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I N A B T O B C O N T E X T
G H I S L A I N E P E L L A T
PREPARATION OF NEGOTIATION AND
ACHIEVEMENT (PERFORMANCE?)
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G R E N O B L E U N I V E R S I T Y . F R A N C E
"It is not the employer who pays wages - he only
handles the money”,but customer at least
Henry Ford, american industrial businessman (1863-1947) , Ford T
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Requires To have a sound knowledge
of markets.
Get enough informations on the company’s website
where you are employed as a commercial person (
(atmosphere and updated informations), products
and added value’s products for clients.
Get informations on the direct competitors of your
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Get informations on the direct competitors of your
company (prices, arguements, words which are used,
sentences etc…
Get informations on the indirect competitors of your
products and understand the customers
requirements how they buy this value proposal
Assessment on the potential selling for the company.
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Product
Is the product belonging to a range of products or an
isolated product ?
Technical features vs benefits for clients
I.E : some shoes for climbing are made without
kniting…benefits : frictionless on the feet, completely
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kniting…benefits : frictionless on the feet, completely
waterproof shoes.
If customer got product before, how to substitute a
product for another one ? (or add another product to
the range)
Have a look to the blogs of users of the product
concerned.
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Facilities to negotiate (tools)
• Are the prices subject to change in this case of negotiation ?
(negotiating portofolio)
• Price for client : without value added taxes (wVAT)
• Recommended and maximum resale price (VAT)
• The amount to be paid, (VAT)
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• The amount to be paid, (VAT)
• Cost of the transaction (wVAT)
• Discounts, Rebates, Reduction in prices, kickbacks : which
conditions of application ? What is the deal in terms of
trading ?
• Reduction per range or per deal ?
• Free product in addition ? About services? (value
assessment)
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Reductions policy vs Return on Investment
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Couts fixes
Couts production : CV
Quantité
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Facilities..
Payment terms : cash payment, 30 days net or at the
end of the month, 60 days or a mix of the both.
Delivery of the goods : who pays for the delivery ?
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One product : Delivery paid by customer,
10 products :Shared
50 products : delivery borned by the vendor
Rate of deliveries ?
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1st STEP : PREPARATION
Preparation is a factor of success or failure.
Be highly aware of the situation and the partner’s goals.
Prepare a strategy : which could change (evolve) during
the negotiation, (flexible paths)
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the negotiation, (flexible paths)
Motivate and mobilize the team around the need of
client, to offer innovative solutions
Ensure the profitability of the deal for the company.
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DRIVE A NEGOTIATION PROCESS
Negotiation is not a scene of fighting between partners
Challenge in a constructive and fair exchange
constructive.
Fairness: objectives facts, quantitative documented
informations, verifiables facts, in order to avoid the
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informations, verifiables facts, in order to avoid the
changes of mood.
Constructive dialogue: is the opposite of overriding
partners, but to build a lasting relationship with the
other and a profitable deal for a long time for each
other. Each of the partners will keep the feeling that
he/her won the deal.
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ATTITUDE TO NEGOTIATE
William Ury et Roger Fisher, 2 main american authors from
Harvard University, published « Getting to yes » 1981
Draw the attention on the manage in an objective and
fair manner (just),
To focuse on the issue of the negotiation and not on
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To focuse on the issue of the negotiation and not on
emotion or stratagems.
Today, most of customers get informations on the web
and the deal for negotiations today are :
1. Get a « win win » issue 2. Becoming more clever at
the issue of the exchange.
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ApproachApproach
The development of rapport with the customerThe development of rapport with the customer
The chance to make a good first impressionThe chance to make a good first impression
The salesperson should adapt to the potentialThe salesperson should adapt to the potential
customer’s social stylecustomer’s social style
APPROACH in action
First name LAST NAME
Company
(Function)
Via...the first impressionVia...the first impression
http://www.youtube.com/watch?feature=endscreen
&v=W56A2uKi-II&NR
Appropriate dress
Smile
FIVE MINUTES TO REALIZE THE SALE
YES
Needs IdentificationNeeds Identification
Requires asking probing questions of the
prospective customer to determine needsprospective customer to determine needs
The salesperson should ask open-ended
questions
Make sure that the customer’s needs and
potential concerns are addressed
DETECTING NEEDS in action
NOT TO BE OMITTED
Open questions
How do you imagine your holidays?
Closed questions
Would a seaside hotel suit you?
Alternative questions
Would you like a hotel on the seaside or off the coast?
Synthesis
If I've understood correctly, you..........
YES
PresentationPresentation
The focus of the sales presentation is the
salesperson’s explanation of how the featuressalesperson’s explanation of how the features
of the product provide “benefits”
Presentation may be flexible or memorized
The salesperson should be prepared to
provide documentation for any statements of
fact that are made
PRESENTATION, DEMONSTRATION in
action
Construction
Characteristics Advantages Benefits
In front of the customer
Positive reinforcement of the need (translated into a benefit)
Presentation of the advantagePresentation of the advantage
Checking of acceptance
Proof
Is not essential
Ask the customer what interest he/she has in the proof
Check the impact of the proof
YES
Handling ObjectionsHandling Objections
The salesperson may have failed to provide
adequate information, or have not
demonstrated how the product meets thedemonstrated how the product meets the
needs of the prospect
Objection as a sign of interest on the part of
the prospect
Provide information that will ensure the
prospect’s confidence in making the purchase
HANDLING OBJECTIONS in action
Don't panic!
Ask questions (open or closed Qs)
Find the right argument
Identify purchasing signalsIdentify purchasing signals
YES
http://www.youtube.com/watch?v=Qt3Xx6ZrnqI&f
eature=relmfu
Handling objections to close
CLOSING in action
Identify the right time
Reformulate the accepted advantages
Conclude
........
Then STOP!
http://www.youtube.com/watch?v=9hv91SewiBs&fe
ature=related
Best language to use to close a sale
Down with salespeople who talk too much!
Gaining CommitmentGaining Commitment
Commitment is gained when the prospectCommitment is gained when the prospect
agrees to take the action sought by the
salesperson
The salesperson must ask for commitment
FollowFollow-- UpUp
The salesperson complete any agreed upon
actionsactions
The salesperson should stay in touch after the
sale by writing thank-you notes, clipping and
mailing newspaper articles of interest to the
prospect and calling on the customer to ensure
the customer’s satisfaction
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AFTER THE SALE…
Look forward the short-term and then long-term
futures of this cooperation
Are these agrements profitable in a long-term
perspective ?
What are the customer’s aims to achieve ?
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What are the customer’s aims to achieve ?
Which products or services would be offer in the
future ?
Who are the community leaders ?
Any recommandations to get contact with the
network ?
Selection of similar customers : selection (CRM)
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To summarize
Major importance is to set targets for selling
Importance to control the granted concessions
during the negotiation
Importance to get a strong supply policy against
competitors
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competitors
Importantce not to loose any loyal customer, and
gain new clients.
Importance to be well organized (professionaly
organized).
Thank you for your attention !
I look forward to answering your questions
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Ghislaine Pellat
Grenoble University France
Mobile : 0033 6 08246727
Email : ghislaine.pellat@iut2.upmf-grenoble.fr
Negotiation. Ghislaine PellatPréparer une
négociation. Ghislaine Pellat