Ahead of my FREE Masterclass next week: “The Dirty Secrets Of The World’s Best Negotiators” I wanted to give you a flavor of what I will be sharing:
Negotiation – Dealing With Price Objections And The Closing Stages
Price is an issue in most negotiations. We need to deal with the price issue confidently, but with an understanding of the needs of the other side. Here are some notes to help you.
• Be specific – state the exact price, rather than “…well, it will be about $50,000. “
• Maintain eye contact – it makes you look confident
• Ensure your tone of voice is confident and your body language is also confident and relaxed
• Use silence. Once you have stated your price, stop talking and wait for the other side to speak. Give them time to think
• Deal with price objections and defend your price, but don’t over argue your case
• Close down your body language
• Focus on price and benefit differences
• Begin the bargaining phase
The Closing Stages
The closing stages of any negotiation are vital to the overall success of the final deal.
There will come a time when both parties can sense an outcome is possible and each negotiator needs to be careful not to be too eager to close – or else, the other party will be tempted to hold back for further concessions.
Once a likely outcome is seen, either party may define outstanding issues, compare arguments and objections, review the position to date and agree a deadline for agreement. If one side avoids making these decisions, the other must probe to find out the reason and deal with it effectively. Negotiators must be careful at this stage to identify tactical delay, which deliberately attempts to force further concessions.
The best solution to aim for always is one where both parties feel they have done well, despite having to concede on certain issues. This is called a “win-win” solution.
Once either side feels they have arrived at the final deal, it is important to signal this to the other party.
Body language can say as much about what you are thinking as speech. If you have made your final offer, look as if it is your final offer.
Simply gathering up your papers, looking at the other side directly in the eye and saying “That is my final offer” can do this, and silence can be a powerful tool in convincing them you mean what you say.
Be wary of splitting the difference. If you offer to split the difference, you have, in effect, given the other side a concession that is one-sided. You have said you are prepared to move without asking for commitment in return.
The final consideration is when you have done the deal and both parties are in agreement. Record the details and agree with the other parties involved that your interpretation of events matches theirs. That way there will be no unexpected comeback in the inevitable post-negotiation period when either side reviews how well or badly he has done. Again, this will be minimized if the solution you have arrived at benefits both parties.
A Final Word Of Caution
The closing stages need to be approached with caution. It has been shown that the majority of concessions are given or traded in the last 5% of the time allocated for negotiation. That means if you negotiate for one hour, the last three minutes are when you are most vulnerable.
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