should and the outcome becomes a win-lose situation. Great negotiators don't believe that. They help their customer try and solve problems and look for opportunities to give as much value as possible. They also know how and when to limit their concessions, give-aways, and discounts so they can work out an agreement that is equitable for both parties.
Patience
Too many people search for the quick fix and try to close the sale as fast as possible so they can move on the next prospect. Great sales negotiators recognize that patience is a virtue and that rushing the process often leads to an undesirable outcome. They don't hurry to reach an agreement. Instead, they take time to gather the necessary information. They think carefully about possible solutions. They take their time during the entire process. This is critical because major mistakes are made when trying to reach an agreement too quickly, often ending up with outcomes that are win-lose.
Creativity
Most great negotiators are also very creative. They use their problem-solving skills to determine the best solution and look for unique ways to achieve their goal. A friend of mine was once embroiled in a bitter lawsuit with a company, and after months of negotiation, he came up with a solution that ended the suit. He stretched out beyond the normal answers and developed an alternative that was accepted by the other party. In other words, he got creative.
Willingness to Experiment
Negotiating is a very dynamic process because no two people are alike. What works extremely well in one situation can backfire in another. That's why great negotiators practice using a variety of concepts and techniques. They experiment with different strategies, solutions, and tactics. And a small failure does not prevent them from experimenting with new ideas in the future.
Confidence
Great negotiators are confident when they enter a negotiation. They aren't arrogant or rude or cocky — they are simply confident. They have developed a high belief in their ability to reach a win-win agreement. They are confident that they can handle anything that comes their way in a negotiation and this confidence is developed through experience. Great negotiators evaluate themselves regularly. They learn from their mistakes and victories. They focus on improving their skill. They develop an internal confidence that is unshakable.
Keen Listening Skill
People will tell you virtually everything you need to know IF you ask the right questions AND listen carefully to their answers. I personally believe that this one attribute is the most important skill in selling and negotiating. Unfortunately, too many sales people simply wait for their turn to talk, or even worse, interrupt their prospects. This lack of listening means they often miss hearing key information that will assist them in the negotiations.
Negotiating is not a skill that is easily acquired. It takes time, effort and energy. If you want to improve your negotiating ability you must be ready to work at it. Invest the time learning the dynamics and science of negotiating. And be prepared to push yourself out of your comfort zone. HBM
Previously published in the October 2007 issue of HOME BUSINESS® Magazine, an international publication for the growing and dynamic home-based market. Available on newsstands, in bookstores and chain stores, and via subscriptions ($15.00 for 1 year, six issues). Visit www.homebusinessmag.com
