By Kevin Graham
Kevin Graham is an author, speaker and expert on sales and leadership. He serves as managing director of Empowered Sales Training, a consulting and training company in California.
Good negotiating skills are critical for any professional. Whether you deem yourself aggressive by nature or not, there are proven methods to ensure you don't get smoked like a sausage when orchestrating your next deal. Awareness to common tactics is important! Let's consider the Flinch, the Nibble, the Call Girl Principle and Quid Pro Quo prior to highlighting a theme every professional should use in their client interactions.
The Flinch
The Flinch is fairly basic stuff but many people don't realize that it should be both a verbal and physical expression. It doesn't have to be over the top and dramatic as even a slight nudge and sigh can suffice. But anytime someone states a price or a term, you should demonstrate both a verbal and physical shock to their statement. Again, you don't have to fall out of your chair but you should never hear a price or term (especially the first time) without expressing a flinch.
The Nibble
The Nibble is what you get after the deal is done. Let's say that your prospect has expressed (or implied) that the deal is going forward. Stop selling. You've got to know not to sell past close.
Continuing to persuade your prospect after they've indicated their intent to go forward brings unnecessary risk. But that's not what the nibble is all about. The nibble is what begins to happen once both sides have indicated they want to go forward with the transaction. The heavy lifting is complete and things are partnered to move forward. Yet, many times that is when the real negotiation begins.
Let me give you a real world example: Let's say you're about to land a new job. You've managed to survive several interviews, reference and backgrounds checks and the big honcho enjoyed your casual lunch together. You're back in the office with the hiring manager (likely your new boss) and you're confident the compensation package will land within your acceptable range. This is the perfect time to take a nibble or two.
"Mr. Hiring Manager, of course I'm going to need an expense account to ensure I develop strong relations at XYZ." Or, if relocation is in the works: "Mr. Hiring Manager, you know that I'll need a couple months of temporary housing in order for my wife to complete the transition, right?" These are both significant points of the negotiation but executed as nibbles they are much easier for the other party to swallow. Timing is critical so be prepared to withhold some of your requirements until you see the deal has been closed.
Once a deal has been made, that's often when the real negotiations begin. So be prepared to nibble! And just as importantly, be prepared for the other party to start nibbling, too.
The Call Girl Principle
Let's talk about the Call Girl Principle. I hope you don't find this offensive as I'm not condoning elicit behavior, but there are sales lessons to be taken from the working-girl profession. The Call Girl Principle simply stated: the value of a service rendered diminishes rapidly once the service has been performed. That's right. Your customer may need that proposal today and it's very important to him; but, once you provide the proposal it's a lot less important to him, isn't it? He may be willing to agree to some things ahead of receiving whatever he needs, but once he receives it—well, let's just say that he may not see as much value in it.
Your customer may say that they'd 'love you to death' if you could make it happen, but isn't it funny how that love you to death turns to simple gratitude once you've delivered your service. Yes, with most things in life the value of a service rendered diminishes rapidly once the service has been performed. That's where Quid Pro Quo comes to play.
Quid Pro Quo
Anytime you give something up in the sales process, you should be getting something in return. If for no other reason than it builds value in what you're giving up.
If your customer asks for a 20 percent reduction in price or anything else, be sure to get something in return—a testimonial, a reference call with a future prospect, something—anything. Again, it builds value in what you're giving up. Imagine the counter to this; say your customer asks for a 20 percent price reduction and you simply say 'yes.'
What's the customer's perception? Most likely, he's thinking he should have asked for a bigger reduction. But when you get something in return, the customer feels good about getting his 20 percent reduction because he knows it's important to you. And along the lines of the Call Girl Principle, be sure to get agreement PRIOR to giving it up.
Win/Win Negotiations
Many professionals tremble in fear when they consider negotiating, yet every interaction is a give and take of some sort. Recognizing basic tactics can prepare you to get the most from your client engagements. The best approach in any negotiation is Win/Win Negotiation. Win/Win Negotiation is based on the premise that both sides can benefit by truly understanding the other side's needs.
If you approach your next negotiation by seeking to understand the other side's needs, you'll likely discover that you can deliver for them without giving up the things that are sacred to your side. Also, by giving high regard to their needs and desires you are developing an atmosphere of trust and cooperation. As both sides become more comfortable in working together, momentum begins to build toward a common goal; thus, Win/Win Negotiation. Both sides begin to seek out alternatives that serve each other's needs as well as their own.
Emotions play an important part in any decision. We are all human beings and it is important that we feel good about our outcomes. If I trust that you're seeking solutions that serve my needs, I'll tend to be more considerate of your needs. Most transactions don't need to be a zero sum game whereby one party loses every time another party gains.
With creative thinking and innovative approaches, many times both parties can have their needs fully satisfied. And the prospects of a positive, long-term, mutually beneficial relationship dramatically increase.
The next time you set out to get a deal done, consider basic tactics to ensure you're not leaving money on the table. By recognizing the timing of the flinch or the nibble you'll be able to leverage the dialogue toward an improved position; and by understanding that the other party probably has a negotiations tool belt as well, you'll be armed to protect yourself against negotiation fundamentals.
As you recognize the purpose of Quid Pro Quo and the reality of the Call Girl Principle (the value of a service rendered really does diminish rapidly once the service has been performed), you'll discover the other party appreciating the value of your offerings, as well as the value of your concessions.
After you close your next deal, ask yourself what was left on the table. In any transaction, there was more to be had. Perhaps you agreed too quickly or didn't nibble once the customer gave an indication of going forward with the deal. Maybe you kept selling past close. In any one deal, there could be a dozen or more things you could have done differently that would have brought you more value in the transaction. By placing some immediate 20/20 hindsight on the process, you'll quickly learn how to maximize every engagement.
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