Nogotiation Blog

Insights on 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.

Negotiation Examples: How Avoiding Unprincipled Concessions Kept the Customer’s Respect (And Won More Revenue)

  When competition starts putting the pressure on you, it’s natural to look at price-cutting as the primary way to keep the business. But in the long run, this is a mistaken impulse, unless accompanied by a sound business rationale such as a reduction in scope, change in terms or outcome from the deal. One of our engagements with a client that served a European industrial (the customer) with technology solutions definitely illustrated the value of avoiding such “unprincipled concessions!” Unprincipled concessions are “giveaways” not tied to a credible business rationale. Our research shows that this simple business negotiation mistake costs companies between 9 and 18% of gross revenue and significant profit. (See our infographic on the topic for a more detailed discussion…

Breaking the Master/Servant Sales Relationship

There is a world of difference between being a vendor that takes orders and being a valued peer or co-strategist. The former defaults to a defensive or reactive position, missing opportunities to help their client, increase the value of an account and build a more durable, mutually profitable relationship. Moving from the master/servant paradigm isn’t about gaining the upper hand in a brute power scenario, but rather about moving to a peer-to-peer relationship where mutual benefit flows from mutual respect and acknowledgment of exchanged value. From our experience, the master/servant trap is an easy one to fall into, even with some of the world’s top-tier service organizations. After all, if the customer orders, the vendor sells and delivers. There are organizational factors that…

Negotiation Examples: The Power of Agenda Management

The “time factor” — how you manage it against other considerations and use the high-level (or macro) agenda to help create agreement has a huge impact on your success! This was certainly the case during an engagement with one of our technology clients, whose customer was in the European auto segment. All of our client’s revenue with this automaker was in jeopardy when the automaker announced that a purchasing freeze would be in effect at the beginning of the coming year, due to deteriorating economic conditions and new IT management. Since it was October, these developments required immediate action and a clear agenda that would culminate in closure before end of year. In our view, too much is made of “agenda control.” It’s nice to control the agenda, but both sides in a…

How Sales and Negotiation Skills Training Can Fail the Front Line

I recently noticed and greatly enjoyed Dave Stein’s LinkedIn Pulse post, “If I Have to Sit Through One More B.S. Sales Training Class...” Dave discusses the major pet peeves of a sales “heavy hitter” who bristles at the thought of sitting through sales training meetings conducted by people who have never sold, don’t know sales’ specific challenges or how to have sales people leave the session with clear steps that will help them sell more. Stein identifies a number of root causes for why sales leaders bring in the wrong training at the wrong time. If you have ever had a hand in sales training procurement at your organization, I highly recommend reading the post to see if you are walking into any of the pitfalls that Stein illuminates. As an organization that delivers sales…

Best Practices: Territory Business Management

Recently our friend and colleague, Jim Hale, published a blog on territory management and the art/discipline of applying multiple resources and time to effectively generate sustainable sales. In the end, winning Territory Action Planning (TAP™) results in increased customer satisfaction and relationships, higher win rates and overall better revenue and profit results. Because this is such an important subject, we reprise some of the best practices associated with TAP in this blog. High performing sales teams manage territories like they are individual businesses to build strong sales pipelines, advance their sales opportunities and grow relationships with selected accounts. They have realized through experience that the sales territory is the superset of our sales assets, and that without…

Communication Credibility: Without It, There’s No Persuasion or Negotiation Leverage

Show us a successful negotiator and we’ll show you someone who is highly conscious about how they communicate with others. It’s not about who can talk the fastest or prove that they know more than everybody else in the room—it’s about building credibility. This is crucial because credibility ultimately translates into leverage for getting the right deal done. There are lots of ways to damage your credibility by communicating irresponsibly: Addressing other people in terms of stereotypes rather than unique individuals. An example is treating an IT leader in the room like a geek who only cares about technology and assuming they won’t care about the strategic business value of your solution. Being dismissive of other people’s contributions, even if you immediately disagree…

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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