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The 5 Biggest Mistakes Salespeople Make When Negotiating
Keith Weightman
October 01, 2022
The 5 Biggest Mistakes Salespeople Make When Negotiating
This week, I’m going to talk through 5 of the biggest mistakes most salespeople make when negotiating.
Negotiation is a high ROI skill and the best salespeople are great negotiators.
The issue is that most salespeople lack the fundamentals which in turn causes them to feel like they were punched in the face by the end of a negotiation.
To make matters worse, they're so caught up in "getting the deal done" they don't realize the impact their "discounts" are having on both quota attainment and earning potential.
Today, you’ll learn:
The 5 biggest mistakes salespeople make when negotiating
Actionable ideas to avoid making them
Mistake #1 - Who & How?
Before you even get to any type of negotiation, you first need to understand how they buy.
If you don’t… your deal is at risk.
Ask the question:
“When was the last time you went through a process like this? And can you walk me through the steps on your end and who’s typically involved?”
Really dig in to understand the process, players, and how decisions are made so you can strategize, set expectations (internally & externally), and properly qualify/forecast your opps.
This one’s too easy but overlooked way too often.
Mistake #2 You’re Not #1
It’s common to have a rep come and ask for approval to discount a deal.
My first response is:
“Are we competing or are we negotiating?”
If we’re still competing, we shouldn’t be negotiating.
If we’re negotiating, that means we're VOC (vendor of choice), the client wants us to win and they’re just trying to get the best deal by asking for a discount.
Now, just because you’re #1 and they asked - doesn’t mean you should immediately agree to a discount.
If you do, it’s possible you’re also making mistake #3 as well.
Mistake #3 Not Knowing Your Value
If you can’t articulate the problems or pain you solve that tie to an executive priority and quantify the financial impact of your solution, prepare to get pummeled by your buyer.
Knowing the value you provide allows you to be confident in your proposal and focus on the financial benefits and away from features.
One way to do this?
Go check out The ROI Shop or talk w/ Keith Campagna Michael Farber
They’ve developed a web-based, client-facing ROI tool that makes it easy to never make this mistake again. 😎
Mistake #4 Give Without Getting
First, you must realize, that negotiation is a process, not an event.
From your very first call, you’re negotiating.
Whether it’s for more time, agreeing to a mutual action plan, access to others, information, etc., etc.
Make it a habit to NOT give away something without asking for something in return - no matter how small it may seem.
If you don’t, you’re conditioning your buyer to walk all over you.
A simple way to do this is to create a give/get list (sample here) of the common “gives” and “gets” that happen during your sales cycle. (Rank them from easiest to hardest)
You’ll be more prepared and have a list of potential trade-offs to help find common ground.
Mistake #5 One at a time
Reps often make the mistake of negotiating 1 concession at a time.
Every time you do this, without knowing the whole picture, your conditioning your buyer to continue asking for more.
That’s why it’s best to go through ALL of the requests and concerns first.
Take notes and let them know you want to look at their “ask” wholistically vs. piecemeal.
It’s also ok (preferred if you’re a newer rep) to let the buyer know you’ll need to think through some ideas and get back to them.
Until this becomes 2nd nature (which comes with repetition), it’s best to work with a manager, senior rep, etc. to brainstorm options.
What’s been done before?
What are our different levers? Sample list to get you started
How do we typically handle these types of asks?
At the end of the day, the buyer wants to feel like they’re getting the best deal, so find a win-win solution for both sides.
That’s all for this week. Hope you pulled a nugget or two and thanks for reading.
Be Brief, Be Gone Version
Understand the who and how decisions get made
Make sure you’re #1 before negotiating
Know the financial impact of your solution
Better prepare by having a give/get list
Get the whole picture first