Negotiating in Life, Negotiating Tips, Business Negotiation December 20, 2010

Negotiations: Before you make a sale

Looking to make a sale before the end of the year? Time is running out! If you are a seller during this busy time (or any time of the year) you must strategize and plan for negotiations. First, you want to have some bargaining leverage. To obtain the leverage you need, you need to learn how the buyer feels about the product or service you are selling. The more insight and knowledge you have about the buyer, the better position you will be in. Prior to entering the negotiation, Dr. Chester L. Karrassrecommends that sellers probe for the answers to six essential questions. These are:

1. What are the buyer’s specific objections to the product or service?
2. What does or doesn’t the buyer like about the seller’s competition?
3. Which benefits of the seller’s product/service are the most important to the buyer?
4. Does the buyer believe the seller’s product statements?
5. What is the buyer’s attitude or feeling about the seller and his product or service?
6. Are there indications that buyer wants to close?

Second, as a seller you must understand that you have an important source of power in the negotiation: your extensive power of knowledge about your product/service. The buyer will likely never have the inside information that you have. Third, sellers should know their competition. A thorough knowledge of the market and its key players is important to remain competitive. If someone is offering the same product for less, you need to know why and you should have a reason to offer the buyer for why your price is different. What do you do to prepare for a sale?