Starting the Negotiation

Once the client has selected you, contract negotiations can get really competitive really fast. They start firing demands at you. Or balk at the contractual language. It’s easy to become defensive and give in. After all, your job is to get the deal done.

But your job is also to protect margins while simultaneously not souring relationships. How do you do that? How do you turn what could become a competitive process into a collaborative one?

You do that by properly framing the negotiation process right at the beginning. I’m going to walk you through this process and include some scripts you can use verbatim or modify to language you prefer.

Whatever words you decide to use, the key messages you want to send are that both sides need to win for the deal to work and the best way to do that is by collaborating.

For that to happen, you have to be the one to lead that effort. You have to be the one to get the ball rolling in a positive, collaborative way.

Here’s how:

Step 1 – Frame the overall process

You start by framing the negotiation process overall. Here are a couple of options, one longer and one shorter.

Option #1

“Our goal is to come up with an agreement we both feel good about. I recommend we use a process to ensure I fully understand your needs & wants & that you understand mine so that we can come up with the best way to achieve those objectives. It has to be fair & looked upon as a win for both sides. How does that sound to you? Should we give it a try?”

Option #2

“Let’s you and I attack the issues together to come up with an optimum solution that we both feel good about and can support. You tell me what you need & I’ll tell you what I need. Make sense?”

Step 2 – Deeper dive into how

Next, you dive deeper into how best to do that.

“First, we share what we’re both looking for. I’m sure there will be things where we agree and things where we disagree. Where we disagree or where our needs conflict, we can brainstorm potential solutions that let us both win. We can rank them and select the best solution that allows us both to win. Does that sound okay to you? (Wait for acknowledgement.) Let’s begin.”

Step 3 – Establish common goals

Next comes the establishment of common goals. This is rarely done in a negotiation, but should be. Focus on what you both This is where you demonstrate that collaboration is not only possible but is desirable, and that both sides can win without one side losing. Spend some time on this one.

“Let’s start with goals I think we share in common. I think we both want a deal that’s fair to everyone. That’s the only way business relationships work, right? Second, I think we both would like a long-term relationship if possible, one where value increases over time. That’s usually a lot better than going thru an extensive search every couple of years. Third, I think we want an agreement where we’re both legally protected. Again, these are things we want and I assume you want too. Am I right? Anything other goals you think we share? OK. Let’s keep going.”

Step 4 – Share individual goals

From there you can draw out other goals they may have. Some clients will immediately go to issues and demands. If they do, gently challenge them by asking them why it’s important to them.

“What are some of the things you want to get out of this negotiation?” “Tell me more about that.” “Why is that important to you?”

And, you move on to the next steps in the negotiation.

Many prospects and clients won’t be used to this, so expect some resistance. Stay focused on collaboration. Keep circling back to fairness for both sides.

But also don’t be surprised when clients come to enjoy this method of negotiating with you. It’s hard to argue with fairness. And, many wish their salespeople would learn to negotiate with their clients this way.

Recommendations: Like any new sales skill, script out and practice doing this several times with colleagues before using it with clients and prospects. And if you’d like to go deeper on this process, enroll in my “All-Win Negotiating System” program. Becoming a master negotiator is the kind of differentiating skill you want in today’s environment.

Have a great week and a very Merry Christmas!

Bob

P.S. You can master negotiating in one of two ways: individually or as part of a team. I offer a self-paced course that includes personal coaching. And, I offer a company-based course that includes group coaching. Contact me if you’re interested in either. [email protected].