Winning Clients - Opportunity Management
The Sales Cycle
Negotiate
There are hundreds of books on negotiation strategies and just as many strategies. We believe there are really only three simple strategies; stength, weakness and other.
We negotiate with a strategy of strength when the deal is a win-win. It means that we have clearly established a quantified, verified value proposition based on the prospects own metrics. Additionally, we are in a position to achieve our objectives in the deal as well. When we are in a position of strength we should never have to resort to price discounts because the value proposition has demonstrated the right value for the price.
We are forced into a strategy of weakness when we have not been able to establish clear value. If the deal is still desirable, we will have to resort to discounts or other concessions to close the deal. Too many sales professionals believe that discounting is one of their primary tools and they will jump to it before doing the work required to establish a true value proposition. Not only does it result in fewer sales, but the ones we get are lower margin. Establishing a good value proposition doesn't just secure a good price but more often than not it leads to more sales.
The third strategy we call 'Other' is really only employed when there is a strategic reason to get the deal. It could be a marquee account or it might be a way to break into a new market. This is typically a decision made by a sales manager or sales executive. The normal rules do not apply in this instance.
If we are able to agree on a mutually satisfactory deal, then we have a go. At this point we issue a formal proposal and ask for referrals. If we get to a no-go then the deal is either a loss or a no decision. When we were in the Assess phase we could withdraw the deal but if we make it this far and don't go ahead, it is a loss. The only other viable option is a No Decision.
As always, don't neglect to seek referrals at this point.
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