Sales Reinvented

Do you have the right combination of negotiation tools, tactics, and strategies in your arsenal? Do you understand how important it is to develop negotiation skills? In this episode of the Sales Reinvented podcast, Kristie Jones shares some of her favorite negotiation tools. She also gives some sage advice about the negotiation process. Don’t miss it! 

Kristie Jones is the Principal at the Sales Acceleration Group. Kristie is the go-to expert for tech startup founders who want to accelerate their revenue by improving their sales strategy, process, and people. She uses her 15+ years of experience to help small and mid-sized technology companies take their revenue to the next level.

Outline of This Episode

• [0:43] What is negotiation?
• [1:31] Why don’t salespeople like to negotiate?
• [2:39] How Kristie uses anchoring in negotiation 
• [4:01] The attributes of a great negotiator
• [6:20] Negotiation tools, tactics, and strategies
• [7:49] Kristie’s top 3 negotiation dos and top 3 don’ts
• [11:07] Kristie’s favorite negotiation story

Negotiation is a critical piece of the sales process

According to Kristie, negotiation is the process of working toward an agreement on an issue formally not agreed upon. She notes that people don’t regularly see eye-to-eye on numerous topics. So the ability to talk through differences without damaging a business relationship is critical to ongoing and long-term success.

Negotiation gets tricky because people, in general, don’t like to negotiate. Not only that, but most sales reps don’t have the correct formal training or repeatable processes in place that allow them to deal with those situations—and proper training is key. Salespeople have a process for filling funnels. We have cadences and sequences to handle outbound leads, stages in the sales cycle, and more. But Kristie is willing to bet that no one could pull out a repeatable strategy for negotiation. 

Seek to understand your customer

Kristie points out that you have to seek to understand. She handles negotiation like she would an objection and she handles an objection by asking more questions. When a weird question comes up that seems out of left field, assume that the prospect has had a bad experience. Find out the reason the question is being asked. Find out if they have had adverse experiences. Then differentiate yourself from that past bad experience. 

If their question is an unreasonable request, she notes that you are completely free to say: “I wish I could. Unfortunately, this is the situation...” What if you could trade something else for money? If it’s a significant client with nice brand recognition, trade case studies or testimonials for a discount. Or adjust the terms of payment instead of reducing the price. Understanding what is influencing their behaviors can help you reach acceptable terms for both parties. 

Kristie’s negotiation tools, tactics, and strategies

A negotiation tool that Kristie likes to use is calculating the cost of not coming to an agreement. Make a list of costs to each side and write down the disadvantage of not coming to an agreement. Sellers think “I’ve got a lot more to lose than the prospect or customer if this doesn’t come together.” But that’s not always the case. They may lose face with their boss or their team if they don’t make a deal happen. It might not look favorable for them. 

People take negotiation personally—but it’s not your money. It’s the company's money. It is everyone's job to get the best deal for their organization. Kristie also states “Don’t set fire to a bridge you might need to cross later.” Some relationships won’t be repairable if you don’t handle them appropriately. There’s a difference between negotiation and personally insulting or offending the person on the other side of the table. An agitated and upset person will impact your bottom-line more than someone who is happy. 

What buying SIX Acura cars has taught Kristie about negotiation 

Kristie is a huge fan of Acura, so much so that she’s purchased six of them over the last 20 years. She buys all of her cars from a salesman that refers to himself as “The Polish car guy”. Kristie LOVES the negotiation process and haggling and negotiating with her car guy. They’ve developed a nice banter over the years. She waits for one phrase to come out of his mouth and when it does—she knows she’s won. 

She admits she employs the ‘Columbo’ technique. Columbo was a TV detective who would pretend everything was wrapped up and then—on his way out the door—would say “Just one more thing…” She always ends the car-buying process with “I’m going to need new floor mats”. 

Kristie notes that you must be prepared and know who you’re dealing with. Know how they’re going to react. She comes to the table having done her homework and knows the market value of the car is and what competitors are offering it for. Do the same with your negotiation and you’ll have a great foundation to work from. 

Resources & People Mentioned

• BOOK: Never Split the Difference by Chris Voss
• Acura Luxury Sedan

Connect with Kristie Jones

• Connect on LinkedIn
• Follow on Twitter

Connect With Paul Watts 

• LinkedIn
• Twitter

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Audio Production and Show notes by PODCAST FAST TRACK https://www.podcastfasttrack.com

Asking leading questions may not be permitted in a court of law, but in the negotiation process it is inherently necessary to ask leading questions. Asking the right questions is the #1 negotiation tactic that Ian Moyse emphasizes in this episode of Sales Reinvented. We also chat about his negotiation process, attributes of a successful negotiator, and other tools and tactics he utilizes. Don’t miss it!

Ian Moyse is the EMEA Sales Director at Natterbox and based out of the UK. He is also an industry social influencer who is widely published on matters of Sales Leadership, Social Selling, and Personal Branding. He was awarded the accolade of UK Sales Director of the Year by BESMA and in 2019 was listed in the top 50 Sales Keynote speakers by Top Sales World. 

Outline of This Episode

• [0:56] What is negotiation?
• [1:53] Why is negotiation so important? 
• [2:41] Salespeople prefer to avoid conflict
• [4:48] You need to ask leading questions
• [7:42] Practice and preparation is key
• [11:40] Hone your questioning skills
• [14:30] Top 3 negotiation dos and don’ts
• [16:44] Ian’s favorite negotiation story

Negotiation is woven into the entire sales process

A negotiation consists of two parties who both want something different. You have to talk through questions that arise to get to a mutually agreeable outcome—even if it’s not moving forward together. It’s still a negotiation. The more complex and larger the investment the customer is making, the more variance there is. The more they’re creating their own package, the more the customer is likely to want something different. That’s why Ian believes you must ask leading questions. He also notes that you shouldn’t park the negotiation at the end of the sales process. The earlier you can drive what the customer wants and get the hard points on the table, the better.

A negotiation thrives when you ask leading questions

A negotiation is only as strong as the questions you ask. Which is why it should include asking leading questions. You want to gain an understanding of the things the customer is looking for that aren’t standard. Whether its payment terms, technology, or licensing—there will always be something that comes up. 

Ian notes that a negotiation is simply a discussion around what you can or can’t have, where you can meet, how you can adjust things, and whether or not you can come to a mutual agreement. If you can knock out some of the hard questions early on in the process you shouldn’t get blindsided at the end. 

Ian uses the analogy of the Titanic. If the captain had seen the iceberg 10 miles away and made adjustments there wouldn’t have been this big surprise at the end when the ship sank. A negotiation is the same. If you ask leading questions in the beginning, you can usually avoid a sinking ship. 

How to lessen the fear surrounding negotiation

The label “negotiation” often makes a salesperson quake in their boots. Especially because Procurement people are trained how to negotiate and press the buttons of salespeople. They're trained on what to say to a salesperson, what to ask, and how to behave to get the maximum they can out of the process. They are subtle and experienced. 

Another tactic that Ian recommends to prepare for the process and alleviate nervousness is to practice. Practice playing the negotiation out with someone. It’s not about having the answers—it’s the method of discussion that you engage in. Roleplay and practice ahead of time. 

He also notes that if you’re nervous, bring someone along with you who’s more experienced. If you’re the only person negotiating on your side, you spend your time formulating an answer. If there’s two of you, one can take notes and you can alternate answering questions.

Hone your questioning skills

Do you have the knowledge and proper approach so you ask the right questions and handle them appropriately? A customer can ask any question in the world—but it doesn’t mean they’re going to get the answer they want. Likewise, salespeople have the right to ask clarifying questions:

What are the most important things we can address first? Can you elaborate? Can you explain why? Is there anything else you need? Can I clarify what you’re asking? 

Get your counterpart to talk more and put everything on the table. If you can discuss some difficult things at the right time and with the right manner of professionalism it puts you in the best position to win. 

There is no perfect world. Sometimes—no matter how much you prepare and ask leading questions—a negotiation won’t move forward. It’s the nature of business and negotiation. To hear more of Ian’s expert advice, listen to the whole episode!

Resources & People Mentioned

• DISC Personality Test
• Natterbox

Connect with Ian Moyse

• Follow on Twitter
• Connect on LinkedIn

Connect With Paul Watts 

• LinkedIn
• Twitter

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Audio Production and Show notes by PODCAST FAST TRACK https://www.podcastfasttrack.com

Most salespeople can naturally sense tension but are wholly uncomfortable with it. But healthy tension in negotiation is a normal part of the process that salespeople should embrace. According to today’s guest—Melissa Madian—healthy tension is critical to the success of a negotiation. In this episode of Sales Reinvented she talks about how it influences a negotiation and brings value to both parties. She emphasizes understanding the value you offer and holding firm. To benefit from her years of expertise in the field, listen to this episode!

Melissa Madian is the Founder and Chief Fabulous Officer at TMM Enablement Services Inc. She was one of the first people to pioneer the Sales Enablement role and has spent the past 25 years perfecting the sales experience for revenue-generating teams. Melissa is one of the 15 Top Sales Influencers to Follow in 2020, one of the 20 Women Leaders to Watch in Business in 2018 and ranked 10th of the 35+ Most Influential Women Leading B2B Marketing Technology.

Outline of This Episode

• [1:10] Capture value while maintaining healthy tension
• [1:38] Negotiation abilities impact profitability
• [2:47] Negotiation is the entire sales cycle
• [4:10] Melissa’s negotiation process
• [5:34] A salesperson can’t be afraid of conflict
• [7:16] Negotiation tools, tactics, strategies
• [8:12] Melissa’s top 3 dos and don’ts
• [10:42] Why you should always present two options

The inaccurate perception of negotiation

In this episode of Sales Reinvented, Melissa Madian points out that there’s a perception that negotiation happens at the end of the sales cycle. That when we get to that point it’s time to put our gloves on and fight it out. Instead, she emphasizes that you’re always in a state of negotiation. There’s always a balance of give and get. It’s not you versus your customer. 

It’s about answering the question: How am I going to make sure we get value and the seller maintains value? In order to do so, you must maintain healthy tension. Melissa’s definition of negotiation is that simple: It’s capturing value while maintaining healthy tension. 

Maintain healthy tension in the negotiation

Melissa references a McKinsey report in which they shared that for every 5% that we discount our solution or product, 19% of the profit is lost. So when discounts are given because a salesperson would rather concede than operate in tension, all of your value leaks out of the negotiation. It also undermines your position as a valued vendor. 

Melissa notes that you need to go into the negotiation with a plan in place and determine what value each party needs to get. Then you need to decide what kind of healthy tension will you maintain in the negotiation so you don’t give up too much—but acquiesce when necessary. It always comes down to: What value am I providing to the customer? 

Be a personal trainer NOT a bartender

Melissa uses a wonderful analogy of a bartender and a personal trainer. She points out that there is no negotiation process with a bartender. You pay them and they feed you endless drinks until you’re drunk. There is no healthy tension, no give and take. The bartender gives and gives, and you take. 

Instead of being a bartender, you must negotiate like a personal trainer. A personal trainer pushes you towards your goals. At any given time, there might be a lot of conflict in the relationship because they’re pushing you to be better. The balance of the relationship is a healthy tension where both parties are pushed towards the same goal. 

Hold firm to the value you provide

Melissa emphasizes that good negotiators don’t roll over, they curate healthy tension because they know they’re offering something of value to their customer. You must first know the value of what you’re providing and then hold firm to the value you’re providing so that you don’t lose profit and you maintain your credibility. 

In order to know the value you’re providing them you must do your research. You know to know your customer, understand their pain points, and recognize how your product or service is making a positive impact on their company. You must research the potential roles that may get involved, objections that may come up, and do not allow yourself to be surprised by anything that crops up. Do not wing it or you will be blind-sided. 

She also implores: Do not assume that the customer won’t pay more money for what you’re providing to them. Customers do not pay solely because an item is well-priced. They pay for the value that it offers them. If you maintain healthy tension in the process you are more likely to succeed. To hear the rest of Melissa’s negotiation strategies and her favorite negotiation story, listen to the whole episode of Sales Reinvented!

Resources & People Mentioned

• McKinsey report on The Power of Pricing

Connect with Melissa Madian

• Connect on LinkedIn
• Follow on Twitter
• Melissa on Instagram

Connect With Paul Watts 

• LinkedIn
• Twitter

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Audio Production and Show notes by PODCAST FAST TRACK https://www.podcastfasttrack.com

Emotional control in the negotiation process is difficult to master. It’s partly because as a species we are ruled by emotion. It’s difficult to take a step back and let go of the different influences on the negotiation and focus on the facts. In this episode of Sales Reinvented, Jeb Blount shares his take on emotional control in negotiation and why it’s so important to the process.

Jeb Blount is the CEO of Sales Gravy and a Sales Acceleration Specialist. He’s a best-selling author and most recently penned: INKED: The Ultimate Guide to Powerful Closing and Sales Negotiation Tactics that Unlock YES and Seal the Deal. Jeb is a world-renowned keynote speaker and the host of the Sales Gravy Podcast. This episode is packed with information you can use to become a better negotiator—don’t miss it!

Outline of This Episode

• [1:01] Jeb’s definition of negotiation
• [2:04] Negotiation is the precursor to profit
• [3:10] Salespeople find negotiation uncomfortable
• [5:20] The rules Jeb follows in the negotiation process
• [10:01] Emotional control and other important attributes
• [13:16] The MLP Strategy (motivation, leverage, and power)
• [17:18] Important negotiation dos and don’ts
• [20:34] Jeb’s eye-opening negotiation story

Negotiation isn’t an inherent part of western culture

Negotiation is essentially emotionally controlled conflict. Jeb points out that because it’s inherently conflict, it’s difficult for people in western economies to engage in. Negotiation isn’t an everyday facet of our lives like it is in some Eastern cultures, such as India. If you’re in the UK, US, or Canada you don’t negotiate—you pay the price. 

Because negotiating isn’t a part of our everyday existence, we aren’t good at it nor do we like it. There’s a lot of stigma surrounding negotiating. In some instances, if you attempt to haggle or negotiate a price it’s met with contempt and an upturned nose—leaving you embarrassed. When it isn’t a cultural norm, it can feel uncomfortable. It can feel like rejection. It feels like a zero-sum game with distinct winners and losers. 

Unfortunately, most salespeople aren’t properly trained how to negotiate. If they are, they’re trained by someone who typically doesn’t have sales experience. On the flip side, most procurement people are professionally trained negotiators who know what they’re doing and take advantage of that fact. 

Three rules for the negotiation process

Jeb embraces a few rules as part of his negotiation process: 

Rule #1: Don’t negotiate until you’ve already won the deal. Until you’re selected as the vendor of choice, don’t attempt to negotiate—or you’re just negotiating with yourself.

Rule #2: Leverage the negotiation triangle. Make sure you develop a great relationship with someone in the stakeholder group. Once they select you, you’re typically shoved off to procurement who want to lower your prices. It’s nice to have a stakeholder to reach out to if it seems you’re at an impasse.

Rule #3: Incorporate a give-take playlist. Jeb points out that you should never give without taking something in return. He emphasizes that “I want to be able to give things to the buyer that are low-value to me but high-value to the buyer while I take things away from the buyer that are high-value to them.” The more you take, the more painful the negotiation process becomes—thereby compelling them to stop negotiating and align on a deal.

A salesperson must master emotional control

Jeb believes that emotional control is paramount to your success:

“Don't negotiate when you're hungry. Don't negotiate when you're tired. Don't negotiate when you're worn out. Because when you're in those positions, you're more likely to give things away that you don't have to...When you're worn out, there's a limit to your willpower, your emotional control, and discipline.”

He notes that if you’re not in a position where you can exercise full emotional control, do everything possible to reschedule the negotiation so you don’t get into a situation where you're giving away the upper hand to the buyer.

Jeb goes on to share a negotiation strategy that he teaches in his book: The MLP strategy (Motivation, Leverage, and Power). He also shares some powerful negotiation dos and don’ts. To learn more about how he leverages these in a negotiation, keep listening!

A story about the power of emotional control and relationships

Jeb’s company had spent six months going through a discovery phase with a prospect they had worked with in the past. But the deal they were working on was the largest yet. They had reached the final proposal and were selected as the vendor of choice. So the stakeholder group sent them off to procurement to nail down contracts.

Their counterparties procurement team sent them a letter stating that they had found other businesses that can do what Jeb’s company was offering—but at a better price. Jeb’s saleswoman read that letter and lost all emotional control, worried they were going to lose the deal. She was poised and ready to concede and lower their pricing to save the deal. But Jeb knew it was a negotiation tactic and responded accordingly. He let them know that they’d be happy to lower the price to fit the budget, but that something would have to be removed from the deal to do so. 

They came back to the table and quibbled over details for three solid months. The executive team was being pressured by the upper-management to wrap things up because they were now way behind schedule. Jeb received a call from the executive sponsor trying to figure out what the hold-up was. Jeb filled him in and told him that procurement had stalled the process. 

So the executive sponsor made a call to the Senior Vice President. The VP then called procurement. 24 hours later, they received their original contract, signed and ready to move forward. Jeb’s emotional control and relationship-building strategy won them the deal. 

This episode is PACKED with useful resources from a top sales negotiator. Listen to the whole episode to take advantage of his vast knowledge and expertise. 

Resources & People Mentioned

• The Sales Gravy Podcast
• Jeb’s Book: INKED

Connect with Jeb Blount

• Jeb’s Website
• Connect on LinkedIn
• Follow on Twitter
• Watch on YouTube

Connect With Paul Watts 

• LinkedIn
• Twitter

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Audio Production and Show notes by PODCAST FAST TRACK https://www.podcastfasttrack.com

Do you know what it takes to be a successful negotiator? Do you possess some of the necessary skills and attributes? Do you need to brush up on your negotiation skills? In this episode of Sales Reinvented, Mladen Kresic hones in on why salespeople struggle with negotiation. He also shares some of his favorite negotiation tactics and gives some pointers for dealing with the negotiation process. Mladen is full of spectacular insight into the negotiation process. Don’t miss it!

Mladen Kresic is the CEO of K&R Negotiations—aka Negotiators.com. For 30+ years Mladen has successfully negotiated billions in deals all over the world on behalf of the most well-known international companies. His expertise is working with C-level executives in business transactions. He is the author of Negotiate Wisely in Business and Technology, a guide for sales negotiations and an Amazon e-book best-seller. 

Outline of This Episode

• [0:59] Negotiation: an interaction to achieve a result
• [1:12] Why is negotiation important in business?
• [1:50] Why salespeople don’t like to negotiate
• [3:22] Mladen’s value-based negotiation process
• [5:00] Attributes of a successful negotiator
• [6:51] Negotiation tools, tactics, and strategies
• [10:03] Top 3 negotiation dos and top 3 don’ts
• [13:25] Mladen’s favorite negotiation story

Why do salespeople struggle with negotiation?

Mladen notes that negotiation is viewed as an adversarial process. Most sales professionals want to be liked by their customers. They want to please them. To some, entering into a negotiation feels like they’re putting that relationship on shaky ground. But Mladen believes that if they must view a negotiation as a process to achieve a result versus giving it a negative connotation. Doing that will change the process for the better and help you become a successful negotiator. 

Secondly, Mladen sees a lot of salespeople who don’t know when to walk away. They can be so desperate for a sale to meet their quota that they overlook things they shouldn’t. They’re so focused on being liked and reaching a deal that they get frustrated when the deal is dead. They have to learn to walk away when and if necessary. 

How Mladen prepares for a high-stakes negotiation

Mladen focuses his negotiations around what he calls the leverage cycle. It’s value-based leverage that is about delivering an outcome to the buyers. It creates confidence in the seller that they can deliver what the buyer seeks to improve. 

Mladen also focuses on agenda management. Most people think about an agenda in terms of how to conduct a meeting, interaction, or phone call. Instead, Mladen focuses on a macro-agenda, or what the entire process looks like—the resources and activities that need to happen in that timeline. 

Mladen believes it is THE most critical aspect of the process that we should focus on in order to thrive as a successful negotiator.

The attributes of a successful negotiator

Everyone has natural traits that will not necessarily change so you must play to your strengths. Mladen emphases that negotiation is an art AND a science and there are some things that can be learned, but that these traits are paramount to your success:

• Genuine Curiosity: Genuine curiosity is absolutely critical. What makes the other side tick? What do they value? What do they need out of this relationship?
• Confidence without arrogance: A prospect wants to feel that you’re confident in your product/service but are humble in your approach.
• Competence: You need to know your product or service well and be knowledgeable about the counterparty as well. 
• Integrity: Salespeople have a poor reputation because they’re perceived as lacking integrity, which is why this attribute is so important. 
• Compassion: You have to have a level of compassion for the people you’re negotiating with and be able to put yourself in their shoes.

Mladen believes that if a salesperson possesses these attributes they’ll be one step closer to being a successful negotiator. Mladen goes on to share his Risk/Reward tactic, how to break down levels of importance, and other strategies and tactics that are important to the negotiation process—so keep listening! 

Mladen’s negotiation dos and don’ts

Mladen shared some pertinent dos and don’ts in this episode:

1. Listen more and talk less. Mladen admits he’s a type-A personality that loves to talk (as are many salespeople). But to be a successful negotiator, you must purposefully slow your pace and be sure to listen intently and talk less. He points out that you’ll always have the opportunity to say what you need to say at some point. But first and foremost, you want your counterpart to feel heard and understood. 
2. Prepare and plan—don’t wing it. This is where agenda management comes into play. Even if you’re strapped for time, you make time to prepare. It is unprofessional to come into a negotiation completely unprepared. 
3. Don’t make arbitrary concessions. Don’t respond to a request just because they asked. It’s detrimental to one’s credibility and prolongs the process. Instead, Mladen shares that you need to engage in principle concessions: concessions made with credible business rationale. Is the scope too large? Is there a lack of value in the deal? Is there a competitive alternative that is better placed and lower priced?

If you begin to employ some of these strategies in your negotiations, you’ll likely yield more favorable results. Mladen shares his favorite negotiation story and how it changed his negotiation style in the remainder of the podcast—so be sure to listen to the end!

Resources & People Mentioned

• K&R Negotiations

Connect with Mladen Kresic

• Follow on Twitter

Connect With Paul Watts 

• LinkedIn
• Twitter

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Audio Production and Show notes by PODCAST FAST TRACK https://www.podcastfasttrack.com

Are you aware of how your mental mindset impacts the entire negotiation process? Do you walk into a negotiation feeling timid or unsure? Or are you confident and prepared for the negotiation process? Mary Grothe understands how mindset influences the negotiation process and has developed a strategy that she’s found success with. Listen to this episode of Sales Reinvented to hear her take. 

Mary Grothe is the CEO of Sales BQ®, an outsourced RevOps firm of fractional VPs of Sales, Sales Ops, and CMOs who serve companies across the nation by profitably rebuilding their sales & marketing departments and growing their revenue by focusing on the Behavioral Quotient (BQ) and proven inbound + outbound strategies. Don’t miss Mary’s unique insight into the negotiation process!

Outline of This Episode

• [1:04] Mary’s definition of negotiation
• [1:24] Why negotiation is so important
• [2:15] Why don’t salespeople like to negotiate?
• [3:27] A negotiation begins with your mental mindset
• [11:38] Negotiations tools, tactics, strategies
• [13:46] The 4 levers Mary recommends using
• [15:52] Mary’s favorite negotiation story

The negotiation process starts with adjusting your mental mindset

Mary points out that most executives know how to negotiate. If you go into a negotiation knowing that the person on the other end of the table is educated in negotiation tactics, you can go in with a different mindset. You’ll know that they’ll take one look at your proposal and will never agree to the first terms set forth. If you have the expectation they WILL negotiate, it changes how you approach the entire process. 

A lot of salespeople crumble, give in on pricing, and don’t get great margins on their deals. So how does she prepare for the negotiation process? Understand that it’s about getting a win-win for both sides. Then you must calculate your walk-away point: your starting point, your middle point that you present as the walk-away point, and then your full walk-away point. Knowing what each of these numbers are helps prepare you and boosts your confidence.

Remove emotion from the negotiation process

Mary emphasizes that you must remove emotion from the negotiation process—it sets you up for failure. Salespeople are known for “desperation justification”. They have a quota they have to meet by the end of the month or end of a quarter. Most negotiators know this. What if this deal is HUGE and you’re behind on your quota? What if you don’t know your pricing? Do you come across as lacking confidence or knowledge about your product and service?

Trained negotiators—and your prospect—can pick up on your emotion and lack of confidence. Unfortunately, it gives them the leverage they need to negotiate a better deal for themselves. Knowing that you need a deal gives them the upper-hand. But if you remove emotion and any ulterior motives from the process you can level the playing field. Keep listening to hear Mary’s full thoughts on the topic.

The importance of PCE: passion, conviction, and enthusiasm

Mary strongly believes that a great negotiator must embrace ‘PCE’:

• Passion: You must be passionate about your product or service and completely bought-in to solving the prospect’s problem. It helps the prospect become comfortable with moving forward with you.
• Conviction: You must have conviction about how your product/service will help your prospect. Show that you can quantify your problem and present case studies, testimonials, etc. that prove you can solve their problem. 
• Enthusiasm: If you exude enthusiasm and get the buyer bought in and enthusiastic about the sale, you’re shrinking the negotiation game. They’re excited about getting the deal done and less focused on negotiating price and contract terms. 

Mary also notes that salespeople must be assertive and confident. When a salesperson believes they can solve their client’s problem it leads to confidence. There isn’t desperation justification in play—they truly believe in their product. 

The four levers to implement in your negotiation 

Mary shares four ways that you can leverage concessions to make them work for your company, while also giving your prospect what they’re asking for:

1. Are they asking for a discount? Agree to the discount, but ask what item they’re comfortable removing from the proposal.
2. Do they want to decrease the price per item? Offer a decrease in price if they purchase over a certain threshold. 
3. Offer them a monetary concession if they can execute the deal in the next 24 hours. This is a common end of month/quarter strategy that negotiators are accustomed to working with.
4. Agree to some sort of concession if the buyer agrees to give a testimonial, be a reference, or introduce and/or refer people to your product and/or service.

Utilizing some of these negotiation tactics will help each side find a win-win from concessions and come closer to a deal. 

Mary shares a negotiation story that led her to develop her successful negotiation process—listen to the whole episode to hear how it changed her negotiation game!

Resources & People Mentioned

• Sales BQ

Connect with Mary Grothe

• Connect on LinkedIn
• Follow on Twitter

Connect With Paul Watts 

• LinkedIn
• Twitter

Subscribe to SALES REINVENTED

Audio Production and Show notes by PODCAST FAST TRACK https://www.podcastfasttrack.com

The negotiation process isn’t always easy for a salesperson to navigate. But mastering the process is paramount to your success. The bottom line: if you can’t negotiate well you won’t fare well in anything you do in life. In this episode of Sales Reinvented, Chad Burmeister joins me to talk about some of the parts of the negotiation process that salespeople shy away from—and how to change it. 

Chad Burmeister is the Founder and CEO of ScaleX.ai, which promises to deliver an “unfair competitive advantage” by helping your salespeople increase lead frequency and sales competency. He is the author of multiple books, including AI for Sales and Sales Hack. Don’t miss his stellar insight on the negotiation process. 

Outline of This Episode

• [1:29] Our lives are built on negotiation 
• [1:59] Salespeople aren't comfortable discussing money
• [4:45] How to master the negotiation process
• [6:29] Salespeople need to understand the customers’ problem
• [7:58] Chad’s favorite negotiation closing technique
• [8:55] Chad’s FUN acronym
• [11:15] How one negotiation changed Chad’s life

The importance of negotiation

Chris Voss was the first to make the phrase “everything is a negotiation” popular—and for good reason. Chad points out that nearly everything we do involves negotiation. When you make a purchase, engage in a conversation, or play with your kids, some sort of negotiation is involved. Chad points out that it’s well worth any monetary investment to go from a ‘C’ level negotiator to an ‘A+’. Perhaps that change in status means more bookings, more revenue—maybe even fame and fortune. Whatever it is you’re trying to achieve in life can be benefitted from mastering negotiation. 

Understand that the negotiation process means you’ll talk about Money

The Objective Management Group has studied close to two million salespeople and found that only 54% are comfortable discussing money. A salesperson NEEDS to be able to comfortably discuss money in the negotiation process—yet most can’t stomach it. Chad sees that as one of the biggest roadblocks to a successful negotiation. 

Chad notes that the discomfort associated with discussing money is often associated with the way you were raised. Did your family have money? Were they savers or spenders? Did they avoid discussing money at all? If you can understand your money mindset and buying pattern, you can learn how to master this part of the negotiation process. 

Instead of letting a prospect walk away to “look at other vendors” you have to be comfortable pointing out what you discussed. “I thought we’ve discussed your priorities and requirements? You’ll save a million and increase sales by 5.4 million. Why do you need to look at the other vendors?” Chad shares another story about haggling in Mexico that drives the point home—so keep listening. 

Roleplay the negotiation process

When Chad completed his MBA, he took a class on power, politics, and negotiation. They spent a lot of time role-playing negotiations. Roleplaying in class with other students was the catalyst he needed to learn the negotiation process inside and out. 

Aside from consistent practice, Chad recommends taking a class or reading a book—you can even play poker. Learning the art of poker is a great way to learn how to see people’s tells, when they’re exaggerating, etc. 

Chad also believes you need to master closing techniques. Instead of “let’s schedule our next step meeting” at the end of a meeting, ask “If I could... would you…?” You’re essentially giving them an option to voice any objections they have to closing the deal in that meeting. 

To hear more of Chad’s advice—including his thoughts on gap selling—keep listening!

How Chad’s negotiation process changed his life

Chad’s second job out of college was with Airborne Express. He had set up a meeting with Uhaul about some packages they had been shipping with USPS They were shipping packages of license plates for $4.50. The Uhaul would meet the USPS truck in whichever state the plates were to be delivered. They send 12,000 of these a month. 10% of the time, the USPS truck didn’t make it in time and the license plates got shipped back. So Chad took the time to dig and find out the impact of the 10% of trucks that were missed.

Other than being fined, every once and a while a cop would sometimes pull over Uhaul trucks with expired plates and make them empty the contents from one truck into another. So with the fines, he calculated Uhaul was spending $5.87 to ship the new license plates. Airborne typically charged $6 to ship, but he offered to do it at $5 and demonstrated the total cost of ownership that would save Uhaul money. 

Chad won the account—1,000 shipments a month. Then he won the Canadian account, which was 2,000 shipments a month. He went on to become the #1 salesperson at Airborne. Eventually, he got recruited away to a job in southern California where he met his wife and started his family—all because of the outcome of ONE negotiation. 

Listen to the whole episode of Sales Reinvented for Chad’s insight on the negotiation process. If you’re looking to improve your skills—this is the place to start!

Resources & People Mentioned

• ScaleX
• Chriss Voss on YouTube
• Robert Cialdini
• Gap Selling by Keenan
• Objective Management Group
• Airborne Express
• Episode 183 of Sales Reinvented

Connect with Chad Burmeister

• Connect on LinkedIn
• Follow on Twitter

Connect With Paul Watts 

• LinkedIn
• Twitter

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Relationship building is an important aspect of the negotiation process, according to Dr. Daniel Shapiro. Whether you’re negotiating with a prospective customer, negotiating with a spouse, or negotiating with another country—it all hinges on the ability to build a relationship. In this episode of Sales Reinvented, we talk about building relationships, attributes of a great negotiator, top 3 negotiation dos and don’ts, and much more. Don’t miss this one!

Dr. Daniel Shapiro is a world-renowned expert on negotiation and middle-east politics. He was the US ambassador to Israel from 2011–2017. He also founded and currently directs the Harvard International Negotiation Program. Dan consults regularly for government leaders and Fortune 500 companies and has advised everyone from hostage negotiators to families in crisis, disputing CEOs to clashing heads of state. He is also the author of two best-selling books, Negotiating the Nonnegotiable and Building Agreement: Using Emotions as You Negotiate.

Outline of This Episode

• [1:06] Humans are constantly negotiating
• [2:05] Changing the negative perception of negotiation
• [3:49] Dan describes the pillars of his negotiation process
• [7:37] The attributes of a great negotiator
• [8:44] Allow your customer autonomy 
• [11:44] Top 3 negotiation dos and don’ts
• [17:05] Dan’s favorite negotiation story

The entire sales process consists of negotiation

The common misconception of negotiation is that it’s just one part of the sales process in which costs are debated. The reality is that the entire sales process is a negotiation. Anytime you interact with someone else with a purpose in mind you are negotiating. Most salespeople love their jobs and it’s simply one part of the process that brings them more stress. How do we change that? 

Dan states that you must change how you view the negotiation process. Firstly, you must focus on building a relationship with the customer. Many salespeople naturally excel in relationship building. Secondly, you must listen with intent: Figure out what your counterpart actually wants and where their interests lie. 

The process doesn’t have to encapsulate an “us against them” mentality. You should present options for mutual gains and invent new ideas with the customer. Be innovative with your approach so they don’t move on to the next salesperson. 

The pillars of Dan’s negotiation process

Dr. Dan emphasizes throughout the episode that relationship building skills are key. The first pillar that he sets forth is all about building the relationship. Building a relationship is your greatest source of influence now AND into the future. The more you can build a good trusting relationship with some sense of connection the more effective you will be in the negotiation process.

Per Dan, “The most effective negotiations by and large—in the business realm and the international realm—are side by side. They are cooperative.”

Conversely, no salesperson is in it just for the relationship. They are also motivated to make a good sale. Aside from building a relationship with the prospect, you need to be keenly aware of their interests. What’s motivating their behavior other than getting a good deal? Are they hoping for a promotion? Is their budget quite low? Dan acknowledges there could be 1,000 different reasons—but it’s your job to find out what those reasons are. 

With the foundation of a relationship and the knowledge of what motivates them, you can work to craft a potential agreement that meets their interests—and yours. 

The importance of autonomy

A great negotiator is an avid listener. They learn what their counterpart cares about, what they want out of the relationship, what they’re fearful of, and what they’re dreams and aspirations are. They don’t listen to exploit, but they listen to craft an agreement that works for everyone. You must remember that your counterpart wants the freedom to make decisions without it being imposed on them. They want autonomy. 

Dan first became aware of this concept when he was a teenager shopping for jeans at Gap. The slightly older teenager assisting him was showering him with compliments and telling him how great he looked in the jeans. Dan realized he couldn’t decipher if the compliments were real—or just being used to make a sale and therefore a commission for the pushy teenager. 

Instead of pushing someone into a sale, allow them the autonomy to make their own decision. Share the attributes of the product, why it meets their interests, and why your pricing is fair while allowing them the freedom to walk away. If they can find a better deal with someone else, then let them know that you won’t stand in their way. Doing this builds trust in your customer relationship. Having their best interest in mind speaks volumes.

The power of appreciation in relationship building

Dan believes that the power of appreciation is the single most important thing to apply to a negotiation. He emphasizes that in ANY human interaction we want to feel heard, understood, and valued—appreciated on a deep level. Yes, you want to come to a deal, but deals don’t happen on an emotional level if the other side doesn’t feel appreciated and respected. It’s more than a thank you. It’s listening to try and find value from their perspective. To find merit in what they’re feeling, thinking, communicating, and understanding. 

It isn’t an adversarial or antagonistic approach, but one bent on understanding their perspective and shifting into their seat on a psychological level. If you can truly understand their perspective and appreciate where they’re coming from, it can change the course of the negotiation. Dan shares a powerful negotiation story about how cooperation and understanding in a negotiation lead to more effective outcomes. Listen to the whole episode for more of his negotiation expertise. 

Resources & People Mentioned

• BOOK: Negotiating the Nonnegotiable

Connect With Paul Watts 

• LinkedIn
• Twitter

Connect with Dan Shapiro

• Dan Shapiro Global
• Dan on LinkedIn
• Dan on Twitter

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Do you view negotiation as a conversation? Or a battle with clear winners and losers? Nicole Soames joins me in this episode of @SalesReinvented to start the conversation surrounding negotiation—and reveal why so many of the mindsets salespeople have regarding negotiation are faulty. She shares common misunderstandings, how to prepare for a negotiation, and much more.

Nicole Soames is the CEO & Founder of Diadem Performance, a commercial skills training and coaching company. She is passionate about applying emotional intelligence to negotiation conversations. Nicole is a best-selling author and sought after coach whose savvy advice is revealed in this episode of Sales Reinvented. Be sure to listen!

Outline of This Episode

• [0:49] Nicole’s definition of negotiation
• [1:07] Negotiation is a conversation
• [2:52] Why salespeople don’t like to negotiate
• [5:46] Negotiation isn’t a process—but a conversation 
• [8:04] Emotional intelligence is the #1 attribute you must possess
• [9:56] There are no shortcuts: negotiation preparation is key
• [11:43] Nicole’s top 3 negotiation dos and don’ts
• [13:24] Don’t engage in negative internal conversations
• [14:35] How children are powerful negotiators

Common misunderstandings about negotiation 

Many salespeople mistake negotiation for haggling or bartering. If you shift your viewpoint to negotiation as a conversation, you’re better equipped to build a long-lasting relationship. People are only as powerful as the conversations they have. Nicole believes we achieve results based on the conversations we have with others. Everything is negotiable—but you can only receive if you first ask. 

Another faulty misconception is that salespeople are schooled in the philosophy that the customer is always right. So when they enter a negotiation conversation, they have placed the customer on a pedestal. By doing so, they cede control and power to the prospect and end up paying dearly for those relationships.

Salespeople are usually engaged with a procurement person—who is well-versed in negotiation tactics. Because each of these people are leaning on their learned skills, a negotiation conversation often ends in disagreement, deadlock, and disappointment. What is the easiest way to avoid that? Keep listening to find out!

Negotiation needs to be a conversation 

Most people who have received negotiation training are taught that it’s a process—it’s linear and theoretical. Nicole is quick to point out that it shouldn’t be viewed as a process but as a negotiation conversation. Thinking about it as a conversation changes the way you engage in the negotiation. You should approach your conversation by contemplating answers to these questions: 

Why should I feel confident? What will their challenges be? How will I handle them? Am I exhibiting an appropriate level of ambition? How will I break the deadlock?

Approaching your conversation with emotional intelligence is the largest differentiator and competitive advantage that Nicole can see. You must remember that you’re negotiating with a human. There is a real person on the other side of this conversation. It’s why Nicole advocates for face-to-face communication whenever possible (versus email). 

How to prepare for your negotiation conversation 

There are no shortcuts. Preparation for a negotiation is paramount to its success. One unique tactic that Nicole recommends is to “big yourself up”: write down all the reasons you should feel confident in the negotiation conversation. Build yourself up and read it to yourself. Don’t allow yourself to fall trap to inner conversations that say things like “They won’t say yes” or “Everyone is having a difficult time right now”. 

Secondly, you must prepare for any curveballs that may come your way. Nicole emphasizes that forewarned is forearmed. And while you want to prepare for variables, she believes that you should NOT prepare a walkaway point. Doing so is admitting defeat and claiming that it’s okay to fail. Nicole believes that you get the best results when you’re challenged and under some pressure. To hear Nicole’s top negotiation 3 dos and don’ts and her ‘ABC method’ keep listening!

Learn the art of the negotiation conversation from your children

Nicole admits that children are expert negotiators. What makes our children SO good at negotiation? Think about it—children are relentlessly ambitious. They use every overt tactic in the book and wind parents down until they get what they want. “All of my friends have this” or “All of their parents allow that” is a very effective strategy. Nicole admits she smiles every time she sees her children negotiating with her. They are ace negotiators and we can learn a lot from them. 

Talk about some unique insight. To hear the rest of Nicole’s thoughts on viewing negotiation as a conversation, be sure to listen to the whole episode! 

Connect with Nicole Soames

• Follow on Twitter
• Connect on LinkedIn
• Diadem Performance
• Nicole’s Books

Connect With Paul Watts 

• LinkedIn
• Twitter

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Keld Jensen—today’s guest on the Sales Reinvented podcast—feels that many businesses struggle with the negotiation process because they aren’t focused on a collaborative negotiation. Unfortunately, they embrace the mindset of ‘needing to win’ at all costs and focus on squashing the competition. Keld shares WHY this is the wrong mindset to embrace and what a collaborative negotiation should look like. Don’t miss it!

Keld Jensen has over 30 years of experience in negotiation. He is the founder of the SMARTnership negotiation strategy—THE most awarded collaborative negotiation strategy in the world. Keld has written and published 24 books in 36 countries. He runs a consulting and training organization that works with governments and businesses around the world to change how they engage in negotiations. Don’t miss his years of expertise—listen to this episode now!

Outline of This Episode

• [0:52] Keld Jensen weighs in on negotiation
• [1:37] Revenue can only be created with negotiation
• [2:30] Salespeople can be unconsciously incompetent
• [3:30] Keld’s collaborative negotiation process
• [5:15] The attributes a successful negotiator espouses
• [7:06] What a SMARTnership looks like 
• [8:54] Top 3 negotiation doss and don’ts
• [11:32] Keld’s unique negotiation illustration

What does a collaborative negotiation look like?

Negotiation isn’t just about reaching a mutual agreement, but about improving collaboration. Keld points out that it’s not about winning something at the cost of the counterparty. The great negotiators don’t set out to be great, they set out to make a difference for their counterpart.

Negotiation is important because revenue isn’t created without it. The second you have to interact with another organization it requires negotiation. Embracing a collaborative negotiation strategy is just as important as a market strategy or a research and development strategy.

Yet many negotiators rely on out-dated tactics that are about winning at all costs. Listen to hear how Keld seeks to change the world of negotiation. 

Negotiate how to negotiate

Keld believes that salespeople don’t necessarily hate the negotiation process, but that they’re “unconsciously incompetent”. They don’t know how to properly negotiate. But once they understand the concept and the value negotiation creates it changes their viewpoint. The 1st mistake salespeople make when negotiation is that they don’t prepare.

A step that Keld believes is imperative is to negotiate on how to negotiate with your counterpart. You can’t walk into a negotiation thinking you’re playing a game of chess when your counterpart believes they’re playing tennis. So how do you remedy that? Keld recommends having a pre-meeting with the sole purpose of learning how to negotiate together.

If you take that small piece of time to make sure you are on the same page in the negotiation process, it removes wasted time. You’re setting the rules for the negotiation to follow and it transforms the process. 

The importance of listening

Keld believes many negotiations fail because too much time is wasted arguing. Too much time is spent on claiming why your product is superior. You must eliminate argumentation and product promotion and instead spend your time listening. Listen for what’s in-between what they’re saying. 

If the prospect asks you if you can deliver a product 2 weeks early, instead of immediately giving a yes or no answer ask: What is the value to you if I can move up delivery time? You need to think about their values and interests in every part of the process. 

Keld says to consider the question: “Are you willing to take a cost if the benefit to the counterpart is bigger than the cost and if the counterpart is willing to compensate you for that cost?” It’s all about figuring out who has the higher value compared to the lower cost. 

Your negotiation strategy should lead to a SMARTnership

Many negotiators embrace “zero-sum” tactics—which is winning at the expense of your counterpart. Instead of landing on a zero-sum strategy, Keld believes you should aim for a high-level collaborative partnership instead. His collaborative negotiation strategy is all about showing a genuine interest in your counterpart and building a relationship.

Keld also points out that up to 42% of the value in a negotiation is often left on the table. To avoid that, you must establish the NegoEconomics—the difference between your value and my cost. This needs to be calculated before engaging in the negotiation process. 

A collaborative negotiation process must involve transparency, openness, and honesty. If you’re honest, you will always leave the table with better results while generating a higher level of trust with your counterpart. If you generate a high level of trust, it reduces transactional costs, and profit tends to increase. 

Keld shares his top 3 dos and don’ts as well as his favorite negotiation story in this episode of Sales Reinvented. Listen to the end to soak up all of the value he has to offer. 

Resources & People Mentioned

• SMARTnership

Connect with Keld Jensen

• Keld’s Website
• Connect on LinkedIn
• Follow on Twitter

Connect With Paul Watts 

• LinkedIn
• Twitter

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