The

establishment

and the beginning

of sales

negotiating

strategies

Intermediate

sales negotiating

strategy

Ending sales

negotiating

strategy

Negotiating

drives

Handling problem

negotiations

Handling the

angry buyer

Negotiation & Mediation Skills

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5

5. Pass out completed index cards &

read your new card out loud & then try

to guess who wrote it.

6. The person that was guessed will say

"yes" or "no" depending on if it was

their card or not.

7. Who wrote the note card can briefly

explain their story

8. Only gets one guess. Everyone can

reveal which card was theirs.

1. Pass out an index card & don’t do anything with

them until given instructions.

2. Write down an interesting thing they have done.

Don’t share your answers with anyone.

3. Examples: "I ate bugs before", "I once drank a

gallon of milk", "I lived in seven different states".

Something that not everyone would already

know about them.

4. Pass your index card to me.

Whodunit allows participants to learn

interesting facts about each other

Icebreaker

15 minutes

End

Individual Exercise (15 mins)

There are 4 flipcharts around the room

1. What are you leaving behind to be here today?

2. What do you want to take away from today?

3. What are you offering to the group today?

4. How would we like to work together today?

Visit each in turn & add your comments

Ground rule games

Listen to others

Don’t put other people down

Respect Confidentiality &

Trust

Show Respect

Don’t Interrupt others

Try to accept others views

Classroom Procedures and General

Information

The Bathrooms are where

The Break Refreshments include:

The Room for Lunch is whereLunch menu

A vegetarian option is offered

Cell phones on off

Please don’t email or text during course

Every sale is a negotiation

Negotiation Close

have a fair deal

Be positive! Be helpful! Be concerned!

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Negotiation is getting what you

want from the other person -- no

matter what.

We all know how bargaining works.

You ask for a lot, and wind up

settling for something in the

middle.

Negotiation is a

discussion between

people, with the goal of

reaching an agreement on

issues, and separating

the parties when neither

party has the power to get

its way

Negotiation is an attempted trade-off between

getting what you want and getting along with people

Please write a 1 sentence definition of

N E G O T I A T I O N

Negotiation questions

Negotiation -- remember

What aspects of the negotiation will indicate it

is proceeding well or poorly?

What will tell you that it is time to caucus?

What signs will you use to decide when a

change in negotiators is necessary?

What constitutes a "successful"

negotiation?

“2 elements are

essential:

Reasonableness

&

Flexibility.”

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Preparation Objectivity

Strategy Technique

The basic components

1. Prepare for negotiation if you want to succeed.

2. Assess your strengths, weaknesses, and goals. Successful

negotiators make a point to "accentuate the positive.“

3. Plan a realistic course of action based

on sound preparation and objective appraisal of resources.

4. Combine a wide range of skills; draw on

experience and self-discipline.

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A common complaint of many buyers is that salespeople are

oftentimes rude, particularly to receptionists

Professional department with the receptionist is critical.

What determines whether salespeople receive the receptionist’s assistance is dependent

on the behaviour they exhibit with that person.

Product-Related Approaches

Product or ingredientProduct

demonstration

Name as many different approach strategies as you

can, and briefly give a sales example of each.13

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The negotiation process

BATNA

The Best Alternative To a Negotiated Agreement;

the lowest acceptable value (outcome) to an

individual for a negotiated agreement.

Your BATNA "is the only standard which can

protect you both from accepting terms that

are too unfavourable and from rejecting

terms it would be in your interest to accept.”15

Appropriate and inappropriate

handshakes

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Ending sales negotiating strategy

What's the point ?

Ask half the class to exit the room for 2 minutes. While they are out

debrief the remaining group to pair up with each of their colleagues

when they re-enter the room and to ask his/her partner to raise their

arms in front of them so that their palms are facing them.

There are 2 ways to influence people.

Discussion & Debrief :

It's human nature , we instinctively resist if we are forced to do

something without understanding the reason behind it. This activity

clearly shows this practically and it was very clear in the first round

when participants started pushing their partners without any

explanations , instinctively their partners started to resist them.

Alternatively on round 2 when each participant explained the reason

why he wants his/her partner to accompany them to the other side of

the room there was no resistance at all.

15 minutes

End

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Negotiate

This activity should be reviewed by discussing how the negotiations progressed,

what was learnt and how this might help with future negotiations

Place participants into teams. Give each team a small, but identical item i.e. a paperclip, pencil, biro etc..

The task for each team is to ‘trade’ the item with members of the public (if participants are allowed off-site)

or with office colleagues (if contained within the building). They should try and trade the item for

something bigger and better and once they have traded for the first item, they then trade that item.

The idea is that the participants progressively end up with an item that is bigger and better than the one

before. The winner is the team that arrive back to the start point on time and has the final ‘biggest

and best item’ as decided by the trainer.

Note: It is best if each group can be ‘supervised’ by an impartial facilitator who ensures fair play by each

group. No bullying is allowed and all negotiations must be conducted to strict guidelines (if they can follow a

process outlined from the training then more the better).

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‘Tea and coffee memory game'

Who remembered the most accurately?

Consider/ discuss what helped or hindered their own

memorizing process.

What sort of system/ structure would help

memorization of these drinks orders? Extend this to

the importance of structuring information of all sorts -

especially random unstructured details - to help

people access, absorb, retain and use it.

What sort of structured systems of information and

communications can improve our ability to absorb

and retain information better.

Listen to and remember what each person

says.

Take it in turns to say what you'd like to

drink: (tea, coffee, with or without milk,

with how many sugars or without, or

water, still or sparking).

When you've heard everyone's drink

requests, (individually) write them down

on a piece of paper, as correctly as you

can recall them, including who wants

what, rather than just a list of the

choices.

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As a sales staff you are seeking a mutually beneficial relationship with your

prospects and clients, not something that benefits only you or them

Why do you need to

negotiate with customers

in the first place?

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Sales negotiation can be a formal event at a specific time and date or it

can be ongoing at different points in the sales process

1. Prospecting and qualifying

2. Planning the sales call: The pre approach

3. Approaching the prospect

4. Sales presentation and demonstration

5. Negotiating resistance and objections

6. Confirming and closing the sale

7. Following up and providing after sales service

Negotiation with the prospect usually begins after you have had the opportunity to

present your products and services or after step 4 in the sales process

At this point, you will be able to gauge

whether the prospect

objects

is indifferent

is sceptical or

accepts your product or service

Natural selection favored humans who were able to quickly identify threats to build

relationships. We’re all able to do that today by simply reading facial .expressions.24

We have gut reactions in 3

seconds or fewer

Emotions make a more lasting imprint than

rational thoughts.

Emotions are processed 5 times

faster than conscious thoughts25

Acceptance :

Customer agrees

with your benefits

and has no

negative feelings

toward your

product

Scepticism :

Customer is

interested in a

particular benefit,

but doubts

whether your

product can

really provide the

benefit

Objection :

Customer

displays

opposition to your

product

Indifference:

Customer shows

a lack of interest

in your product

because of no

perceived need

for its benefits

SO why do you need

negotiation skills?...

To be able to change customer attitudes towards your products and services;

Bottom line

....... to win more customers and

improve profits for your organisation26

Negotiating with prospects and

customers

Must be undertaken within the

context of the sales process So what does the sales process entail?

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Before negotiation begins...

Be prepared to be patient (which can lead to higher

trust between you and your prospect)

Be confident in the value your product or service will

provide your prospect

Be prepared to work toward a solution that works for

both you and your prospect

Know in advance at what point the negotiation is no

longer beneficial to you and your organisation and be

prepared to walk away

Avoid negotiating unless you have had an

opportunity to fully present your products

and services

Understand the objections raised by your

prospect and identify what your prospect

or customer’s main points of interest may

be based on these objections

Be prepared to illustrate how your offering

will benefit them and quantify the value

they will get

(if possible)

Negotiating with prospects and

customers

During negotiation...

Listen

Use open ended questions to confirm your

understanding of their needs.

Be prepared for tactical responses from

prospects and customers – such as

exclamations after you explain the terms of

your service (eh, aya! etc.) or silence – don’t

react and instead respond with more

questions

Don’t rush to fill pauses with more talk – be

comfortable with moments of silence

Be prepared to make slight

adjustments for your prospect

if possible e.g.. Adjust the

product/service offering, loan

payment terms etc..

Try to identify small things

you have both agreed on to

help develop positive

momentum – summarize these

agreements periodically

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After the negotiation...

If you did not make a sale…

Sincerely thank the prospect for their time

Avoid appearing annoyed or disappointed

Give the prospect an “out” or an opening for

them to come back to you/your organisation in

the future (have this statement prepared)

For your next negotiation, review the points

that seemed to prevent the negotiation

process from moving forward – study them, know

them, and act accordingly

If you are able to make a sale…

Summarize verbally and/or in writing the

details of what you and the customer have

agreed on as the terms of the service

Thank the customer/ prospect for their time

and reinforce the purchase decision

For your next negotiation, review the points

that seemed to help move the negotiation

process forward – study them, know them, use

them

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Handling objections and

resistanceProspects and customers raise objections for a

myriad of reasons

– Some people will almost always raise

objections, even if they really need the

product/service

• They may be people who naturally raise

objections as a matter of buying technique

or negotiation strategy

– The prospect may seek reassurance that the

product/service will perform or yield the

benefits promised

– A few prospects will raise objections merely

to irritate you the salesperson

Some prospects raise objections so that they can

bargain for a better deal. Irrespective of how good

your terms may be compared to the competition,

some prospects are obsessed with getting an even

better deal so that they can feel “victorious.”

Prospects may raise an objection because they have

a bias against the your organisation or type of

service or, in rare cases, simply dislike you the

salesperson.

Objections can be defined as statements, questions, or actions by the prospect that

indicate resistance or an unwillingness to buy . . . at least yet33

Identifying and negotiating the prospect's most important or key objection is

the first step to negotiating total prospect resistance.

One subtle way is by engaging the prospect in informal conversation before

the sales presentation and encouraging him or her to reveal personal concerns

and perspectives on problemsWhich other ways

can you think of?

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PROSPECT

SA

LE

S P

ER

SO

N

Win Lose

Win Both the prospect and the sales person are

satisfied with the terms of the sale and a

good business relationship develops

The salesperson is satisfied with the

sale but the prospect is not. He may even

feel manipulated or taken advantage of. The business

relationship is in trouble

Lose The prospect is satisfied with the sale but

the sales person feels manipulated and

may reciprocate in future negotiations or

reduce customer service. The business relationship

is in trouble.

Both parties are dissatisfied with the

sale thus the bond of trust between

them may be so damaged that they

are unlikely to enter into any future

business relationship.

Negotiation outcomes

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Pinpoint the need

Focus on the need i.e.. Why a loan will be

beneficial to the prospect and enumerate

the benefits s/he would derive from the

loan.

A’s prospect appears skeptical about the

process and indicates so, stressing that

he knew people who had been made

similar promises but went through a lot of

stress to obtain loans.

She ignores his comment and begins to highlight the benefits to

be derived from such a loan.

Strategy Approach

Vinegar – Honey

Start with the cheapest possible product

or service but one which still has benefits

for the prospect.

A approaches one of her prospects and

informs him that he can access a loan

with very little effort – she goes ahead to explain

the procedure for obtaining a loan from her organization.

Negotiation strategies

Practice with the

cheapest

product/service on

your listing.

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Strategy Approach

Challenge

The prospect throws a challenge at A in an effort to win some concessions.

The prospect goes quiet for a while then tells A that

he needs a loan of RM 5,000 but wants to be able to

negotiate the terms of payment because he knows

two people from his office who got a similar deal.

Limited Authority

Limited authority is an attempt to postpone the decision on a pretext to get approval from a

competent authority. Whereas the real aim is to gain time for reconsideration, and/or

keeping the prospect still interested in the service for a reasonable period of time until a

win-win situation is achieved.

A says, ‘those two people you are referring to took huge

loans and so were given the opportunity to negotiate their

terms of payment’ . But she indicates that she will speak to her boss about it.

Defer

Deferring strategy allows the negotiators time to reevaluate their positions.

Deferring a decision often proves that patience pays.

Please excuse us while we discuss ways in which

we might provide you a better offer. Would you

please reevaluate your position too?

Good Guy/Bad Guy

The good guy / bad guy is an internationally used strategy. One member of a team takes a

hard line approach while other member is friendly and easy to deal with.

When bad guy steps out for a few minutes, the good guy offers the deal that under the

circumstances seems too good to refuse. Bad guys usually comprise spouses, lawyers etc.

Based on your experience on the

field, how would you act out the good

guy/bad guy strategy to your favour?

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Speaking of calls to action…

Here’s how1. Prime to act with a sense of urgency

2. Give instructions on what to do in order to get started

3. Assure that peers already use the service for their own

benefit38

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This is a simple but powerful sales activity that can help you show value of your product/service to a

customer requesting a discount or comparing your product/service to a lower priced competitor

Value Exercise

Pick a participant and hold out two objects (pens, pieces of paper, etc.). Offer to sell him one for RM100

and one for RM1. Ask him which one he would like.

The 2nd stage of anger is quieter, more thoughtful than stage one.

Step 1: Safely regain your emotional balance

Identify your anger cues

Regain your emotional balance instead of harming others

What is your way of calming down when angry?

How often do you do it when angry? All the time, some of the time or

never?

Step 2: Write it down in more detail

Describe the anger-provoking experience and your thoughts and feelings

about it by writing it down.

writing it slows the mind down. It also stops you going over the same info

all the time.

Step 3: Identify your Unmet Need

You experience painful feelings and anger because there is a need that is

unmet.

To help identify your unmet need, re-read your Letter from Step 2. Look at

the painful feelings you experienced – if you feel ignored, then your unmet

need to be seen or included or recognised

Step 4: Take Action to meet your Need

Decide how you will fill your need, and take small, manageable steps

to do so.

For example, if your unmet need was that you weren’t listened to by a

teacher, what could you do to meet that need?

Step 5: Put yourself in their shoes

Step 6: Forgive

Forgiveness is not about condoning someone else’s actions

Forgiveness is the only way for you to be free of anger

Forgiveness opens up the possibility of reconciliation with the other

person.

Write or tell the other person that they are forgiven

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The 1st stage of anger is automatic

Dilemma

15 minutes

End

Each participant writes down 3 ‘What would you do?’

type dilemmas based on the topic of the training or

an element of it i.e. ‘A customer complains that they

find your manner rude and offensive, what would you

do?’ or ‘You think you can close this sale, but to do

so you need to lie about an element of the product,

what do you do?’

These are placed in a bowl and participants take

turns to pick them out and then write down in a few

brief words what they would do. The other

participants then take it in turns to say what they

think you would do. Any participant that identifies

closely with the real reaction gets a point. The

winner is the participant that gains the most points.

This game is fantastic for exploring the morality of

situations and provoking discussion. It also helps to

link training to the ‘real’ world.

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Each participant is handed pieces of paper

Each paper has the name of other participants

Each participant has to write “ I am glad I met XXX because…….”

The pieces of paper are distributed to the appropriate people & read when they get home

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The

Establishment

and the beginning

of Sales

Negotiating

Strategies

Intermediate

Sales Negotiating

Strategy

Ending Sales

Negotiating

Strategy

Negotiating

Drives

Handling Problem

Negotiations

Handling the

Angry Buyer

3 things you have learnt today

2 things you are not sure about

1 way you can link what you have done today to your work place

44

Wrap up

Write Down

Learn Unlearn Relearn Evaluation

45

Please rate the following aspects of the course

excellent good not good poor

1. Organisation & domestics

2. Content

3. Notes

4. Presentation

5. Overall enjoyment

Other topics of interest

Course Date Name