What is Negotiation?
According to Business Queensland; Negotiation is a process where two or more parties with different needs and goals discuss an issue to find a mutually acceptable solution. Or we could go with this alternative definition that Negotiation is a process between two or more parties each with its own aims seeking to discover common ground and reach an agreement to settle a matter of mutual concern, resolve a conflict and exchange value.
When it comes to Negotiation, we have PRICE, PRESSURE and PERSISTENCE. It has always been the primary engine that enables salespersons to be successful in meeting and surpassing their set targets. It is also an art and just like any art, it needs to be mastered.
Dan Lok is one of the world’s foremost marketing experts and has been dubbed “The King of Closing” because of his immense success as an entrepreneur.
Here are some of the negotiating secrets that made him become a great salesman.
Tip 1# Start With No
This might sound confusing but it is a very valid point. Do not be attached to any deal. Never sound or look desperate when speaking to a client.
Remember, the first impression always matters. From how confident you sound to how elegantly dressed assures the client of your credibility and this gives them the benfit of doubt that you are the right man or woman to go to. Learn to give out a cool facade, wether the deal goes your way or not. This gives the client the feeling that you are offering them the best.
Never think of it as “you losing a deal” but you getting a better opportunity to meet the right client for your business.
Tip 2# Always find the hidden motive
Clients have multiple reasons why they want to purchase a particular product but there is always a primary reason that trumps all. It is your duty to find out what motive pushes the client to inquire about your product. Using real estate as an example; a lot of people have great knowledge of real estate but each person has different reasons why they want to purchase a property. It could be for investment purposes, for rental income, or to settle in. But without knowing these reasons, you would not be able to know the right property to sell to the client, thereby creating an unsatisfying customer experience. Find out if there is great urgency for the product using the doctor-patient approach.
Tip 3# Ask for the moon
Of course, this doesn’t mean the actual moon but it’s telling you that sometimes you have to put your price slightly above the original price because a client will always negotiate. They always want to feel like they have gotten the best offer and this can only be gotten by thoroughly negotiating with you.
Dan Lok mentioned that every product has a discount price, but you should never start with the discount price, or else you lose all chances of getting the needed profit from your business. Starting with a price slightly above the original price allows the client to negotiate down to the original price and it only makes it better when you add the discounted price later on and this makes the client think he/she has successfully gotten the best deal. This is known as a win-win situation, you selling your product at the original price and the client getting his/her product for the best price. But this should never be done out of greed, which is why the added price should be slightly above the original price. Never strive for profit out of greed, this can only bring harm to your business.