Negotiation – A-Head for Success

A-Z of Business: S – Selling: Your 6 Steps to Success

June 24, 2013

Sales Sales are the lifeblood of any business and the ability to sell is an art-form. That’s why sales people get paid so well.

It’s also inextricably linked to reputation. So, whatever commitments you make in the sales process, it’s important to be sure that you can meet them. It can be tempting, especially if you are chasing targets, to make a sale at any cost. Promising impossible delivery terms, or unworkable modifications, just to get them to sign the order, can be an expensive mistake.

Conversely, being honest with a prospect if you feel your product isn’t right for them, increases your credibility, your reputation and the potential for future sales and ongoing referrals. Your prospect understands that you have their best interests at heart so they will trust you should their needs change in the future.

Selling requires a variety of skills, from the ability to build rapport, to excellent listening and communication skills. The ability to handle objections is possibly the most difficult component and was the subject of a previous article (view). It requires the ability to influence effectively (view) and to negotiate well (view).

Following is a simple sales process. To illustrate it in action, let’s suppose you are selling a printer:

Build rapport
Background information
- How long have you had your existing printer? What features are you looking for? What kind of volume do you need it to produce?
What problem are you trying to solve?
- “We’d like to save money on ink; We’d like to improve reliability and print quality and we’d like to increase the number of functions – ie print on A3, collate reports and staple”
What effect is the problem having on you? This helps the prospect to identify with the pain of the problem.
- “The current printer is slow, unreliable and often breaks down – last time it meant that the reports weren’t ready for the board meeting.”
Suggest a positive outcome to their problem. This will move them from the pain of the problem to the pleasure of the solution, making them more open to saying “yes”.
- “Our model XYZ123 will produce high quality print, 50% faster than your current printer at a 20% saving on your current cartridges. Not only that, it will collate and staple your reports for you.”
Ask for the sale – the most important part!
- There are various closing techniques, the simplest of which are:
  - Direct – “This seems to address all your needs whilst making savings for you. Would you like to buy this model?”
  - Assumptive – “When would you like it delivered?”

It is easy to blame the product or the price for lack of sales, but often the issue is more about not having aligned your solution to the client’s needs. Remember that selling is an art-form. Do read the objection-handling and negotiating articles mentioned above for more information. Also, why not call for some 1:1 coaching so that you can have a personalised input on how to improve your sales success? Call me on 0845 130 0854.

About Tricia Woolfrey – click HERE to find out about the author.

Customer, Influencing, Negotiation, Objection handling, Products, Sales, Success, Trading

Influencing skills, Negotiation, Objection handling, Product, Sales, Strengths, Success, Tricia Woolfrey

A-Z of Business: O – Objection Handling – The Ten Essentials

April 2, 2013

Objections are an inevitable part of any selling process – whether you are selling products, services or an idea. It is the part of the sale which leaves all but the very best sales people, influencers and negotiators trembling behind a façade of the “this-doesn’t-bother-me-at-all” faux-smile. It’s what keeps most would-be sales people hiding under a duvet of busy-ness so they never get to make the call which could result in the rejection they fear so much. And this is because they personalise the “rejection”. They make it about themselves rather than a legitimate (or smoke-screen) concern.

Sales is really a numbers game and you need to get through so many rejections before you can make one sale. Objections are often a signal for more information and here are a few ideas to help you through with greater ease:

First and foremost, don’t take it personally. You can no more be an effective salesperson without objections as you could be an effective car without wheels. Think of objections, instead, as “feedback”.
The second “secret” is to build emotional resilience. That’s a big subject to which I devote a whole chapter in my book “21 Ways and 21 Days to the Life You Want”. However, one quick way of building resilience is to view every experience as a learning opportunity.
Prepare by listing all the objections you think you may receive – here are some common ones:
- Price
- Delivery terms
- They already have a current supplier
Practice active listening so that you really understand what they are saying, not what you want to hear or what fits into your well-prepared script.
The easiest objection handling technique (and there are many) is the shopping list technique. It flushes out any possible objections up front. To do this, you need to elicit all their wants in advance and write them down. When they have finished, ask “Anything else?” until you are sure you have everything. Then say “So, if we meet all these needs, you will want to go ahead?” This, of course, is assuming that you’re actually speaking to the decision maker.
Think of your offering in terms of features and benefits. Let’s say that you are selling a gardening magazine. The feature may be that it is full of interesting articles by some of the country’s top experts. The benefit might include some of the following: that it will provide easy-to-follow answers to all their gardening problems right when they need it so that they can enjoy a beautiful garden all-year round; they will spend less money on plants which were never suitable for their garden in the first place; they will be able to enjoy a hobby rather than be frustrated by the lack of progress; they will learn new skills, and create a space where they can relax/have fun with their kids/entertain friends/grow organic vegetables to make healthy meals for their families; they will have more time to enjoy being in their garden rather than working on their garden, etc. The idea is to find out what they want and sell to those rather than have a blanket list.
Avoid giving too many benefits because you dilute the message – just focus on their specific wants and needs.
Move them through negative states into the positive state you want them to experience, ie. from cynicism to curiosity to openness and finally to enthusiasm. I cover this in my ‘Influencing for Better Business’ course.
Once you have taken them through each of their shopping list items, ask if there is anything else they need. Then, for any ongoing objections ask “If I could deal with this, would you be ready to go ahead?”. Then come up with a solution to the problem that they are happy with.
When all objections are handled, ask for the sale. You will be surprised how many people miss off this important element.

I couldn’t finish this article without my bonus tip – limit your sales calls and sandwich them in between enjoyable activities that give you a sense of achievement. This helps you to stay resourceful and to maintain your energy levels and resilience.

If you would like to learn more about how you can handle objections, why not book for a coaching session, or onto my next ‘Influencing for Better Business’ course? Investing in yourself in this way can really yield exceptional results. Call 0845 130 0854 for more information on how to accelerate your success.

About Tricia Woolfrey – click HERE to find out about the author.

Business, Customer, Influencing, Negotiation, Objection handling, Problem Solving, Sales

Achievement, Customer, Customer satisfaction, Influencing, Negotiation, Objection handling, Problem solving, Sales, Success

A-Z of Business: N – Negotiating With Integrity

March 12, 2013

Being able to negotiate with integrity is vital to profitability and also for relationships. Effective negotiation is less about winning as it is about creatively finding a way in which both parties get what they need. Sometimes this will involve compromise, where each party makes concessions to the other. Sometimes it will involve backing down in the interest of maintaining a positive ongoing relationship – short-term pain for long-term gain.

There is an art to knowing when to concede, when to power- through at all costs, when to collaborate and when to compromise, or even withdraw altogether. Here are my top tips for negotiating with integrity:

Be clear about what you want and the minimum you will accept but don’t talk about your minimum too early as it will weaken your position.
Create a resourceful state prior to the negotiation. Useful states are powerful, calm, creative, respectful and influential.
Listen more than you talk so that you can ascertain what’s important to them and where you might be able to seek leverage.
Always find points of agreement first. This creates a “yes-set” which makes it easier for the other person to continue agreeing with you.
Show the value in what you are offering so that the negotiation is not just about price.
Use positive language such as “My price is…”. Too many people use softer language such as “I’m looking for…” which is subtext for “I am expecting less so push me as much as you want – I will give in really quickly”.
Use silence positively. Once you have stated your price (or your condition, wants, needs), be silent. Over-explaining weakens your position.
Be clear about the specific need of the other party, sometimes we negotiate on the wrong thing. They might be concerned about cash flow or speedy delivery over price for example.
Price is just one area for negotiation but also consider discounts for volume, including training in the price, payment terms, contract periods, etc. This adds value to the negotiation so that price becomes less of a block.
Use “If you …I will” when talking about concessions. Much stronger than “If I … will you” which tells them that you are ready to concede first, thereby reducing your negotiating power.

Negotiating is a powerful tool which can be very effective when used correctly. However, applied clumsily, it can damage relationships and profits. If you would like help, why not book some coaching by calling 0845 130 0854.

In the meantime, you might want to check out our Influencing Skills Course on 19th September, which also has some powerful techniques to help you.

About Tricia Woolfrey – click HERE to find out about the author.

Decision Making, Influencing, Negotiation, Sales, Suppliers

Influencing, Negotiation, Pricing, Profit, Relationships, Sales, Suppliers

A-Z of Business: K – Knowledge – Your Competitive Edge?

January 17, 2013

It is estimated that 15% of success is from your technical skills whereas 85% is through gaining trust and respect. So, what has knowledge to do with this? Plenty, as it happens. Knowledge covers the whole spectrum. Good technical skills are, of course, important. But not if the knowledge is out of date. Technology is changing all the time – as are trends – and it is essential to keep abreast of what’s going on in your market place and in your profession.

Solicitors and doctors go through years of training in their profession before they are able to practice. Yet, how much training have you had to run your own department, or your own business? How much knowledge have you acquired to help you be successful? Whether you are running a department or a business of your own, the knowledge you need to be effective is extremely broad and most people simply muddle through. In the meantime, what happens to the trust and respect essential to 85% of your success?

The following table helps you to understand some of the fundamentals for trust and respect and the kind of knowledge you need for them:

TRUST AND RESPECT	KNOW-HOW
Good people and rapport skills	Influencing and leadership
Doing what you say you will do	Planning and organising
Doing an excellent job	Technical and delegation
Managing complaints effectively	Problem solving and conflict management
Meeting your obligations	Business acumen and resource management
Emotional intelligence	Understanding of people and yourself and how to manage yourself and your relationships in times of stress

Business knowledge – such as sales, marketing, finance, operations – is important whether you run your own business or manage a department as you need to see how everything fits together. These will help you to exploit strengths, minimise weaknesses, seize opportunities and handle threats from a point of strength.

So, how can you increase your knowledge? Through coaching, training, reflective learning and study. Often, you don’t know what you don’t know (in the case of business, ignorance is not bliss) and it is helpful to have someone there who can help you see your blind-spot. Having your own coach and mentor is an excellent step to take to help you stay on top of your game. For more information call 0845 130 0854 for a no obligation chat.

About Tricia Woolfrey – click HERE to find out about the author.

A-Z of Business: I – Influencing Skills

November 28, 2012

The ability to positively influence others with integrity is a key skill in business. It affects your ability to have people buy into you, your business, your product and your ideas. It impacts your leadership style and your ability to build constructive relationships. It can also be incredibly stressful if you are unable to influence people constructively, impacting your productivity, your sales and even your profitability.

Influence is about your ability to have a positive effect on someone. It differs from manipulation in that it is undertaken with integrity and regard to the interest of the other party. It’s about having people buy in to your ideas and perspectives, so that they say ‘yes’ to you more.

The talent for influence requires flexibility in style, clarity of outcome, the ability to understand a situation from several perspectives, and creating and maintaining a resourceful state, particularly during times of conflict, or when the stakes are high.

It is not about imposing but inspiring someone to take a particular action, while maintaining strong rapport and building positive relationships.

There are numerous language patterns which enhance your capacity to increase your powers of influence which are too numerous to go into in this short article but which I teach to many of my clients and which I include on my Influencing Skills training course. The issue, though, is not what the skills are, but the effect that they can have on your success. They can help you deal with objections and concerns so that you are able to transform potentially negative situations elegantly. It’s the YES factor!

Whether your intention is to create change, elicit support or diffuse potentially contentious situations, influencing skills can be a real boon to you in your business.

For further details, please contact Tricia Woolfrey on 0345 130 0854.

About Tricia Woolfrey – click HERE to find out about the author.

A-Z of Business: F – Finance – 5 Tips to Help Your Business Succeed

September 24, 2012

1. Cash is King

Cash flow is the main reason for business succeeding or failing. An apparently successful business may have a full order book, and even good levels of projected profit, but if funds cannot be collected from customers in a reasonable timescale the business will fail. You should ensure your customers are aware of your payment terms before carrying out tasks and where possible advanced payments, should be requested.

Tip – Get paid on time by ensuring you have regular communication with your customer and that you have an effective credit control procedure.

2. Overtrading

This is where a business has a full order book but struggles to convert turnover (sales) into profit. This situation usually develops when tasks are taken on at a cheaper rate when compared to competitors in order to secure orders. Subsequently, the business becomes very busy but the income generated is not sufficient in order make a profit, and so the business fails. This strategy can be used carefully in order to try and build a reputation but for small businesses it should not be used in the long-term. Remember “turnover is vanity, but profit is sanity”.

Tip – You are usually in business to make money so ensure you do not under-sell your products or services unless you have a clearly defined plan.

3. Control the Controllable

Fixed costs – these costs do not vary regardless of the business activity undertaken, i.e. rent and rates.

Variable costs – these are dependant on the level of activity, i.e. heat and light or staff overtime.

Tight control and effective monitoring of these costs is essential. Whilst fixed costs by their very nature are easier to control, effective negotiation with suppliers is an important step. Variable costs can often get out of control if not properly managed, i.e. buying stock recklessly can tie up cash and may lead to unforeseen losses.

Tip – Ensure there is an efficient method of recording and managing costs. Monitor them on a regular basis.

4. Supplier Relationships

Negotiating with your suppliers is important in order to gain value for money but when evaluating a potential supplier do not focus solely on the costs. You should try and build a close working relationship with your suppliers and also consider the following:

Product efficiency – do they have a good reputation for supplying reliable products?
Delivery – can delivery be made in a timely manner?
Payment Terms – extended terms can often ease your own cash flow concerns.

Tip – Ensure you question potential suppliers to ensure they meet your key criteria.

5. Initial Funding

Many small businesses often underestimate the amount of necessary funding needed to commence trading or start a new product line or service. This lack of funding will immediately restrict any business capacity and will greatly threaten the potential growth and stability of your business. Always identify and try to properly estimate the amount of money needed to launch your business and to cover the costs for at least the first year which should include both running expenses and capital investment.

Tip – Take time to plan the financial implications of your business plans.

With thanks to:

Colin Bentall FCCA
Ford Bentall LLP
www.fordbentall.co.uk