Many negotiations involve buying and selling. Each side has different goals, and thus different strategies. Following are the top five strategies for sellers and buyers when entering a sales negotiation.
5 Strategies for Sellers
- Proposals are not static—always read the proposal after submitting and make any changes that are warranted.
- Monitor your proposal and get all the information you can from the buyer.
- Note all signs from the buyer, including unspoken signs like attitudes, glances and gestures.
- Invest time, money and effort in: estimating systems, cost-accounting systems and pricing analysis.
- Your source of power is the amount of knowledge you have about your product/service and its cost structure. You should always know more about this than the buyer. Taking a specialized sales negotiation course can further equip you with insights on leveraging product knowledge effectively.
5 Strategies for Buyers
- Remember you are in a powerful position and you should preserve and enhance it throughout the buying process.
- Whether or not you are looking at competitive bids, the seller should think you are.
- Know as much as you can about what you are buying.
- Learn all you can about the seller—his/her goals, values, organization, etc.
- Identify and assess any risks involved with the product or service.
In the end, both buyers and sellers should aim to get the best possible agreement for both but each party has different goals and roles in the negotiation process.
Are there any strategies that you think are crucial for either side? Please share in the comments.
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