Negotiation is something that we do every day. With clients, with the team, and even at home. Not everyone is on the same page always, hence negotiation is omnipresent.
Sadly, there is very little we read about how to do negotiations better. This 5 point blog is a must-read for it will increase your chances of converting your quotation to an invoice:
- Let the log roll – Know your essentials and giveaways
Expecting to get everything from a deal is a Wishlist you will never get. Always divide your expectation into Essentials (Things which you need in any case) and giveaways (Things which you can give away and do not cause you harm).
Start by discussing the giveaways, if you get them, it’s good. If you don’t, then also it’s ok. At-least the log rolled and the negotiation did not halt at the very beginning. Builds trust and the client feels more invested now.
- Sell a solution and not a product
The client has already researched your product, your competitor’s product, and everything on the internet. Selling that is just repeating a boring film. Instead, understand the pain point and sell a solution around it. Tell them how your product solves the problem and brings value (Reduced costs, better market reach etc.)
- Know your walk-away point
Knowing your bare minimum in terms of your objectives helps you walk off the table at the right time. Not knowing this and not walking off, will make you enter into a deal which is not a win for your business. And if it is not a win, the expected quality and experience might not be as good to you and the client which can be harmful in the long run.
- Take Ego off
Psychological barriers like Ego are key deterrents to landing a deal. You are on the negotiating table for business. That’s the key point. Your wealth, size of the business, personal qualifications, etc. does not matter a lot on the negotiating table. Both parties need each other, hence you are there.
- Don’t burn the bridges
Not all deals go through. Not all quotations can be converted to Invoices, even after you read this blog post. But that does not mean you leave the table with a bad heart. The world is small and both the parties will be in business for a long time. You never know you get on the same negotiating table again. Leave it for the end!
And you won’t want this to be your last quotation. Read our popular blog post here on how to generate more quality leads.