Margin Negotiation: 3 Common Mistakes You Can Easily Avoid Video Lecture | B2B Sales: Tips and Strategies

Hi, this is Ago.
As a sales trainer, coach, and consultant,
a lot of my work focuses on sales negotiation
strategies, specifically on margin negotiation.
There are three common mistakes that I see
a lot of sellers out there make when they're
faced with some kind of opposition in terms
of a negotiation scenario.
What I want to do is I want to cover those
three.
I want to give you some practical, tangible
tips for you to overcome those and conclude
a successful negotiation that works for everyone.
So the first problem that I see in terms of
a lot of negotiations and how people negotiate
is they give in too soon.
Imagine the following scenario.
You're sitting in front of a buyer and your
buyer says something along the lines of, "Yeah,
that price does sound a little high."
Immediately in your mind, this little mental
dialogue starts going off.
"A little too high, unless we got a different
offer.
It's too high compared to what?
Oh my god, we're too expensive.
We're priced out of the market."
Next thing you know, you're undermining your
own strategy.
A lot of sellers at that point, they will
accept that and they will just say, "Okay,
thank you.
I hear what you're saying.
Let me try and go back and see what I can
do."
Instead, here's what I'd recommend.
Ask questions.
Dig deeper.
Try to find out more.
What does that mean?
Is that an off-the-cuff comment?
Is that based on some kind of an analysis?
Did your buyer consider other options?
Do they have other proposals?
Try to uncover as much information as you
can before you negotiate.
The second margin negotiation mistake I see
a lot is there's too much talking and not
enough listening.
We seem to feel like whenever we're in a negotiation
scenario, it's up to us to defend our position,
and it's really not.
When someone makes a negotiation or makes
every quest in the framework of a negotiation
or in the context of a negotiation, your job
primarily is to find out what's behind that
question, what is behind that need.
In other words, what need are they trying
to fulfill or they're trying to have mapped?
Your job is to find out what it is they seek,
and then consider alternative options to moving
forward.
The third secret I see in terms of margin
negotiation or negotiations in general is
a lot of people walk into the door and they
don't really have a firm, strong BATNA in
place.
They don't have a best alternative to negotiated
agreement.
Let me say that again.
Best alternative to negotiated agreement.
That's what you absolutely positively need
before walking into any type of negotiation.
I don't care if you're negotiating the price
of your new house, a huge business-to-business
deal or the price of, I don't know if you
negotiate it, a coffee in your local coffee
shop.
But if you would, I'd still recommend that
you walk in with a clear, strong BATNA.
Here's why.
If you have an alternative to closing the
deal or to succeeding the negotiation or to
closing the negotiation, you'll feel that
much more confident.
You'll be that much poised.
You'll be able to step back from the situation,
keep yourself from becoming emotionally involved
and be more successful in negotiating a mutually
successful deal.
So there you go.
Three practical, concrete strategies when
you're faced with a margin negotiation scenario
where someone is questioning your margin or
your pricing.
Number one, instead of giving in, instead
of going into that mental dialogue, try to
find out more.
Try to find out what's behind their position,
what's behind their claim.
Number two, do far more listening than you
actually talk.
Ask questions.
Let your buyer give up the information and
see what's behind their strategy.
Number three, make sure whatever negotiation
you're in, and even if you dated for a price
of a cup of coffee, make sure you have a strong
BATNA, best alternative to negotiated agreement.
If you want more B2B sales tips, practical
strategies to help you negotiate better whether
it's margin negotiation or something else,
new, advanced techniques for closing more
deals and more sales, subscribe to my YouTube
channel.
I look forward to seeing you soon.