Win the sale, not the negotiation
Your client has come to market for a new vendor to run a swathe of their technology landscape.
It is a competitive process against 5 other vendors.
Establishing your Sales strategy from the outset has to be clear:
Of course, to be relevant as a partner of choice you need to be seen to be very client centric. However, if being client centric is the extent of your strategy you face disappointment. The other vendors are also attempting to be client centric, so you are at this time perhaps simply classified as a me-too player.
Winning a sales campaign is also about beating the other guys! You will need to understand how to compete to win, to be distinctive and not just hope that the judges prefer you in the beauty pageant. A strong appreciation of the Ambient Influence Group (Click here for previous post) will allow you to engage where you have to, in order to garner the support you need.
Having competed and, you now face the negotiation.
Establishing your Negotiation Strategy has to be clear:
Here your strategy could be to Win - but if that is the extent of your strategy you face disappointment. Probably not today, or tomorrow, but if the client feels they "lost" at the table, they will find the means to recover that ground - and then some.
It is essential that both parties at the table believe that they have the best deal they could achieve together as nobody wants to feel "had".
The technique of identifying the Zone of Possible Agreement (ZOPA) is now frequently taught in the classroom to lead business negotiators. Effectively you can determine where on the scale of value your current deal sits, and this helps you and your client explore ways to create more value.
Look at this simple ZOPA diagram...
The logic flows that Party A (you) could agree to a position that is expressed as Y+50 as it does not dilute its position, yet adds value to Party B (your client) - and Vice Versa. Having established this as a principle, the challenge is always ensuring you and your client can actually understand where value is measured. Here I offer the ZOPA in a different format that can be populated with whatever deal terms are appropriate.
Your client is happy to offer improved payment terms based upon use of ESCROW and drawdown, as it does not dilute their case. They want a fixed rate card with predefined and limiting COLA provisions. Likewise they are happy to make a long-term commitment to you if they have the corresponding break clauses they desire. Tactically both parties can quickly identify those commercial legal clauses that impact value versus those that are general point scoring. Many will cancel each other out, but this technique will uncover the value as perceived by both parties.
As just one of a handful of essential tools and techniques available, the ZOPA proves value in just about every sales and negotiation situation.
As a coach I strongly believe the imperative is to sell to the client, compete against the competition, negotiate in a principled manner, be genuine in your arguments, seek to expose hidden value, and never ever negotiate with yourself - you will lose.