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Negotiation is an art, and mastering negotiation tactics can help you achieve your sales goals. According to a study by the RAIN Group, top-performing negotiators are three times more likely to achieve their pricing target and win 80% of sales.
Top sales negotiators know how to come in high on price and negotiate down. And besides securing agreeable deals, they are a gateway to building long-lasting business relationships.
So, how do you position yourself for success when negotiating a deal?
This article takes you through the ten essential negotiation tactics every salesperson should master to ace their next deal.
Read on to learn more!
Negotiation is critical in the sales process, where both parties strive to find a mutually acceptable solution. It’s a must-have skill for any salesperson wishing to maximize profit, win rates and repeat business.
The best negotiation tactics involve understanding what concessions you have to make, the sales incentives you can offer and what pricing wiggle room you have. You should also know how to frame your counteroffers, split up losses and combine gains.
However, negotiation strategies and tactics don’t guarantee success in all situations. Different tactics and strategies may be more or less effective depending on the specific circumstances.
When closing deals in the business world, a solid set of negotiation tactics and sales techniques acts like a cheat code. Their purpose is to bridge differences between parties and influence decision-making.
Here is how to use them effectively.
You establish and maintain trust with the other party by employing the best negotiation tactics. As well as creating a relaxed and open atmosphere for negotiation, trust is crucial for building a strong and successful working relationship.
Listening actively to the other party and fully understanding their position is an important part of negotiation tactics. It helps you identify common ground and potential compromises, allowing for a tailored sales pitch and an offer that meet all the needs.
Mastering negotiation tactics is the best way for any salesperson to gain an advantage or influence the outcome of a negotiation. Here are some common negotiation tactics to help land better opportunities and close more sales.
This is a classic negotiation tactic in which one negotiator takes a hardline stance while the other negotiator takes a more conciliatory stance. By playing off each other in this way, you can create a sense of contrast that puts pressure on the other party to make concessions.
The "good cop" is empathetic, understanding and willing to make concessions. On the contrary, the "bad cop" is firm, unyielding and less interested in compromise.
This tactic involves pushing the other party to the brink of collapse in order to extract better terms or concessions. It's a high-stakes strategy that can be risky because if the other party doesn't back down, it can lead to a negotiation breakdown.
If executed correctly, brinkmanship can effectively get the other party to agree to terms that otherwise might not have been possible.
The anchor tactic is about setting a position—an anchor—that you consider fair and use as a starting point. You’ll work from this point and the other party must compromise from the anchor point you have set.
Anchoring works well because it frames the discussion and gives the other party a sense of what is considered fair or reasonable.
The best alternative to a negotiated agreement (BATNA) is a negotiation tactic that involves identifying and preparing for the best possible outcome if negotiations fall apart. The tactic allows you to enter into a negotiation with an idea of what your walkaway point will be.
Knowing your BATNA prevents you from getting caught in a situation where you have to accept less than you're worth.
Remember that mastering the art of negotiation takes time and practice. It’s also important to be flexible and responsive to the other party's needs. And most importantly, don't be afraid to walk away if the deal doesn't feel right.
Negotiations can be a nerve-wracking experience, especially when there's a lot on the line. But with the right preparation, you can come out on top and even create a strategic sales plan to drive more sales for your company. Here are tips to help you get ready for your next negotiation session.
Before sitting at the negotiating table, ensure you know everything about the other party. This includes their goals, strengths, weaknesses and likely negotiating strategies. A perfect way to get started is to carry out a SWOT analysis of the other parties.
Use this template to fully complement your message by including high-resolution stock photos, icons, charts, graphs and more into the SWOT analysis presentations to your sales team.
With this information, you'll be better equipped to anticipate their next move and respond accordingly.
When things go wrong, we need always to be prepared. Plan B or a fallback plan when things go wrong is crucial as it means you can easily walk away from a deal and still maintain your value.
Your best alternative to a negotiated agreement (BATNA) is the option you'll turn to if the negotiation doesn’t go as expected. BATNAs can help you establish the reservation value–the worst possible offer a negotiator is willing to accept. You’ll be able to confidently walk away from the negotiation table, knowing you've got another plan.
Negotiating parties must understand one another's needs, values and interests to reach an agreement beyond the zone of possible agreement (ZOPA). There can only be a ZOPA if all parties accept some overlap.
For example, if you are willing to sell for $1,000, ensure the buyer is willing to pay the same amount.
Before you start negotiating, identify the range within which you would be willing to make a deal. This allows you to focus on the most important issues and avoid getting sidetracked by irrelevant details.
Contrary to many beliefs, making the first offer in a negotiation puts you in a better position. Starting with a number sets the tone for the rest of the negotiation and can put you in control throughout the negotiation process.
Giving your opening offer some thought sets a precedent for the rest of the negotiation, so it's important to give it some thought in advance.
Whether you’re communicating an offer directly to a pre-selected customer, or other organizations, ensure you have an opening gambit that steers the conversation in the direction of your choice.
Even better, you can make your offer appealing and attention-grabbing with a range of colorful presentation templates from Visme like the one below. These will help increase your chances of receiving a positive response.
We’ve got other presentation templates to give you an edge during negotiations.
Negotiations rarely go exactly as planned. So, you have to be flexible and willing to make concessions. Powerful negotiators know how to frame the negotiation conversation as a win-win opportunity so everyone is satisfied with the deal.
This eliminates the winner-loser power dynamic and allows the possibility of working together in future. When preparing for a negotiation, try to identify areas where you're willing to compromise and consider what you're willing to give up in exchange for getting what you want.
Mastering the art of negotiation can mean the difference between closing a deal and walking away empty-handed. Here are ten proven negotiation tactics that every salesperson should master before heading to the negotiation table.
Preparation is an underrated tactic for any negotiation. After all, it’s an unwritten rule for any salesperson not to go into a negotiation blind. You at least need a sales collateral and a grasp some key elements of the deal before going in.
For instance, you must have researched the prospect to understand their business, buying power and pain points. Learn more about their needs and information on industry standards and pricing before opening the negotiation.
This will equip you to make persuasive arguments and counter any objections. You can make your preparations more productive by incorporating Visme graphics to highlight your points better. With Visme, you'll find templates for strategy presentations, visual collaborations and more.
As a salesperson, there's a temptation to jump into the conversation after presenting the terms of the deal and offering a discount or adjustment. But there lies a fine line between being accommodating and being overly eager.
Give your prospect a chance to explain their position before making concessions. So, it's important to listen to them and hear what they say and use their words to guide your responses.
By actively listening, you can gain insight into their perspective and concerns and address them in your subsequent proposal.
Anchoring is a sales tactic where you establish a starting point for negotiations. This could be a high or low number, depending on what you think is appropriate for the situation. The goal is to anchor the conversation around your initial point so that the final agreement is closer to your desired outcome.
Anchoring bias is a crucial psychological factor that makes the negotiation more likely to be in favor of the person who makes the first offer. So, it’s recommended to be the first mover!
For even greater impact, you can open negotiations with a sales presentation, perfectly prepared for the occasion. Visme’s ready-to-use sales proposal interactive presentation template will help you pitch convincingly and effectively.
Along with your first offer, take full advantage of useful graphs, diagrams and figures available in Visme’s editor. There’s no doubt your sales pitch presentation will attract your client’s attention and help them make the best counter offers.
Watch the video below to learn more about creating winning presentations.
A key part of any negotiation is building rapport with the other party. Finding common ground and establishing trust can create a more positive atmosphere for the negotiation and increase the chances of a successful outcome.
Although engaging in small talk at the start of a negotiation is not always feasible, doing so can bring real benefits.
Even a brief introductory sales discovery call may make a difference if you're negotiating over email. Building rapport is not only a valuable negotiation skill to master but also allows you to build a sales process that closes more sales.
Asking open-ended questions is a powerful negotiation tactic that provides you access to more information. It helps you better understand the other party's perspective and identify areas where there may be room for compromise.
For a start, it is important to avoid posing questions that only elicit a "yes" or "no" response, or those that are leading in nature, such as "Isn't that a fantastic idea?"
Instead, formulate neutral questions that inspire in-depth answers, such as "Would you mind sharing the obstacles you are currently encountering this quarter?"
The whole point here is to identify areas of common ground that you can take advantage of. Questions are also a great way to build rapport. However, it's important to use questions strategically without overwhelming the other party.
Putting yourself in the other party's shoes is the best way to understand their perspective. It can help you craft a proposal that meets their needs and addresses their concerns. By showing empathy, you’re also building rapport and creating a more positive atmosphere for the negotiation.
One key way to empathize with your potential client is to showcase your company's case study and other success stories. Make them feel they are in the right place and their problems will be addressed.
Use Visme’s beautiful presentation template to showcase your case study or personal success story. The presentation template comes with designed slides and graphics, which you can customize as per your need. You can also add pictures, icons, charts and graphs for more emphasis.
The Door-in-the-Face Technique is a persuasion tactic that involves making an initial request that is likely to be rejected, followed by a more reasonable request. The idea is that the person being asked will feel guilty or obligated to comply with the second request after rejecting the first one.
For example, you might first ask a potential customer for a large purchase or commitment, such as signing a long-term contract. When this request is likely to be rejected, you follow up with a smaller, more reasonable request, such as a trial period or a smaller purchase.
It’s an effective negotiation tactic in business-to-business sales, where the decision-maker may feel that they cannot make a quick decision and may appreciate the opportunity to start small and build up gradually.
The lowball technique is a negotiating tactic in which you make an initial offer significantly lower than the desired outcome. The idea behind this tactic is that your potential client will be more likely to accept a compromise or counteroffer closer to the desired outcome.
This technique is often used in sales or other business negotiations but you can apply it to personal negotiations as well. However, it's important to note that lowballing is considered unethical in certain situations and can damage relationships.
Being flexible and open to compromise can help find a middle ground and reach a mutually beneficial agreement. Compromising and finding creative solutions can be key negotiation tactics, especially when the other party is also looking for a win-win outcome.
After the negotiation, it's important to follow up with the other party. This helps solidify the agreement and ensure that both parties are on the same page. It also provides an opportunity to address any lingering questions or concerns.
With these negotiation tactics under your belt, you'll be well-equipped to handle any negotiation situation that comes your way. However, they aren't mutually exclusive and the best negotiators often combine them to achieve their goals.
Visme graphics in your sales pitch can be a powerful tool to help you close more deals and make more sales. Visme's templates provide a wide range of design options that can help you showcase your negotiation tactics in a visually appealing manner.
For example, you can use customizable infographic templates from Visme's gallery to create infographics that break down complex data and statistics in a way that is easy for your clients to understand.
If you want to take your sales pitch and negotiation tactics to the next level, consider using Visme's templates to start creating more effective and engaging sales materials today. Try our templates now and see the difference they can make in your sales negotiations.
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