How Adopting a Collaborative Approach to Sales Negotiations Can Unlock More Value
Popular culture would have you believe that closing a cut-throat deal is admirable. In reality, there is strength in recognizing that you operate in an ecosystem. Adopting a collaborative approach to sales negotiations can improve your bottom line and give rise to a healthier business environment. Here are some ideas to bear in mind for an upcoming negotiation.
The Disadvantages of a Win-Lose Approach
Even in one-off sales, you can compromise your brand's reputation by veering towards an aggressive, competitive approach. Driving a hard bargain can also affect the quality of the product or service. Conveying this to the domineering figure on the other side of the table can set the negotiation on a more favorable path.
Open and Accurate Communication
When you hold more power than the counterparty, the collaborative approach to negotiating shows them that you're not interested in exploitation. Open and cordial communication underpins this cooperative style of doing business. You don't have to lay all of your cards on the table, but be transparent about relevant aspects of the deal to transact in good faith.
You also want to make sure you have your facts straight when you're hashing out the finer points on pricing, product selection, or lead times, for example. Verbal contradictions of written clauses cause what can feel like an endless back and forth and undermine trust.
Plan for Success
Do your research and predict how you might get pushback on some of your targets and vice versa. Scenario and contingency planning can map out the trajectory of the negotiation. This preparation will allow you to stay calm and focused when faced with curveballs.
Plan for Failure
The goal is not submission but collective problem-solving to optimize mutual gain. With that in mind, it's prudent to include a clause outlining a fair penalty if aspects of the contract fail to be met by either party. If your business operations grind to a halt because of an oversight on the other party's end, there should be suitable repercussions.
Review the Last Few Negotiations With a Vendor
When there's a history of give-and-take between two parties, you can assess whether to concede in memory of previous concessions offered by the other party. It's important to sustain relationships, but if a relationship no longer serves you well, perhaps it's time to cut your losses.
Acing the Sales Contract Presentation
How you present the sales contract can significantly aid or hinder the negotiation process.
Pay attention to the following details to make your sales contract user-friendly and neat and to align both parties' expectations:
Put together a short but comprehensive document rather than a massive tome.
Where possible, use layman's terms rather than legalese.
Stick to one idea per bullet.
Use white space to guide the eye and reduce reader fatigue.
Use a PDF to Word converter to easily edit or remove unnecessary content.
Benefit From Your Local Chamber of Commerce
Symbiotic corporate relationships create the conditions for profitability and longevity. These relationships can be more crucial than short-term monetary wins.
Join your local chamber of commerce to find networking opportunities, upskilling events, and discounts for your company.
This Member To Member Deal is promoted by Fountain Hills Chamber of Commerce.