Negotiation & Selling

Negotiation is a method by which people settle differences. It is a process by which compromise

or agreement is reached while avoiding argument and dispute.

In any disagreement, individuals understandably aim to achieve the best possible outcome for
their position (or perhaps an organization they represent). However, the principles of fairness,
seeking mutual benefit and maintaining a relationship are the keys to a successful outcome.

Many salespeople aren’t natural negotiators – that's not necessarily a bad thing or a lost cause
- it's just that the personality traits demonstrated by great B2B salespeople and commercial
account managers, usually have more to do with being helpful than being hard-nosed.

But that's why a lot of account managers stumble and struggle to differentiate between the
two - selling and negotiating.

You see, if you continue - or have to restart - selling during a negotiation, it may very well be
seen as a sign of weakness (or fear) – and it’s definitely a sign you didn’t use your precious
selling time well enough when you had the chance to.

On the other hand, if you dive in and start to negotiate before you’ve finished selling – then the
customer won't have any real chance to recognise the true value of what you have to offer.

There are a number of sales negotiation courses - which tend to have more in common with
Special Forces training camps than business development workshops - that rarely help those who
really need it.

Yes they're a great couple of days out for those thrusty, gung-ho, do or die members of the sales
team (everybody knows at least one) - but far less helpful for Bob who just wants to know how
to ensure he gets an aisle end display for Christmas or Susan who has got her third phase of price
increases to push through.

You see, there are a number of glaring differences between the skills required to be an
exceptional influencer, business partner and brand ambassador – and those required to become a
top notch negotiator.

For instance:
Selling is about matching a problem with a solution, helping someone to see how you can help.
That’s not negotiating.

Selling also involves explaining and presenting the total value of your product or service and the
benefit to the customer of moving forward with you, rather than going with someone else. And
that’s not negotiating.

At Varda Kreuz we talk about the Selling with EASE cycle;

Earn the Right – Ask the Appropriate Questions – Solve the Problem – Execute the Solution.
Any and all negotiation takes place in that final section – Execute the Solution.

You see negotiating can only happen after all the selling has been completed - when both sides
are ready to move forward and seek to reach an agreement upon which they can both live with.

Negotiation is all about two parties trying to get the best deal available for their own side of the
table – which is a discussion that definitely shouldn’t be mistaken for a price objection, if you've
started negotiating - objections should have already been overcome.

And negotiation definitely isn’t about winning – your customers aren’t the competition, that’s the
– erm – competition (you know, the other people who want the same business you're negotiating
for).

Negotiating may also involve an element of bartering, wrangling, haggling, hard bargaining,
dealing, concession trading and defending your position. And that is definitely not selling.

Negotiation and Bargaining

Negotiation and bargaining is a process in which two or more parties seek a mutual agreement through
an explicit or implicit exchange of views. The focus of this article is on international negotiation and
bargaining with a special emphasis on the role of international institutions in facilitating cooperative
bargains. In particular, the article discusses institutional design in connection with the nature of the
problem that parties face, viewed through the lens of the provision of different types of goods.

Bargaining is negotiation of price alone. But negotiation may apply to much more than price, and may
not include price at all. However, all negotiation involves an exchange of value, and agreements and
promises of performance. Bargaining is often done verbally. Negotiation often involves written records.

Example : Negotiation of a trip plan. A family of 4 agrees on what places to visit on a 2 week vacation to
Florida. They have a budget of $2,500.00. Looking at a set of maps and travel brochures, they choose the
destinations and time to spent at the various attractions. Will they stay at campgrounds, or a motel. Will
they make their own meals, or dine out? Some of each, perhaps. No matter what they choose, they
can't spend more than $2,500. The final plan involves compromises by everyone; no one gets everything
they want but everyone gets some of what they want. The family members don't exchange money
among themselves, but they do trade off one thing for another, based on what each person values most
highly. Thus the children might agree to only one day at Sea World, provided Father gives up a visit to
Daytona and goes to a tour of the Kennedy Space Center, instead. There is no contract, but there is a
hand written travel plan.

Bargaining is a simple form of distributive negotiation process which is both competitive and positional.
Bargaining doesn’t seek to create value, but instead focuses on negotiators claiming value.
Bargaining very often revolves around a single issue – usually price. Bargaining predominates in one-
time negotiations, e.g. buying or selling a car or house when you don’t intend on having an ongoing
relationship. One party usually attempts to gain advantage over another to obtain the best possible
agreement.

Thus, all bargaining is a form of negotiation, but not all negotiation is bargaining.