Topics Preparation is More Important Than Argument
When you’re negotiating with a customer, preparation is more important than argument. What do I mean by that?
We’ve talked in a previous video on it’s not about who can yell the loudest, or who’s strongest, or who seems confident. It’s not about that. It’s not about argument.
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Negotiating is not arguing. In fact, negotiating is simply trying to come up with a solution that’s going to work for everybody. That’s what negotiation is. It’s about disagreements or different point of view and now we have to come up with the solution that’s going to work for everybody. It’s trying to find the best alternative in the situation. What’s going to work? What’s the best outcome? That’s why preparation is key. That’s why planning is key.
So if you’ve got two people sitting across from each other at a negotiating table, one person comes completely unprepared but the other is ready. They’ve prepared their offer, they’ve done their research, they know the market conditions, they know what’s going on with competitors, they know similar pricing or they know comparable pricing among different vendors or different solutions. They come armed with information. That person will “win” in this negotiation. Preparation will beat screaming or argument any day. The facts will win. You need to be prepared.
Do your homework. Talk to people on your sales team. Have great conversations with prospects. Talk to the competition or at least do some research on the competition. Know what they’re offering and at what price. That way when you have a potential customer whom push back or challenge you on price and says “Whoa, that’s so expensive.” Rather than respond emotionally, you’ll be prepared and you can say “Really? Compared with what?”
You can cite examples of what’s going on in the market, what else is happening in the industry, and confidently defend your price based on evidence. Being prepared and planned will beat emotion and argument any day of the week.
So do your homework. Come prepared with what you are going to offer. What is the lowest amount you’ll settle for? What is the highest discount you’re willing to provide? Be prepared. Plan so that you simply follow that process because it’s about process not personality.