Friday, 13 July 2012

The First Rule of Negotiation – never accept the first offer.


“Hang on,” I hear you say. “What if they offer me what I want?” But is it what you want? Is it what they want?

Before you get into the 'make the deal no matter what' mind-set, there are a few things for you to consider before getting the clients signature on the order form. And it's the order form itself that is the problem. Most forms of sales training concentrated on getting to the close and gloss over the importance of the negotiation.

This key point is the difference between being an order-taker and a professional negotiator. An order taker will take the deal in front of him, generally has little scope for negotiation and will not necessarily be rewarded (or thanked) for getting a better deal. Therefore, they will sign up the order and move on to the next customer. And that's fine if that's the environment you're working in. A negotiator will look for the best deal or him or his company.

If you take the first offer, how may you feel and how will that leave your client feeling?

Have you ever been in a situation when your first offer was accepted? How did that make your feel? Did you feel that the seller was too keen to accept your offer? Did you walk away feeling there may have been a better deal to be made? Did you feel cheated?

Any deal feels better for both parties if they have to work at it or have earned it. This is not negotiation for the sake of it (that would be a waste of time.) But its about creating a deal and arriving at a price where both sides believe they've done a good job.

So don't accept the first offer. You owe it to your client.