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.

A "Happy" view of value

"Admiral produces boringly good numbers" is a headline from the fall Times Online (UK).  At K&R, we often write about the linkage between value and negotiation success (or sales success).  Well-done value arguments are compelling.  They result in shorter selling cycles and in more revenue and profit.  Poorly done ones lead to longer sell cycles and discounted prices.  Perhaps the most common value argument error we see is that people stop short of linking their value argument to a business result that the buyer cares about.  Something like "My product will make you more efficient."  It isn't enough.  We know that to be effective, "efficiency" has to be followed to its logical business-outcome endpoint.  In a simple way, Admiral gives us a clue for creating better value chains. To…

Saving your way to prosperity

Times are tough.  The stock market is at 1997 levels.  Unemployment is high.  Sales are down.  You need to manage your business results for 2009.  What do you do, and why? If we were playing the television game show "Family Feud" (or Family Fortune, if you're in London), the number one answer is...  Stop spending! How about it?  Can you save your way to prosperity?  While careful spending is always a good practice independent of the economic conditions, will it make you or your company successful?  Probably not. Let's look at the economics of earnings.  The big number isn't the cost line.  Well, the big number shouldn't be the cost line - too many people are losing money at the moment.  The real leverage to improve your business results is in the revenue / profit line.…

Value, Benefit, and Cost in Negotiations

In a K&R Negotiation Skills Training Workshop toward the end of last year, one of our clients brought in this formula... Value = Benefit - Cost Not perfect, but persuasive in many ways.  Let's discuss a couple of critical pieces of it. The first negotiating mistake we see related to this is that "value" is one of the most misused words in technology sales.  A maddeningly high percentage of the time, it is used by Sellers as a substitute for "price".  An example: "This deal provides you with $250,000 worth of software value for only $167,000."  This sort of presentation reminds me of the magazine subscription solicitations I get in the mail. "Photographing Travelling Automobiles, a $360 value, for only $14.95 for one year."  I do not believe there is anyone left in the world…

A Buyer's look at 2009 Opportunities

There are no original-but-excessive descriptions left for the present condition of the world markets and growth projections.  Insert one that resonates with you here... We agree with it completely. K&R had an interesting discussion about what the 2009 recession means with a significant buyer of technology hardware, software and services.  The company provides services to their own clients, and in the course of providing those services they deal with over 1000 vendors and spend over $100 million with those vendors each and every year. We wondered what the implications of the year would be to their vendor management. Many sellers will see extreme versions of historic buyer behavior in the coming year.  Many Buyers will choose based on price, and look for the absolute lowest pricing. …

K&R Success Stories Published

K&R Negotiation Associates has published a few representative success stories on the K&R Web Site.  Here are excerpts and links to more information: K&R's client turned a $150K annual loss into a $50K annual profit, while at the same time raising their own client's satisfaction with the service. (more) K&R's client realized 6.7M€ of revenue in their current fiscal year, and 60.2M€ additional revenue within two years. (more) K&R's client benefited between $13.5K and $250K. The ultimate buyer saw a clear ROI from the total $837K investment in our Client's products. Both our client and our client's client were rewarded through the application of K&R negotiation principles. (more) K&R's client did not offer expensive guarantees and rebates…

A Negotiator's Resolutions for the New Year

With the pressure of year-end closing behind us, it is time to look forward.  This is no time to rest on our laurels - unless we want to go through another insane end of year, hoping that the customer will have pity on us and sign, even if they are not convinced.  To that end, as good negotiators, repeat after me... I resolve to do my preparation early in 2009, and as a result, have a terrific year. To that end, I resolve: To persuade my buyers by describing the value of my solution - in their business terms, not mine, using references and proofs of concept as needed. To articulate that value to each decision maker or key influencer for the agreement. The articulation will be customized and relevant to the role of the customer person I am speaking with, and I will get confirmation…

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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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