The WOW Approach to Price Negotiations

Since we're all looking to make more money this year than ever before, I felt it was essential to get a new perspective on negotiating - a time in the sales process where you decide if you'll be making a little money or a lot of money. Read on for tips from sales trainer Tibor Shanto.

Negotiating is not a favorite of many salespeople, but when it comes to negotiating price it seems to be even more stressful. Even more so when the person doing the "negotiating" for the buyer is really haggling. We all understand that budgets are tight, but beating the seller into submission rarely accomplishes long-term good. This is why as a seller you need to have a plan so you can remain objective, unemotional and clear headed when you face this type of situation.

The WOW approach allows you to make decisions based on what is best for the deal, your company and the buyer; allow you to look past the heat of the moment and make more solid deals you don't regret in the morning.

WOW stands for:

WISH - OPTIMAL - WALK AWAY

WISH – Is simple to understand, but not always to get. Regardless of what you sell, this could be your list price, 'rate card', what have you. If you are in transportation, it may be the ideal price for a particular lane, the odd time you may get it, and that's great, but usually you find you have to make some concessions. At times it is not a bad thing, you may do the load for a slightly reduced rate because the client is high volume, gives you multiple lanes, and you can make up for the concession on another lane, and in the end you are whole; other times you may have some inbound freight that will balance things, etc. Other times the client just wants a lower price because they know the market is soft and wants to take advantage of you, first time you give in you are on a downward spiral that neither you or your company will ever recover from, no matter what (promises or prayers). If you can regularly get your WISH price you are doing good, and likely not in an industry with heavy competition.

OPTIMAL – Is the price where things are at a balance where everyone can feel they are getting the best possible value. The true win-win where your company is able to derive margins that allow it to grow and continue to innovate and develop products and services to meet client demands. The point where the client is getting full value, maximum ROI and a provider who is pleased to service and support the clients' objectives. If you are doing most of your deals in this range, you are still likely facing negotiations, but they are of the sort that makes for good business.

WALK AWAY – Can't make it any clearer than that. If the negotiations deteriorate to where the buyer will only buy if the price is at or below this number you have to WALK AWAY, no ifs, ands, or buts. You need to know this price before you leave your house in the morning, if you don't, you're beat before you even show up. You need to be able to take the emotion right out of the process, negotiate in good faith, but if it hits and crosses this line, politely WALK AWAY. If you don't you are doing everyone involved, and most of all you, a disservice. This should be a conditioned response, once it goes below the predetermined level, WALK. It may seem hard at first, but you will never recover and you will be stuck with a non-productive account that you will hate and that will always remind you of a weak moment.

Keep in mind that the goal is to work together with the buyer to achieve a mutually valuable deal. There are many ways to achieve that in a way that allows you to maintain price integrity and the respect of the client. But if the client does not respect you enough to find that mutual point, you should not think twice - WALK.

Tibor Shanto brings over 20 years of sales experience to Renbor Sales Solutions Inc., from telemarketing to leading a global sales team focused on providing top end solutions. Tibor has helped to improve performance for sales professionals in a wide variety of fields, from financial services to on-line B2B specialists.

Language Can Shape the Outcome of a Negotiation

When people hear the word "negotiate" they often think of haggling or arguing over price - they don't necessarily think "win-win situation." Yet, according to communication expert Dianna Booher, that's exactly what negotiation can be.

"Only recently have negotiators embraced the idea that all parties can walk away winners," says Booher. "And language plays a big part in setting the tone, shaping how people think and feel about working together, and dictating the final outcome."

Consider these tips from Booher for a "win-win negotiation":

Substitute "we" for "you and me"
Let language imply your intention to work out an agreement to everyone's advantage. Examples: "What would we have to do to get X to happen?" "How can we design this schedule so you don't have to work overtime and so we can meet the customer's deadline?" "What can we work out so that I don't have a large cash outlay upfront, and you still feel that you're not walking into a high-risk situation?"

Start with goals, then move to solutions
If you start with solutions to a problem and one or both of you can't accept the stated solutions, you may remain at odds forever. If, on the other hand, you state only your goals or motivations, then you can either accept or reject solutions as necessary and still come to an agreement that allows both of you to meet your goals.

Dianna Booher is the founder of Booher Consultants, a global performance improvement firm that works with organizations to increase profitability and market share through more effective communication - oral, written, and interpersonal. Learn more at http://www.booherconsultants.com