Be Fair

When negotiating, most sellers believe buyers have all the power. They have the money and can very easily buy from a competitor. In our Value-Added Negotiating class, we ask buyers who has the most power. Buyers respond with the seller. Buyers need what the seller has to offer. Sometimes competitive products and services are not as good.

Power in negotiating is a state of mind. It’s a perception. If you perceive your customer has all the power then they do. If you perceive you have the power, then you do. Remember, you have the power to walk away or choose not to make a deal.

Try this at your next sales meeting:

Want to learn more about how your people negotiate? Consider using the following exercise at your next sales meeting with your team. Focus on being fair; use the following scenario to gauge how your team determines what is fair.

You are the sales manager. You have one new company car. You have the opportunity to give the car to one of the following sales people. Who gets the new company car and why?

SALES PERSON #1 He has been with the company 17 years—longer than any other sales person. Giving him the car shows you appreciate his loyal service with the company.

SALES PERSON #2 She has been with the company six months and is progressing very well. Giving her the car would be motivating and cause her to be happy with the job.

SALES PERSON #3 His company car is the oldest in the fleet. Service is becoming a problem. Giving him the car shows you care.

SALES PERSON #4 She has the largest territory and her car has the most mileage. It is time to replace the car. By replacing her car, you reduce the chances of roadside problems.

SALES PERSON #5 She is well over quota for the year. That is what counts. Show her your appreciation.

SALES PERSON #6 He has the most profit year to date. If you give him the car, profit is encouraged.

Who should get the car? Why?

This exercise will prove that “Fair” is in the eye of the beholder. Buyers and Sellers perceive fair differently. This enables your team to empathize with their prospects and level the playing field. Using the term “fair” during a negotiation lowers tension and builds trust if communicated in a calming tone. One of the worst things you can do during a negotiation is leave not knowing how your customer truly feels about your solution, your company, and most of all you. Don’t assume you know. Ask!

Click here for a PDF file of this exercise. Be prepared before you negotiate.