"Fair is when one side gets exactly what they want and the other side gets just enough to stop complaining." - John Dutton, Yellowstone
Although this is a great life lesson, it should never be your intent when you are negotiating.
Today we see this quote play out in our nation's capital and daily in the headlines about one group pitted against the other. People can agree with someone on 97% of the issues, but Heaven forbid that person steps out of line once. It is over in an instant. When did the world lose tolerance for differing opinions or goals? When did it not become okay?
Our business relationships are just as fragile. There is almost always another option for your customers. If they don’t like the way they are treated, they will start looking to replace you.
What does this have to do with business?
You will never agree 100% with the person you are negotiating with. Ever. So how do you proceed if you can't get everything you want? What's as important, if you are already in business with this company, how do you service them tomorrow if the you are the sole winner in these negotiations? Don’t you think there will be some resentment?
Today we have serious supply chain issues around the world. Commodities that have been readily available are no longer plentiful. Lead times are stretched due to logistics issues and manpower reductions. Suppliers have a serious amount of leverage for the first time in a long-time. If you are a supplier, what will you do with this leverage?
The first inclination from COO's and CEO's is to raise prices to the fullest extent. Take back some of the profits that have been ceded to the OEM's for quite some time now. Correct the previously uncorrectable, eliminate parts that no longer make money, fatten up the bottom line - you get the picture. That is the message being pushed out to the sales teams around the world. This is the same sales team management expects to be building long-term mutually beneficial relationships for the future.
Be careful in what you ask of the sales teams. You must have a plan, and clearly define what the priorities are. For some businesses it becomes a question of survival. If this is the case, are you clearly explaining that to your customers? Being transparent has major advantages in negotiations. I'm not an advocate of detailing 100% of everything, but being honest and open about where you stand is important.
For other businesses that may be looking to improve their situation, or as Winston Churchill is quoted "never let a crisis go to waste". You can still take advantage of the situation, but do you want to use John Dutton or Stephen Covey's way of working.
I've kept the pocket 7 Habits in my wallet for decades now. It is my simple reminder that you can still get what you want, if you help the other side get what they want.
First; prioritize your asks. What are your walk-aways? What things are so important that if you don’t get them, you walk away?
What are your throw-aways? What are those things that you are asking for which are icing on the cake, that you can live without? Not only do you the sales leader needs to know that, but so does your sales team. They can't be expected to get 100% of everything you want, and they need to know exactly where your line in the sand is drawn.
As you can see by the Copywrite, I have had this in my wallet for over 20 years. Even though it's memorized, it is reviewed each and every time I know I am walking into a tough negotiation or discussion. Why do I look at it? Its #1 on the list, isn't it? Be Proactive. Start your research early, so you can answer objections or help define the parameters of the discussion.
When I think of sales, I also think of leadership. As John Maxwell says, "Leadership is influence, nothing more, nothing less". Sales is the same. In sales, you are attempting to influence buyers into making a decision that benefits you and your organization. There are many ways you can influence people, which will you choose? Maxwell has identified seven ways you can influence, in which way do you tend to lead?
Force
Intimidation
Manipulation
Position
Exchange
Persuasion
Respect
If you are looking at the top part of this list as your favorite methods, maybe you should rethink your methods.
Looking for ways to better influence your team? Kole Performance Group is here to help; train, mentor, advise, or develop you and your team. Contact us to see how you can best use the leverage you have.