Key Negotiations Points Flashcards
Point 1
Know in advance what discounts are acceptable, and what are not, BEFORE you start negotiating. Don’t offer or give away something you can’t afford to do.
Point 2
Let the prospect go first. Imagine if all they need is net 90 terms, and you just gave away an additional 20% of the sales price.
Point 3
NEVER give a range! “I can maybe do a 15-20% discount.” Who would accept 15% if the range is 15-20%?
Point 4
Don’t split the difference. If they ask for 50% off and your first counter is to split the difference (25% off), he may have been fine with 15%, but you will never know.
Point 5
Never put anything in writing until the deal is agreed upon by everyone. Always qualify with this specific language: “So, are we in agreement that if I give you a 10% discount and net 60 terms, you will move forward on the purchase today?” Once agreed, then write up the deal.
Point 6
Only negotiate with the actual decision maker. This may seem obvious, but negotiating with the wrong person will not end with a commitment to purchase. It ends with that person having to check if the decision maker will agree. Get the decision maker into the negotiation and avoid having that via between you and him or her.
Point 7
Get something in return. Examples: They get a discount, we get the order before End of Month. They get ½ off, they need to commit to do a case study with us.
Point 8
Negotiate beyond just money. You can offer terms, free swag (T-Shirts, books, Kevin’s collectible business card etc…), additional months, etc… The less you discount, the higher your income. By the way, people love Freebies.
Point 9
Keep the conversation light. Maintain your position, but also maintain your consultative approach.
Point 10
Be prepared to walk away if necessary. If demands become unreasonable or unprofitable, be prepared to walk away from the deal. A desperate Rep is a dead Rep.
