Hi everybody, it’s Julie here, the Sales Ace, bringing you part two of my sales tips around negotiation.
So last week, we looked at planning. I'm still going to talk about planning, and this week there are two more things to think about in the planning mode for negotiation.
The first one I want to talk about is your walk away. And that's having a really firm understanding - almost like “how low will you go?” It's really really key, because if you've not considered what your walk away is, if you're not considered the minimum you can go to which means you can pay bills or hit your margins, and really what's not going to damage the business, you can get caught out during a negotiation. So that's something to think about.
Now. The last thing I want to talk about are things that they call Trade Variables.
These are elements that you offer that are of low value to you, but could be a high value to a client and can come into a negotiation, which can be put on the table and offered so you don't have to drop your prices.
Let me give you an example:
One of my clients is a website designer and he does website reviews. Now, website reviews he's previously charged for, and still is charging for, but what he has been doing in negotiations is saying to the customer “Well look, if you go with me for a website, I'll offer you a free website review.”
So that's something that he's using: trade variables.
I have another client of mine that are lighting manufacturers, and one of their trade variables are for businesses with showrooms. They'll do free stands or free samples.
So, these are all things that can be offered to the customer during a negotiation, which keeps the price firm.
Another client (and I've done this myself) has negotiated on payment terms.
So think about them. Think about what you've got. Think about things that you can offer.
And again, it's a case of writing a list down and being really clear in your head about what you can put on the table.
Next week I'm going to talk to you about things that you can do during the negotiation. I'll see you then!