Nogotiation Blog

Insights on Business and Sales Negotiation

Join us for insights on how to negotiate a winning balance, where where both sides understand and appreciate the value they receive. As a result, you are more likely to forge a long-lasting relationship that yields more and better opportunities in the future. This idea underpins K&R Negotiations’ Win Wisely™ approach and underlines the importance of using leverage wisely.

Leadership in Negotiation: Selecting Your Negotiation Team and Rules of Engagement

Leadership in negotiations is critical. The leader is responsible for setting expectations and parameters for your side in regards to pricing, strategy, deadlines, process management and more. Failing to define this opens the door to many potential deal-ending difficulties, and is likely to erode your position on the way to closing. There are many moving parts, not least of which is negotiation team selection. Who you choose to have on your side of the table—and more importantly, how they perform while they are there—is going to have a strong bearing on your chances of arriving at a favorable outcome. This consideration goes beyond picking those directly involved. You may need key technical or financial expertise in the wings to build your value case at critical junctures. We know that…

License Compliance and the Value of All Terms in Negotiations

Terms in negotiations cost money; someone pays the tab (bill): This is one of the six foundational principles of K&R Negotiations’ Win Wisely™ method. Every term in contracts and negotiations should be of some value, and each term has an associated cost. As a negotiator, knowing the rationale for a term enables you to articulate the value and identify its cost. The value of the total deal is the aggregate impact of all the terms. If you don’t understand the rationale behind the terms, not only is your credibility impacted, but so is your leverage. The following story illustrates this principle in action. Gene, a sales rep for a technology solution provider, is trying to sell support services for a client’s e-services distribution infrastructure. The client is a multimedia lifestyle…

Negotiation Blocking Techniques

In one sense, negotiations are a strategic exchange of ideas and information. But the value of what information we give (and when) can have a very real bearing on our success. As you seek leverage in the deal, you are trying to find key information from the other side. If you’re negotiating with seasoned professionals, you can expect them to do the same with you. Sometimes difficult questions arise that, when answered, could erode your position. For example, if you have few or no real alternatives to doing an important deal, revealing that fact to the other side can cost you dearly. That’s why experienced negotiators have a handful of practiced blocking techniques they use when they feel a certain question must be deflected. As always, consider your purpose, audience and personal style…

Chief Procurement Officer Study: Implications for Sales Negotiators

The IBM Institute for Business Value recently released a new thought leadership study (Chief Procurement Officer Study: Improving competitive advantage through procurement excellence) Sellers who regularly deal with chief procurement officers (CPOs) or that CPO’s staff should read it. The paper’s creators surveyed 1,128 CPOs from organizations with annual revenues in excess of $1 billion to understand how procurement has evolved at top-performing companies. The cost-cutting measures following the 2008 economic crisis increased the influence of many CPOs. In 2013, it is clear that top-performing CPOs have evolved beyond traditional procurement cost-reduction practices. They not only toe the bottom line, but are highly innovative, leveraging collaboration and their connections to the…

Negotiator Training Works: ROI for Global Training and Negotiating Firm

Client teams that walk out of our negotiating seminars come out with actionable tools they can immediately apply to shorten sales cycles; close bigger, better deals; and build lucrative, long-term relationships with the opportunity for more recurring business. It's one thing to make the claim, quite another when a client's own analysis supports that claim. K&R Negotiations engaged with a global training and consulting firm for complete negotiation training aimed at closing more business for their services, based on the K&R Win Wisely methodology. They were quite pleased (and so were we!) with what they found: The client's closing ratio was 35% prior to negotiator training, with a targeted goal of 50%. After training, closing ratio increased to 73%. The client's goal for margin…

The Best Way to Manage Mistakes at the Business Negotiation Table

Imagine that you are in a sales negotiation. As part of your services, you will create a solution for an inventory problem that your customer is having. In the middle of the negotiation, a member of your team tells you that this solution can only be implemented manually, which will drive up the cost $250,000. What do you do? Omit the solution in the next agreement draft and hope the other side forgets the whole thing. Tell the other side that you’ve made a mistake, but you will absorb the cost of the additional $250,000 since it was your mistake. Immediately notify the other side, apologize for this mistake, and tell them that if the solution is still of value to them, $250,000 will have to be added to the price. Say nothing and eat the additional $250,000. Keep silent. Add…

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Creating Value-Based Leverage

In this short video, learn why negotiation is really the art of finding agreement.

Mladen Kresic introduces the concept of value-based negotiations leverage and why it is a powerful tool for moving conversations to an agreement.

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