Best practice sales negotiators take advantage of the negotiation process as an opportunity to place greater distance between themselves and the competition by earning a greater level of trust and appreciation from the buyer. Companies that are weak at negotiating typically have at least one of these early warning signs:
- Treated Like a Vendor: If your customers consistently treat you like a vendor and make you compete for the business, you are not being treated (and most likely not behaving) like a trusted business partner.
- Unclear Value Proposition: If clients are constantly challenging the value you provide, do something about it. Your value proposition needs to resonate with your target clients and be backed by client success stories to be believable.
- Too Many Concessions Too Soon: If you consistently make concessions (e.g. price, timing, scope) without receiving anything substantial in return, you need to beef-up your sales negotiation skills to keep from “losing your shirt.”
- Not Knowing When to Walk Away from a Bad Deal: If you do whatever it takes to win, regardless of client demands, you are setting the stage for trouble. Know your ideal client and the value you deliver. Walk away from a bad fit.
- Eroding profit margins: If you consistently miss your profit targets (or are trending in that direction), your negotiation practices are a great place to investigate.
If you are beginning to notice one of these warning signs, take notice. Your clients and your margins are most likely at risk.
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