Ed Albertson
Vice President, National Accounts
Carew International, Inc.
Recent neuroscience research has identified the affects of fear upon the human brain. The not-so-surprising verdict is that fear causes a paralysis of many of the necessary interactions within our brains that tend to produce better decisions and results, regardless of what we are attempting to do. The usual interplay between our logic and our emotions is visibly interrupted, as seen on MRI images of human brains dealing with fear. Such findings indicate that the more we prepare for situations that might put our minds in this state of alarm (negotiations), the less likely our response will be thoughtless (price concessions).
“Let us never negotiate out of fear, but let us never fear to negotiate.”
- John F. Kennedy’s Inaugural Address on January 20, 1961
In the current economy, the pricing pressures being felt by sales professionals and organizations alike have heightened our trepidation of negotiating terms with customers. Recognizing that JFK’s Inaugural remarks referred to issues with world-impacting stakes, the similarities for sales people today are no less overwhelming. Inherent in JFK’s admonition to “never negotiate out of fear” is the realization that prior planning can greatly impact our aversion to the negotiating process. Chief among the pre-negotiating planning steps we can take is a better understanding of price concessions and why they occur. Carew International research has identified several key actions to help sales professionals avoid the pitfall of price concessions during negotiations:
• Thoroughly know your customer’s needs
• Identify your/your organization’s desired outcome
• Understand the alternatives
Though some of the methods for avoiding these failures may seem obvious, here are some brief guidelines for removing the fear factor from the negotiating process and creating our own, better Pathway to Negotiations.
Thoroughly understanding your customer’s needs is best addressed early in the sales process by undertaking a skillful, well-planned and in-depth exploration of what your customer’s desired situation would be and where their current gaps are in pursing those outcomes. A thorough understanding of your customer’s needs means asking the right questions of the right people and hearing the right answers before concluding what you believe you have to offer is a “fit” for your customer. When you can match your capabilities to your customer’s needs, the value of your solution is apparent to your customer, thus reducing the need to make concessions. Simply put, concessions are the by-product of unconvinced customers.
“Water seeks its own level,” and planning for negotiations is no different. Failing to know what you really want as an outcome before you enter negotiations predisposes you to unsatisfactory results. The higher you set your own goals and expectations, the higher you’ll reach to attain them. Always begin negotiating from a position that is based upon a personal commitment to achieve the best outcome for yourself, your company, and your customer.
Create a “safety net” for yourself and others by determining what a “second-best” solution, or back-up plan, might look like to each party involved, from each respective point of view. A very fundamental shortcoming of human nature is the preoccupation with our own view of things, to the exclusion of other points of view. Failure to understand the alternatives available to you, your customers and anyone else who has a stake in the outcome, can narrow the opportunity for successful outcomes for all involved.
Paying heed to these steps when planning for negotiations will help you approach such events with much more confidence and much less fear; thereby greatly increasing your rate of success. Indeed, we can exceed the need to concede, and then succeed!
For more in-depth information on negotiations strategies, read Carew International’s Defending the Price white paper or visit Pathways to Negotiations on the Carew International website for detailed program information.
Vice President, National Accounts
Carew International, Inc.
Recent neuroscience research has identified the affects of fear upon the human brain. The not-so-surprising verdict is that fear causes a paralysis of many of the necessary interactions within our brains that tend to produce better decisions and results, regardless of what we are attempting to do. The usual interplay between our logic and our emotions is visibly interrupted, as seen on MRI images of human brains dealing with fear. Such findings indicate that the more we prepare for situations that might put our minds in this state of alarm (negotiations), the less likely our response will be thoughtless (price concessions).
“Let us never negotiate out of fear, but let us never fear to negotiate.”
- John F. Kennedy’s Inaugural Address on January 20, 1961
In the current economy, the pricing pressures being felt by sales professionals and organizations alike have heightened our trepidation of negotiating terms with customers. Recognizing that JFK’s Inaugural remarks referred to issues with world-impacting stakes, the similarities for sales people today are no less overwhelming. Inherent in JFK’s admonition to “never negotiate out of fear” is the realization that prior planning can greatly impact our aversion to the negotiating process. Chief among the pre-negotiating planning steps we can take is a better understanding of price concessions and why they occur. Carew International research has identified several key actions to help sales professionals avoid the pitfall of price concessions during negotiations:
• Thoroughly know your customer’s needs
• Identify your/your organization’s desired outcome
• Understand the alternatives
Though some of the methods for avoiding these failures may seem obvious, here are some brief guidelines for removing the fear factor from the negotiating process and creating our own, better Pathway to Negotiations.
Thoroughly understanding your customer’s needs is best addressed early in the sales process by undertaking a skillful, well-planned and in-depth exploration of what your customer’s desired situation would be and where their current gaps are in pursing those outcomes. A thorough understanding of your customer’s needs means asking the right questions of the right people and hearing the right answers before concluding what you believe you have to offer is a “fit” for your customer. When you can match your capabilities to your customer’s needs, the value of your solution is apparent to your customer, thus reducing the need to make concessions. Simply put, concessions are the by-product of unconvinced customers.
“Water seeks its own level,” and planning for negotiations is no different. Failing to know what you really want as an outcome before you enter negotiations predisposes you to unsatisfactory results. The higher you set your own goals and expectations, the higher you’ll reach to attain them. Always begin negotiating from a position that is based upon a personal commitment to achieve the best outcome for yourself, your company, and your customer.
Create a “safety net” for yourself and others by determining what a “second-best” solution, or back-up plan, might look like to each party involved, from each respective point of view. A very fundamental shortcoming of human nature is the preoccupation with our own view of things, to the exclusion of other points of view. Failure to understand the alternatives available to you, your customers and anyone else who has a stake in the outcome, can narrow the opportunity for successful outcomes for all involved.
Paying heed to these steps when planning for negotiations will help you approach such events with much more confidence and much less fear; thereby greatly increasing your rate of success. Indeed, we can exceed the need to concede, and then succeed!
For more in-depth information on negotiations strategies, read Carew International’s Defending the Price white paper or visit Pathways to Negotiations on the Carew International website for detailed program information.
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