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.
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…
Will it close this year?
As we approach the final days of 2008, you are probably working on a number of transactions with the hope of exceeding your sales quota or target. If you are counting on a year-end close, we are offering two questions and a tip for your consideration. These can shape your actions over the next couple of weeks, and affect your revenue and profit.
The questions:
1. What happens to the buyer if they don't sign before year-end? If your answer is that they won't get this good a deal in January, you are dealing in pretty weak leverage. The persuasion that is missing from this argument is business value. Buyers know that an offer made once can often be made (or closely approached) again. If they don't have a business reason to act now - a reward that accrues or a risk that they take…
Thoughts about selling in the current economy
Here are a few ideas and thoughts from some of the collective experience of our associates, in addition to some suggestions from articles we have read over the past few months about selling and negotiating in the current difficult economic environment.
In many of the articles, there are three common themes:
It is important to maintain a positive attitude - focus on where you can have impact - not on the overall economy. Remember the old expression: Attitude will determine your altitude.
Execute the basics - diligently. Vince Lombardy turned the Green Bay Packers into a successful American football club with his relentless focus on the basic skills of the game.
Work harder (depending on the article - it will take anywhere from 25% to DOUBLE the effort to accomplish the same results.)…
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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.
