negotiating is bad Archives - SalesTactics.org

The most popular Apr posts here at SalesTactics.org begin with a bit of an anomaly. A post on the potential price of success that had been fairly popular since its publication in February was listed on Reddit. This lead to well over 600 views of the post alone. That's great, but most of the people who saw it were kids interested in Transformers; not adults with life experience. Nor were most of these viewers looking for success or sales advice. So they weren't interested in other articles. Still, a high number of people who otherwise would not have visited this site were attracted here, and I appreciate that.

I considered lopping this result off our list as an outlier. However, it legitimately did get many views and is worthy of the attention it received. Additionally, a comment by a Reddit viewer prompted me to add more detail to my analysis.

Most Popular Apr Posts at SalesTactics.org

#1 - How Badly Do You Want It

We look at an example not of success itself, but rather the price you might have to pay for your definition of success. Megatron is a cartoon and a "bad guy", so he never really wins. However, he is a clear symbol and leader of his movement. And he has a huge price to pay for being so: he can't take a day off just because he feels like it.

What Megatron is mirroring here, and what I'm talking about, is a real-world situation. The leader has worked their way into becoming a symbol, and their public behavior cannot vary from the mental picture their public has of them. If they do, they'll lose all their power.

My purpose in writing this article was to get you thinking about what success means to you. As I said in my follow-up piece below the original text, I've worked with many coaches. From that experience, I can tell you that when people find out what their life purpose is, often they do not like it. They have to do it, but pursuing that purpose is going to be an awful slog without much in the way of redeeming feedback. Is that what you want? On the other hand, can you stand turning your back on your purpose?

#2 - Negotiating Is Bad And Here's Why

If you find yourself in negotiation, you've made a mistake in your sales process. The prospect doesn't see you as unique, or different in any way. They've lined up you and your competitors in a spreadsheet to figure out how to get the most for the least. And they will be coming to use the quotations you and your competitors so cheerfully provided against you.

#3 - How To Sell More Girl Scout Cookies

In this article, we look at the relentless and well-composed marketing machine behind the sales of Girl Guide cookies. If your business had its sales & marketing system together as well as the Girl Scouts do, you'd be in a much better position--and you'd know what to do. Their site is a great example of how to provide organized marketing tools to front line sales staff.

My Take On the Most Popular Apr Posts

I believe we're continuing our search for the building blocks of selling. People want to see and know what works, and beginning with the questions of, "What am I aiming for?" and "How do I know when I get there?" is a useful beginning.

Recognizing the peril and error that has put you into negotiations is a powerful realization. If you don't know what's happening to you and why it happened, you are the victim. In selling we must be in the driver's seat; otherwise, the prospect is in control. Since it's our responsibility to communicate effectively, ceding that control to the prospect--accidentally or on purpose--is giving up your integrity as a salesperson.

Early in April we also looked at Qualifying. Spending energy on, giving price quotes to, and inviting into our business prospects who are not a good fit is a huge mistake. Allowing unqualified prospects to become clients will result in badly-behaved, financially unsound customers upsetting you emotionally and damaging your business. Don't let that happen: qualify effectively...and mercilessly.

Yes, that's a strong word. This is your business, your livelihood, we're talking about.

PS. Really LOOK at that Norman Rockwell painting above. Something's going on there; it's not just a bunch of heads. Once you've figured out what's happening, imagine how this same process occurs between you, your prospects and your competitors.

>> Jason Kanigan is a sales force developer. Was there a post you think should be on the list that I missed? Comment below to let us know! And if you're operating an established, profitable business earning over $250K in revenue but want to take it to the next level, come visit with me to figure out the whole detailed plan on how you're going to reach your next income goal over the next 12 months. <<

Like Trans Fats, Negotiating Is Bad for You

Trainer Terry Hockenhull has some good points to make about negotiation in a recent post.

First, he quickly points out that companies wanting negotiation training for their salespeople are only asking for trouble. When the negotiation skills are used, they will actually cost the company money and not provide expected benefits.

Having to provide the customer a discount to get the order is not win-win.

Competing on price is clearly not a good strategy.

Yet as Hockenhull says, many salespeople seem to think that negotiation and providing discounts are a viable ongoing method of winning orders.

If you are forced to use negotiation as a selling tool, you know your prospect has spoken with other service providers who do what you do. They have gotten detailed quotes from them. You likely provided your own. This was a mistake. Now the prospect has lined all those quotations up. They've created a table, with vendors across the top. Features down the side. Prices along the bottom. What do I get for what price? Because the vendors are all the same anyway.

And that's when the prospect comes back to you.

"Company J is giving us X, Y and Z," they announce. "What are you going to do to make up for it?"

Oh no! panic the salespeople. What will we do? We have to give them something!

Mistake #2.

Not only did the salesperson commoditize themselves, but now they are ready to start throwing discounts, mock-ups, free plans and who knows what else that costs the company real dollars at the prospect in the hopes of getting the order. This is why negotiating is bad.

Even Though You Know Negotiating Is Bad, Here's What To Do If You Have To

Hockenhull makes a great point in his article: never, ever get into negotiation with a prospect unless they have made "a clear statement...that they actually want to buy my product."

Do NOT negotiate simply to negotiate! Just because someone asks you to dance doesn't mean you have to. Otherwise, you may just find your negotiated concessions have been taken back over to your competitor, whereupon the prospect presents your Christmas gift list to them and says, "Here's what Company K is offering...what can you do?"

Follow Hockenhull's lead and train yourself and your sales staff not to give knee-jerk discounts.

Negotiating is bad. Win-Win is very unlikely in this event: maybe, if you can recover the situation by clamping down some serious Up Front Contract expectations like Terry suggests...higher volume or increased frequency of orders in return for your concessions, for instance.

If you find yourself negotiating, remember you have done something wrong. Debrief the sales conversation afterwards to find out where the error(s) were made.

>> Jason Kanigan is a sales force developer. Was this helpful to you? Please Like, Share or Comment to let others know. And join us in Sales Tactics University to make more sales and win valuable prizes! <<