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.
The FCC and Harvard Medical School
A short time ago, we wrote about news of a study done by the Harvard Medical School concerning the value of computerization in US hospitals. A Computerworld article led with the headline: “Computers don’t save hospitals money”. The article stated that in spite of promises to the contrary, IT improvements in hospitals do not improve care, and they don’t improve costs. Now the FCC has gotten into the act, saying that broadband access will improve health care and save money. Do you believe Harvard, or the FCC?
First, as a negotiator, why do you care? In short, it’s about credibility. If you sell products, services, or ideas your credibility is directly tied to your success. So if Harvard Medical School and the FCC disagree, it’s a credibility battle of titans. When…
K&R's Value Selling Poll
If you voted in our recent poll about selling with value, thanks! Here are some thoughts about what our respondents said. First, if you know us, you already know that we find that a strong value argument improves your leverage position, and enables you to ask (and get) a higher price for your product or service. That said, you also know that sometimes you can’t differentiate your value, and as a result you will sell as a commodity - price will be the main selection factor. What successful sellers do is this:
Understand the value of their offering to their client in client terms
Understand what (if any) differentiation exists between their offering and the client’s competitive alternatives
Act accordingly: knowing their position on the K&R Leverage Slope™
So when…
The Trouble with Value
A recent Computerworld article covered a study done by the Harvard Medical School about the value of computerization in US hospitals. The article led with the headline: “Computers don’t save hospitals money”. This is not good news if you’re a seller of Information Technology solutions.
First tip: Be prepared1. You can expect to hear about this, certainly if you are selling in the health industry, but generally if you are selling the value of Information Technology to people who either have trouble believing in the value of IT, or for whom it is disadvantageous to admit it (for example, buyers in procurement roles). The article will be used in attempts to undermine your value arguments, and thereby reduce your prices.
For those of you who regularly read our articles, or are…
Negotiation Anosognosia
Wikipedia says, “Anosognosia is a condition in which a person who suffers disability seems unaware of or denies the existence of his or her disability. This may include unawareness of quite dramatic impairments, such as blindness or paralysis.”
The description could be applied to a negotiator who fails to recognize what everyone else can see – their product or service has value to the buyer. In a recent account planning and negotiation review, a sales team came to us and basically said, “Our proposal for the customer provides $500,000,000 (yes, $500 million) worth of our product for $100,000. They haven’t signed yet. What should we do?”
This team was Anosognosiastic (if such a word exists). They failed to see what many others could, including the K&R reviewers. …
Principled Concession™ Poll – K&R’s Answers
Our thanks to those of you who voted in our latest poll, “Which of the following is a Principled Concession™?” For those who need some reading on the definition, see our article here or the full list of our articles about this topic here. Without further delay, our answers:
“Why don’t we split the difference?” As of the date of this posting, no one chose this answer. That’s good, because this is not principled. “Split the difference” can be characterized as a way to make both parties equally unhappy. Since neither has a good reason for the split, each is likely to go away thinking they could have (or should have) gotten more. The technique often works because it appeals to our sense of fairness.
“You can have 5% off if you buy today.” 5% of our voters picked…
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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.
