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Member You - Strategic Negotiations - Better Relationships - Better Deals
How to Measure the Benefit Your Product or Service Offers and communicate the value he brings and justify his price based on his impact on the business.Measuring the benefit of your product or service means putting a specific value on the advantage it offers. For example, it’s ineffective to say your light bulbs are brighter and last longer than the competition’s. You’ve got to let people know that they’re 50% brighter and last two times as long! Your dry cleaning methods aren’t just better, they’re three times more likely to remove stubborn stains than traditional methods. Your chiropractic techniques aren’t just effective, they’re clinically proven to reduce back pain for 95% of patients. And so on.The more specific you are about the superior performance, benefit, or advantage of your product or service, the more successful your marketing message will be, regardless of the medium you use. The reason is simple: Consumers hear claims of product superiority all SPJ: How does the salesperson protect against manipulation and control? DB: First of all, recognize it for what it is and then deal with it as the tactic, as opposed to reacting to it. If a buyer is sitting behind a nice desk and he seats you in a chair across from him that’s eight inches lower than his, just tell him you are not comfortable there and move to another location so you can be eye level with him. Then there’s the tactic where the buyer has a fading memory. They make an agreement and forget what they agreed to. You have to document everything and furnish these notes to all participants after every meeting. That way you have a written trail of what agreements were reached during every negotiation session. SPJ: What do you do when you reach a stalemate? How do you unlock the negotiations when there are no agreeable options? DB: That’s what you call your walk-away position. When you discover it is not going to be a good deal for you and the customer is not willing to consider alternatives, then just walk away from that bad business. True North: Does Your Marketing Compass Point Due Consumer? Are you getting the results you want from your sales organization? If not, it could be possible that your sales force’s negotiation skills need sharpening.How to recalibrate to higher salesAyn Rand wrote an insightful book called Objectivist Epistemology. To explain knowledge she uses the metaphor of chain links with the first link being an axiom truth. As you progress down the links, they interconnect with other links in a complex network. If you start with an axiom truth, the links hook easily and things make sense. If your thoughts don’t stem from axiom truths, connecting further links is difficult and thought becomes confusing.Take for example Senator Charlie Rangle’s bill to re-introduce the draft. He argued that if the draft were reinstated, powerful people’s children would be inducted into military service, so their parents would be more cautious about decisions leading to war. He makes a point but it’s no reason for a draft. Rath Negotiation is part of each step of the sales process, not a one-time event. It begins prior to the first sales call and ends with customer recognition of the value your product or service brought to his business. Successful negotiating, then, requires the right mindset, the right tactics and a keen understanding of the pitfalls along the road to closing the deal. Representing the Sales Performance Journal, business journalist Jennifer LeClaire talked with Dan Ball, a Miller Heiman Sales Consultant based in Atlanta, Ga., who works with several Fortune 500 clients in the region. Ball shed some light on his successful approach to negotiating by communicating value every step along the way. Sales Performance Journal: What is the proper mindset going into successful negotiations? Dan Ball: You need to go in with the mindset of trying to maximize not only the value that you get out of the relationship, but also what the customer gets. You also need to go in knowing what your desired outcome is. SPJ: How does the salesperson break the ice, so to speak? What is the best strategy for breaking down those walls of resistance or overcoming salesperson stereotypes at the onset? DB: Have the best interests of the customer in mind--as well as your best interests. Make sure your product or service is a good fit and meets each buyer’s interest. Be sincere and remember, people buy because they believe what you’ve told them. As soon as you ship the product or perform the service, they consciously or subconsciously check back to see if they got what they paid for. Make sure they see the value in what you’ve sold. One of the key things to remember is that negotiation is not an event in itself. It is a process made up of a series of meetings. Communicating the value of your products and services throughout the sales cycle can have a huge impact on negotiations. Negotiation actually begins prior to your first sales call, and doesn’t end until the customer has realized the value of the solution that he bought from you and its positive impact on his business. SPJ: How do you create the perception that you are working with the buyer as opposed to against the buyer? DB: Throughout the sales cycle you are trying to uncover the interests of the customers and what they are trying to fix or accomplish, or, in some cases, avoid. You are trying to understand the buyer’s personal and business drivers. The CEO is looking for something different than the production line manager. What are they tasked with? What are their goals? How are they measured? Cost will always be an issue but it certainly shouldn’t be the deciding factor. SPJ: What are a couple of common negotiation pitfalls and how do you avoid them? DB: Not understanding the business impact your products and services can make on the customer’s business. It’s a mistake to continue pushing product. You need to sell the business solution. Delta recently went through negotiations with its pilots. The airline was trying to reduce pilots’ salary because it needed to cut costs to stay in business. On the other side, the pilots were looking at how pay cuts would impact not only their salary, but also their retirement package and other benefits. Both Delta and the pilots gave a little and got a little to preserve the pilots’ benefits and the airline’s future. SPJ: When is positional bargaining, like haggling, appropriate and when is it a big mistake? DB: Bargaining and haggling are pitfalls. The other party may come into an interaction with a strong demand or position. You can’t negotiate a position, but if you understand the drivers behind the position you can develop solutions during the negotiation for the underlying problems that are causing people to take that position. Discovering interests behind their position leads to finding common ground on which to agree. SPJ: What types of issues cause people to take certain positions? DB: It comes down to what they think the solution should look like and not being willing to look at alternatives. When people are going to buy a car, for instance, they go on the Internet and do research. They find out what is the manufacturer’s cost and add a margin. That’s what they are willing to pay. They have made an assumption as to how much profit they will allow the dealer to make on that sale. They take a position. But if they only buy the car on price, they may be surprised when the service department is poor. So the salesperson needs to understand and communicate the value he brings and justify his price based on his impact on the business. SPJ: How does the salesperson protect against manipulation and control? DB: First of all, recognize it for what it is and then deal with it as the tactic, as opposed to reacting to it. If a buyer is sitting behind a nice desk and he seats you in a chair across from him that’s eight inches lower than his, just tell him you are not comfortable there and move to another location so you can be eye level with him. Then there’s the tactic where the buyer has a fading memory. They make an agreement and forget what they agreed to. You have to document everything and furnish these notes to all participants after every meeting. That way you have a written trail of what agreements were reached during every negotiation session. SPJ: What do you do when you reach a stalemate? How do you unlock the negotiations when there are no agreeable options? DB: That’s what you call your walk-away position. When you discover it is not going to be a good deal for you and the customer is not willing to consider alternatives, then just walk away from that bad business. Direct Mail Marketing: Message In A Bottle s.What is direct mail marketing – it is simply a means to reach your customer directly, generally through paper or electronic mail. Direct mail that comes through the post usually contains a letter, a brochure or flyer and perhaps a postage-paid reply envelop. The electronic version might take the form of a plain email, newsletter or even a fancy brochure with music and flash animation. Regardless of the format, the crux of direct mail marketing is that the sender selects who should receive the communication, based on a consideration of several factors which have helped him identify prospective customers. For example, a furniture store might choose to communicate with all those people who have purchased a house recently in the neighborhood.Why is it so popular – direct mail marketing has several advantages, the fi SPJ: How does the salesperson break the ice, so to speak? What is the best strategy for breaking down those walls of resistance or overcoming salesperson stereotypes at the onset? DB: Have the best interests of the customer in mind--as well as your best interests. Make sure your product or service is a good fit and meets each buyer’s interest. Be sincere and remember, people buy because they believe what you’ve told them. As soon as you ship the product or perform the service, they consciously or subconsciously check back to see if they got what they paid for. Make sure they see the value in what you’ve sold. One of the key things to remember is that negotiation is not an event in itself. It is a process made up of a series of meetings. Communicating the value of your products and services throughout the sales cycle can have a huge impact on negotiations. Negotiation actually begins prior to your first sales call, and doesn’t end until the customer has realized the value of the solution that he bought from you and its positive impact on his business. SPJ: How do you create the perception that you are working with the buyer as opposed to against the buyer? DB: Throughout the sales cycle you are trying to uncover the interests of the customers and what they are trying to fix or accomplish, or, in some cases, avoid. You are trying to understand the buyer’s personal and business drivers. The CEO is looking for something different than the production line manager. What are they tasked with? What are their goals? How are they measured? Cost will always be an issue but it certainly shouldn’t be the deciding factor. SPJ: What are a couple of common negotiation pitfalls and how do you avoid them? DB: Not understanding the business impact your products and services can make on the customer’s business. It’s a mistake to continue pushing product. You need to sell the business solution. Delta recently went through negotiations with its pilots. The airline was trying to reduce pilots’ salary because it needed to cut costs to stay in business. On the other side, the pilots were looking at how pay cuts would impact not only their salary, but also their retirement package and other benefits. Both Delta and the pilots gave a little and got a little to preserve the pilots’ benefits and the airline’s future. SPJ: When is positional bargaining, like haggling, appropriate and when is it a big mistake? DB: Bargaining and haggling are pitfalls. The other party may come into an interaction with a strong demand or position. You can’t negotiate a position, but if you understand the drivers behind the position you can develop solutions during the negotiation for the underlying problems that are causing people to take that position. Discovering interests behind their position leads to finding common ground on which to agree. SPJ: What types of issues cause people to take certain positions? DB: It comes down to what they think the solution should look like and not being willing to look at alternatives. When people are going to buy a car, for instance, they go on the Internet and do research. They find out what is the manufacturer’s cost and add a margin. That’s what they are willing to pay. They have made an assumption as to how much profit they will allow the dealer to make on that sale. They take a position. But if they only buy the car on price, they may be surprised when the service department is poor. So the salesperson needs to understand and communicate the value he brings and justify his price based on his impact on the business. SPJ: How does the salesperson protect against manipulation and control? DB: First of all, recognize it for what it is and then deal with it as the tactic, as opposed to reacting to it. If a buyer is sitting behind a nice desk and he seats you in a chair across from him that’s eight inches lower than his, just tell him you are not comfortable there and move to another location so you can be eye level with him. Then there’s the tactic where the buyer has a fading memory. They make an agreement and forget what they agreed to. You have to document everything and furnish these notes to all participants after every meeting. That way you have a written trail of what agreements were reached during every negotiation session. SPJ: What do you do when you reach a stalemate? How do you unlock the negotiations when there are no agreeable options? DB: That’s what you call your walk-away position. When you discover it is not going to be a good deal for you and the customer is not willing to consider alternatives, then just walk away from that bad business. How to Avoid Giving Away Free Consulting st the buyer? After spending 30 minutes in a coffee shop with a potential client, I realized that the sheet of paper they were writing on was almost full; full of ideas that I had just given away for free. If you consult, coach, or are in the advice-giving field, you may have had a similar experience. Here are some valuable techniques to practice that will prevent you from giving away free consulting.In most cases, arrange to meet with your potential clients for about 30 minutes, to see if you are a match; that is, can you offer a service to them and do they need it? Try to give something free to each potential client so they get a sample of your services. Giving one or two pieces of information away for free is okay, however, 30 minutes worth is not.Client Interviews (Get-To-Know Session)When meeting with a pot DB: Throughout the sales cycle you are trying to uncover the interests of the customers and what they are trying to fix or accomplish, or, in some cases, avoid. You are trying to understand the buyer’s personal and business drivers. The CEO is looking for something different than the production line manager. What are they tasked with? What are their goals? How are they measured? Cost will always be an issue but it certainly shouldn’t be the deciding factor. SPJ: What are a couple of common negotiation pitfalls and how do you avoid them? DB: Not understanding the business impact your products and services can make on the customer’s business. It’s a mistake to continue pushing product. You need to sell the business solution. Delta recently went through negotiations with its pilots. The airline was trying to reduce pilots’ salary because it needed to cut costs to stay in business. On the other side, the pilots were looking at how pay cuts would impact not only their salary, but also their retirement package and other benefits. Both Delta and the pilots gave a little and got a little to preserve the pilots’ benefits and the airline’s future. SPJ: When is positional bargaining, like haggling, appropriate and when is it a big mistake? DB: Bargaining and haggling are pitfalls. The other party may come into an interaction with a strong demand or position. You can’t negotiate a position, but if you understand the drivers behind the position you can develop solutions during the negotiation for the underlying problems that are causing people to take that position. Discovering interests behind their position leads to finding common ground on which to agree. SPJ: What types of issues cause people to take certain positions? DB: It comes down to what they think the solution should look like and not being willing to look at alternatives. When people are going to buy a car, for instance, they go on the Internet and do research. They find out what is the manufacturer’s cost and add a margin. That’s what they are willing to pay. They have made an assumption as to how much profit they will allow the dealer to make on that sale. They take a position. But if they only buy the car on price, they may be surprised when the service department is poor. So the salesperson needs to understand and communicate the value he brings and justify his price based on his impact on the business. SPJ: How does the salesperson protect against manipulation and control? DB: First of all, recognize it for what it is and then deal with it as the tactic, as opposed to reacting to it. If a buyer is sitting behind a nice desk and he seats you in a chair across from him that’s eight inches lower than his, just tell him you are not comfortable there and move to another location so you can be eye level with him. Then there’s the tactic where the buyer has a fading memory. They make an agreement and forget what they agreed to. You have to document everything and furnish these notes to all participants after every meeting. That way you have a written trail of what agreements were reached during every negotiation session. SPJ: What do you do when you reach a stalemate? How do you unlock the negotiations when there are no agreeable options? DB: That’s what you call your walk-away position. When you discover it is not going to be a good deal for you and the customer is not willing to consider alternatives, then just walk away from that bad business. 10 Secrets For Getting Into A Top B-School s future.1. Get a sky-high score on the Graduate Management Admissions Test. The average student at the top 10 schools on Fortune's list scored 700 or higher on their GMATs. (Overall, GMAT scores range from 200 to 800; the median is 500.)2. Be yourself. Don't try to match some imaginary ideal. "Often, people have an image in their minds of what kind of person a given school wants," says Blackman. "Usually it's because they know someone who went there, so they try to be like that person." What's wrong with that? "Business-school admissions committees aim to enroll a broad mix of different personalities and backgrounds, so they want to know who you really are - even going beyond your professional life to include any significant experiences you may have had, like a serious illness or an eye-opening trip abroad. Tell your re SPJ: When is positional bargaining, like haggling, appropriate and when is it a big mistake? DB: Bargaining and haggling are pitfalls. The other party may come into an interaction with a strong demand or position. You can’t negotiate a position, but if you understand the drivers behind the position you can develop solutions during the negotiation for the underlying problems that are causing people to take that position. Discovering interests behind their position leads to finding common ground on which to agree. SPJ: What types of issues cause people to take certain positions? DB: It comes down to what they think the solution should look like and not being willing to look at alternatives. When people are going to buy a car, for instance, they go on the Internet and do research. They find out what is the manufacturer’s cost and add a margin. That’s what they are willing to pay. They have made an assumption as to how much profit they will allow the dealer to make on that sale. They take a position. But if they only buy the car on price, they may be surprised when the service department is poor. So the salesperson needs to understand and communicate the value he brings and justify his price based on his impact on the business. SPJ: How does the salesperson protect against manipulation and control? DB: First of all, recognize it for what it is and then deal with it as the tactic, as opposed to reacting to it. If a buyer is sitting behind a nice desk and he seats you in a chair across from him that’s eight inches lower than his, just tell him you are not comfortable there and move to another location so you can be eye level with him. Then there’s the tactic where the buyer has a fading memory. They make an agreement and forget what they agreed to. You have to document everything and furnish these notes to all participants after every meeting. That way you have a written trail of what agreements were reached during every negotiation session. SPJ: What do you do when you reach a stalemate? How do you unlock the negotiations when there are no agreeable options? DB: That’s what you call your walk-away position. When you discover it is not going to be a good deal for you and the customer is not willing to consider alternatives, then just walk away from that bad business. Features are not Benefits and communicate the value he brings and justify his price based on his impact on the business.People don’t buy features; they buy the promise of what those features can do for them. Features are meaningless. Benefits are what sell your products or services.Perhaps you’re rolling your eyes as you read this because this is such an obvious point. You didn’t get to where you are today by not knowing the difference between your products’ features and benefits.Of course you didn’t, but a funny thing happens when a person is put in charge of their company’s advertising. They often tend to forget that features are not benefits. They forget that nobody cares about their product’s features except the product designers and some salespeople.Now maybe you’re different than most people. Maybe your company’s ads are all about the benefits of your products. Go ahead and give yourself a pat on the back. Y SPJ: How does the salesperson protect against manipulation and control? DB: First of all, recognize it for what it is and then deal with it as the tactic, as opposed to reacting to it. If a buyer is sitting behind a nice desk and he seats you in a chair across from him that’s eight inches lower than his, just tell him you are not comfortable there and move to another location so you can be eye level with him. Then there’s the tactic where the buyer has a fading memory. They make an agreement and forget what they agreed to. You have to document everything and furnish these notes to all participants after every meeting. That way you have a written trail of what agreements were reached during every negotiation session. SPJ: What do you do when you reach a stalemate? How do you unlock the negotiations when there are no agreeable options? DB: That’s what you call your walk-away position. When you discover it is not going to be a good deal for you and the customer is not willing to consider alternatives, then just walk away from that bad business. Salespeople have a tendency to not want to lose any deal, no matter what the cost. That can cause you to write unprofitable business. SPJ: How do you close the sale without coercion? DB: Get in agreement on all points and simply ask for the business. We try to put together a package of options that meet the needs of both parties and get agreement on each one of those options. Get agreement on the easy things first--but make sure each individual agreement is contingent on coming to a final agreement on all the issues. Start by developing solutions to mutual interests first, and then go to the harder points. Then you can bring it home.
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