Gaining the Upper Hand

GAINING THE 1. Failure to close It applies to the salesperson who assumes the other party has understood their request without being explicit about it. Unfortunately, their UPPER HAND assumption is flawed and the opportunity falls by the wayside. Having failed to ask for closure, they are then surprised and disappointed when the deal is not done. Typically, the seller fails to SIMON BUZZA offers the first two rules in his new ask for the order after making a perfectly good pitch – they have all but completed the sale, but series explaining the 12 key rules of negotiating because they did not take the final all-important step, the moment and the sale are lost. Recommendations RULE NUMBER 1: l Make your request explicitly. Never assume IF YOU DON’T ASK, YOU WON’T GET... that the other party has understood your request This statement may sound blindingly obvious, if you have not made it clear. Any assumptions but it is striking how many salespeople fail to ask you hold may be well wide of the mark. for what they want in a negotiation. l Be brave – success belongs to those who are

Over the next six editions of Winning Edge, I prepared to be bold and ask for the business. shall present my 12 key rules for success in the The customer or prospect will not be key sales art of negotiating – and this is the first. Have you ever wondered just how much money you may have left on the negotiating table because you did not ask for more? Perhaps you do not want to know, but importantly you should not want to leave any more... If so, read on. This rule essentially relates to two areas: offended. The worst they can do is refuse, which will enable you to identify their objections and, hopefully, overcome them. l Were you clear on the purpose of the meeting and negotiation at the outset? If so, you should have 66% OF SALESPEOPLE SPEND LESS THAN ONE HOUR ON PREP, PLANNING AND REHEARSAL SOURCE: NEWDAWN PARTNERSHIP

prepared for the critical moment when you make your request. If not, follow Rule 2 below. l Prepare the ground for closure by asking closed questions such as, “Do you have any concerns about what I have said?” and “Does this makes sense so far?” Then close by stating, “Good, in that case the next step is…”

2. Lack of conviction This often affects unassertive salespeople who lack the confidence to ask for one or more of their deal requirements. They simply don’t have the courage, because they don’t believe the other party will agree. Typically, this could be a seller who does not state the full price, but instead offers a discounted price because the buyer has successfully conditioned them to accept they won’t be able to afford the full price. Recommendations l Do your homework (preparation, planning and rehearsal – see Rule 2). It helps enormously with self-belief in difficult situations. l Always ask for the maximum that is plausible. It often pays and you might just get what you would ideally want. It also raises the perceived value of your offering, so if you need to

“Be brave – success belongs to those who are prepared to be bold and ask for the business”

negotiate further it gives you some room for manoeuvre. You can always come down on price, for example, or add further value to the deal, but you can never go up in price or take features you’ve offered away. The less you know about the other party, the higher your initial request should be. If you ask for more than your maximum plausible position, always imply some flexibility to move. When you do eventually move, the other party feels that they have a win.

RULE NUMBER 2: NEGOTIATIONS ARE WON OUTSIDE THE MEETING Negotiations are won in the preparation, planning and rehearsal (PPR) for meetings, not at the table. Based on information provided by 973 delegates from 19 different companies who have attended our programmes, only one third of them spend more than one hour on PPR for a negotiation. Often this work is carried out on the hoof, in a café, taxi or train en-route to a customer, or in a rushed pre-meeting that is prone to regular interruptions, just prior to a key meeting with a customer.

The old adage applies: “If you fail to plan – you plan to fail”, and this approach is clearly

SIMON BUZZA is a Fellow of the ISMM and founding partner of the NewDawn Partnership, an advisory service that focuses on delivering operational improvements to the buyer and seller interfaces of a business. Visit: www.newdawnpartners.com inadequate. The outcome of any negotiation is directly related to the amount of PPR conducted by the involved parties. The party that has allocated adequate time to do the PPR will invariably outperform the party that has not.

So, do you spend enough time on PPR? Just as importantly, do you use this time effectively? Recommendations l PREPARE: This is the “What?” of the negotiation. It is about analysis and research into your position, the other party’s position and the market conditions. l PLAN: This is the “How?” of the negotiation. This is where you devise your strategy, plans and tactics. It is also where contingency planning is done so that all eventualities are explored and considered in advance. l REHEARSE: It is vital for salespeople to rehearse negotiations, to ensure that words, tone and body language are in sync, and to build confidence and spirit. These are essential ingredients of a successful negotiation, but they are often the pieces where it breaks down. We have found that the right attitude towards negotiations is the main difference between successful and unsuccessful negotiators. Getting into the right frame of mind before you begin should also be part of your preparation plan. For example, a great deal of time can be spent in developing the right words for an opening statement, but if it’s not delivered authentically and effectively, that time has been wasted.

Our blueprint for success shows that, in total, at least three to four times the duration of the negotiation meeting should be allocated to PPR. This is then broken down into the three areas: preparation (our own situation as well as the other party’s), planning, and rehearsal. The diagram below shows the approximate time breakdown you should be looking to achieve.

Seven out of ten delegates to our programmes say they underprepared for their last negotiation and would have had a better outcome if they had spent more time on PPR. That says it all.

NEGOTIATIONS ARE WON BY PREPARATION, PLANNING AND REHEARSAL (PPR)