Source | LinkedIn : By Anurag Harsh
Sales negotiation has not decreased in importance although the glamor may have faded. Think of the term “salesperson”. It’s unequivocally pejorative. And yet, the practical knowledge of sales negotiation is more important than ever. The market is growing globally, and goods and services are cropping up everyday.
This has caused department heads to absorb traditionally sales specific tactics into their business models. In other words, no matter what sector you operate in, buying and selling will make up a natural part of its dynamics. That’s why stepping into a negotiation, whether big or small, armed with the skills that have kept sales departments at the front lines of business—in spite of social backlash—is indispensable.
The fundamental of sales negotiation have not changed much, despite cultural and social oscillation. People are people, and we’ve been dealing with money and goods for quite some time now. And so, to understand the art of sales negotiation is to grasp the interplay of psychology, economics, decision-making, and market trends.
Throughout my time as an executive and business-person I have learned invaluable lessons about sales negotiation. These lessons have helped me grow my businesses and other people’s businesses. Now, I will share some of them with you.
Step into the Buyer’s Mind
Buyers are always intent on improving their bottom lines. That won’t stop anytime in the foreseeable future. There are three primary ways that buyers go about doing this, and it’s often at your expense as a seller.
The first is to sell competitively. That usually results in price-point matching or beating a competitor’s price. This can happen in a number of ways, but more often than not it is through innovation. It’s risky and expensive, however.
The second is cutbacks. In a simple and unsympathetic sense that implies the reduction of operating expenses.
The third is better negotiation. This is by far the easiest path to improve profits. Buyers want to negotiate lower prices with their suppliers because it directly affects their bottom line. This is the alternative that directly applies to you, as a seller.