5 Powerful Negotiation Techniques To Win ANY Deal in 2024 ⏐ How to Negotiate Like A Pro

Summary

This video script emphasizes the importance of negotiation in sales, offering five strategies for effective sales conversations. It starts with the necessity of preparing an offer price and a boundary price. It suggests 'being dumb' to gain flexibility, using variables for added value, focusing on partnership over pricing, and addressing customer fears to close deals. The speaker also encourages lifelong learning and provides a link to a 40-minute training for business growth.

Takeaways

• 💼 Effective negotiation is crucial in sales as it determines the outcome of deals and the value you provide to clients.
• 📋 Before entering a negotiation, prepare your Offer Price (OP) and Boundary Price (BP) to have a clear strategy for starting, closing, and walking away.
• 🤔 Embrace the 'dumb' strategy in negotiations by being submissive and asking for the customer's support to close the deal, which can be more effective than appearing overconfident or rigid.
• 📈 Be open to learning and absorbing new skills and information, as this mindset can lead to business growth and opportunities.
• 🔗 Shift the focus from pricing to partnership when there's a marginal difference in offers, emphasizing the value of the relationship over minor pricing discrepancies.
• 🎁 Prepare variables such as bonuses, value-added services, or free shipping to offer during negotiations to increase flexibility and customer satisfaction.
• 🤝 Build the value of the partnership by reaffirming understanding and alignment with the client's needs and values, which can help overcome pricing objections.
• 🏆 Use the 'smart loses money, dumb makes money' principle not just in negotiations but in business in general to stay humble and open to growth.
• 📚 There's an invitation to a 40-minute intensive training for business owners to learn strategies for growth and expansion, emphasizing the importance of continuous learning.
• 🔗 The provided link in the description offers a free training that will expire soon, urging viewers to take action and utilize the learning opportunity.
• 🛒 Address the customer's fear of being sold at a high price or receiving poor value by being transparent and offering reassurance before closing the deal.

Q & A

Why is negotiation a critical skill in business according to the transcript?

Negotiation is a critical skill in business because without effective negotiation abilities, clients may demand more than you should provide and not give you what you deserve, leading to an imbalance in the win-win outcome.

What are the two key prices one should prepare before entering a sales negotiation?

The two key prices are the Offer Price (the initial price you pitch) and the Boundary Price (the lowest price you're willing to accept without compromising the financial viability of the project).

What does the transcript suggest as the second negotiation strategy to protect one's interests?

The second negotiation strategy is to 'be dumb' or act submissive during the negotiation part of the conversation, which increases flexibility and reduces the risk of rejection.

What is the principle behind the 'be dumb' negotiation strategy?

The principle is that 'smart loses money, dumb makes money.' Acting overconfident or 'smart' can reduce flexibility and make one susceptible to rejection, whereas a submissive or 'dumb' approach can lead to more successful negotiations.

How does the transcript define 'variables' in the context of negotiation?

In the context of negotiation, 'variables' refer to additional benefits or offerings, such as bonuses, value-added services, free shipping, extended warranties, or educational tutorials, that can be provided over and above the main product or service.

What is the purpose of preparing variables during a negotiation?

Preparing variables allows for flexibility in negotiations. When the customer is not willing to be flexible on price, you can offer these additional benefits to increase the perceived value and potentially reach an agreement.

What is the significance of shifting focus from pricing to partnership in negotiations?

Shifting focus from pricing to partnership is significant as it emphasizes the long-term value of the relationship over short-term financial gains. This approach can help in closing deals by focusing on the mutual benefits and alignment of values.

What is the 'closing fears' strategy mentioned in the transcript?

The 'closing fears' strategy involves addressing the customer's fear of being sold something at a higher price or of no value. By acknowledging and alleviating these fears, you can build trust and encourage the customer to proceed with the deal.

How does the transcript suggest using the 'partnership over pricing' strategy?

The 'partnership over pricing' strategy suggests that when there is a marginal difference in the proposed prices, the focus should shift to the value of the partnership, highlighting the understanding of the customer's needs and the alignment of values to create a win-win situation.

What is the importance of stating the obvious fears during the negotiation process as per the transcript?

Stating the obvious fears is important as it shows empathy and understanding, which can help to alleviate the customer's concerns. This can lead to a sense of relief and increase the likelihood of closing the deal.

What action does the transcript encourage viewers to take after learning the negotiation strategies?

The transcript encourages viewers to click on the link in the description and watch a 40-minute intensive training video to further enhance their skills and understanding of the negotiation strategies discussed.

Outlines

00:00

💼 Importance of Negotiation Skills in Sales

This paragraph emphasizes the critical nature of negotiation skills in the sales process. It suggests that without effective negotiation, clients may demand more than what is fair, leading to an imbalance in the business relationship. The speaker introduces five powerful negotiation strategies to create win-win outcomes. The first strategy is preparation, specifically determining an offer price (OP) and a boundary price (BP), which are essential for clarity in negotiations. The offer price is the starting point, while the boundary price is the lowest acceptable limit for the deal to be profitable. The paragraph also touches on the importance of being submissive in tone during negotiations to avoid rejection and to maintain flexibility for counter-offers.

05:02

📚 Embracing 'Dumb' Negotiation Strategy and Continuous Learning

The second paragraph delves into the concept of 'being dumb' during negotiations, which essentially means adopting a submissive tone to gain the support of the client and close the deal. The speaker argues that acting smart can lead to inflexibility and potential rejection. Instead, by asking for the client's support and using phrases that convey a need for their assistance, one can successfully navigate negotiations. The paragraph also extends the 'dumb makes money' principle to business in general, encouraging business owners to remain open to learning and growth to avoid missing opportunities. The speaker invites viewers to a 40-minute training session to learn strategies for business growth and expansion.

10:04

🔄 Advanced Negotiation Techniques for Win-Win Deals

This paragraph outlines additional negotiation strategies for creating win-win deals. The third strategy involves preparing variables, such as bonuses or value-added services, to offer during negotiations to increase the perceived value to the customer. The fourth strategy is focusing on partnership over pricing, especially when there is a marginal difference between the offer and the customer's expectation. By shifting the conversation to the value of the partnership, one can emphasize the importance of the relationship over the pricing difference. The fifth strategy is addressing the customer's fear of being sold at a higher price or receiving a product that does not add value. By acknowledging and addressing these fears, the negotiator can provide reassurance and facilitate a smoother closing of the deal.

Keywords

💡Negotiation

Negotiation is the process of discussion between two or more parties to reach an agreement. In the context of the video, it is a critical skill in business, particularly in sales, where it determines the terms of a deal. The video emphasizes the importance of effective negotiation to avoid giving away too much or accepting less than deserved.

💡Offer Price (OP)

Offer Price refers to the initial price proposed by the seller in a sales negotiation. It is the starting point for discussions and is meant to be the price that the seller is willing to accept at the beginning of the negotiation process. The script mentions preparing an Offer Price as the first step in a sales conversation.

💡Boundary Price (BP)

Boundary Price is the minimum price a seller is willing to accept for a product or service. It is the threshold below which the seller will not proceed with the deal as it becomes financially unviable. The script highlights the importance of having a clear Boundary Price to know when to walk away from a negotiation.

💡Dumb

In the video, 'dumb' is used metaphorically to suggest a strategy of appearing less knowledgeable or assertive during negotiations. It implies adopting a submissive tone to gain the support of the customer and to create a sense of partnership rather than confrontation. The speaker uses the phrase 'smart loses money, dumb makes money' to illustrate this concept.

💡Variables

Variables in the context of the video refer to additional offers or benefits that can be adjusted during a negotiation to create a win-win situation. These might include bonuses, value-added services, free shipping, or extended warranties. The script suggests using variables to increase the perceived value of the offer without compromising the seller's price point.

💡Partnership

Partnership is the concept of building a long-term, collaborative relationship with a customer beyond the immediate transaction. The video script advises shifting the focus from price to the value of the partnership when there is a marginal difference in the proposed and expected price, emphasizing the importance of the ongoing relationship.

💡Win-Win Outcome

A win-win outcome is a result of a negotiation where both parties feel they have gained something of value. The video discusses strategies to achieve this by understanding the needs of the customer and offering solutions that meet those needs while also being profitable for the seller.

💡Fear

Fear, in the context of the video, refers to the apprehension a customer might have about being sold a product or service at a higher price or one that does not add value. The script suggests addressing this fear directly by reassuring the customer and providing clarity to help them feel confident in their decision to proceed with the purchase.

💡Closing

Closing is the final stage of a sales process where the deal is confirmed and the transaction is completed. The video emphasizes the importance of addressing any fears or concerns before closing the deal to ensure the customer feels secure and satisfied with their decision.

💡Lifelong Learner

A lifelong learner is someone who continually seeks to acquire new knowledge and skills. The video encourages being a lifelong learner to stay open to new information and skills, which can help in business growth and negotiation. It contrasts this with 'smart' individuals who may be resistant to learning and thus miss opportunities.

Highlights

Negotiation is a critical skill in business for achieving a win-win outcome.

Prepare an Offer Price (OP) and Boundary Price (BP) before entering a sales or negotiation conversation.

Offer Price is the initial price pitched, and Boundary Price is the lowest acceptable price.

Being 'dumb' in negotiations can increase flexibility and prevent rejection.

Adopting a submissive tone can help secure customer support and close deals.

Avoid overconfidence in negotiations as it can lead to missed opportunities.

Being open to learning and absorbing new skills is crucial for business growth.

Prepare variables for negotiation, such as bonuses or value-added services, to create flexibility.

Focus on partnership over pricing when there's a marginal difference in offers.

Reaffirm the value of the partnership and alignment of values to close deals.

Address the customer's fear of being sold at a high price or receiving low-value products.

Closing fears before closing the deal can alleviate customer concerns and facilitate agreement.

Five powerful negotiation strategies are presented for effective sales conversations.

The importance of understanding and utilizing these strategies for business success is emphasized.

A 40-minute intensive training is offered for further learning on business growth strategies.

The training aims to help business owners escape the trap of firefighting and focus on growth.

The training includes strategies and systems to make businesses less dependent on the owner.

The link to the training is time-sensitive and encourages immediate action.

Transcripts

in sales you don't get what you deserve

you get what you negotiate for at the

end of the day if you don't have the

ability to negotiate effectively then

the client will demand and extract way

more from you than you ought to provide

and not give you enough that you ought

to deserve that's why negotiation is a

critical skill in business so let's get

started and understand what are five

powerful negotiation strategies that you

can play with during your sales

conversations which can help you create

a win-win outcome both for the customer

and for

yourself the first most important

negotiation strategy is before even you

walk into a sales conversation or a

negotiation conversation is to prepare

what I call

your

op and BP P before even you go in for a

sales meeting or a negotiation

discussion with a prospect client you

got to prepare your offer price and your

boundary price offer price is the price

that you will pitch at the start of the

sales negotiation conversation and the

boundary price is the price that you

will keep as a range below which you

will not take up the project yourself

because it doesn't make any Financial

sense it is very important in sales for

you to be prepared with these two

numbers before even you walk into a

conversation so that you have Clarity on

where you're going to start and where

are you going to close and where are you

going to walk away if the client is

pushing you below the boundary price

this is a very important element to have

Clarity of in a negotiation conversation

the second negotiation strategy that

does really well for you to protect your

interest and create a win-win deal is to

be

dumb now what do I mean by being dumb

you must be wondering what are you

talking about let me tell you this in a

negotiation conversation please remember

the principle and the principle is this

smart loses money dumb makes money if in

a negotiation conversation you're going

to carry a tone and a posture in the

negotiation section of you being smart

and overconfident then that reduces your

flexibility in the conversation and

makes you susceptible to being rejected

where you can't even make a counter

offer to the customer that's why it's

important to carry a tone which is

submissive only during the negotiation

part of the conversation while pitching

a product or service be confident by

answering the customers questions and

objections be confident but the moment

the sales conversation navigates into

the negotiation area at that time be a

little submissive in your tone and

behave that you you are dumb where you

are not in control and it is up to the

client to support you and assist you to

help you to close the deal this is where

you got to even use phrases in a

conversation to your prospect customer

saying I really need your support to

close the deal I really need your

support to agree to this price so that

it can become a workable project for me

remember if you act over smart here and

you say this is our price take it or

leave it you will end up bruising the

egos of your prospect customers and

they'll say leave it then suddenly you

can't go back and say no no no no I

didn't mean that way we can work out a

middle ground you will sound like a

joker so don't do that so remember the

principle smart loses money dump makes

money negotiation so be dump and ask the

customer for their support to agree to

your pricing and take their help to

close the deal tell them I need your

support I need your help to close this

deal come on say yes and let's finalize

it be dumb it's about a way of being

it's about the tonality you carry in

this section of the conversation it's a

magical negotiation strategy and by the

way this principle of smart loses money

and dumb makes money is applicable not

just in negotiation it's applicable in

business in general so here is my

invitation to you don't be overs smart

be a lifelong learner and be open to

absorbing new skills and new information

think about it business owners who act

over smart are not open to learning are

not open to upgrading their skills and

knowledge and therefore they miss

opportunities of learning and growth

which can help them scale up their

business but the ones who are open and

say I don't know I am open to learning

are the ones who actually gather more

information gather more skills and

capabilities and grow their business so

here's an opportunity I have for you to

grow your skills and grow your business

in the description below we put a link

to a 40-minute intensive training where

I teach how as a business owner you can

come out of the Trap of firefighting and

play the game of growth and expansion

using the strategies and systems that I

teach in this 40-minute training

thousands of business owners have been

able to set up teams and systems in a

manner where the business is not

dependent on them on a daily basis so

make sure you use this opportunity of

learning click on that link it's a free

training and watch that video today

itself because that link expires in a

few days so make sure you take action

remember smart loses money dumb makes

money be open to learning be open to

absorbing and take your business to the

next level which brings me back to the

conversation on negotiation strategies

the third negotiation strategy which can

help you design win-win deals is to

prepare variables negotiation is not

about you being fixated to your price

point and convincing the customer to

agree to your price point that is not

effective negotiation effective

negotiation is where you give something

and they give something and you arrive

at a middle ground which makes both

parties happy now if you want to enhance

the happiness of your customer while

closing a deal also go in prepared with

variables that you're willing to offer

over and above the product or service

that they are buying this could be

bonuses this could be value added

services this could be free shipping

this could be extended warranties this

could be additional education tutorial

or Consulting along with the product or

service something that you can offer for

free over and above your product or

service which they are buying which they

will value and something that will not

pinch your pocket or pinch your effort

too much but will be of use to your

customer it's important to carry and

prepare these variables and go into a

sales or negotiation conversation so

that when the customer is not willing to

be flexible you can always say hey you

know what I can't reduce the price but

here's what I can do I can increase the

value of what what I'm giving you and I

can offer you these benefits when you go

in prepared you then can choose benefits

that will appeal to the customer in that

conversation and make them flexible to

agree to the price point or at least

move towards the price point that you're

pitching to them I find preparing

variables a great way of creating

flexibility in the customer during the

negotiation process so this is a very

effective negotiation strategy the next

negotiation strategy which is extremely

powerful in designing win-win deals is

partnership

overpricing in the negotiation

conversation when you've reached a stage

where there is a marginal difference

between what is your offer and what is

the customer's offer then at that point

of time you need to shift the focus of

the conversation from the pricing to the

partnership what does that mean it means

when there's a marginal difference you

got to take away the customer's

attention from the pricing and say Hey

listen just for a few rupees or a few

thousands of rupees I don't want us to

miss the opportunity of working in a

relationship that has a great Foundation

you got to at this point of time bring

back for the customer how you've

actually understood their requirement

and they've understood that you

understood their requirement how you've

designed a solution in the form of your

product or service which will actually

add value to the customer and how there

is an alignment of values between you

and the client and it's not worth to let

go of this beautiful prospective

partnership just for a little bit of

deviation in pricing when you do that

and you reaffirm to the client why they

should work with you what about you

makes you different from others and how

there is already an alignment between

you and them then you are building the

value of the partnership between you and

them and taking away their attention

from the pricing I have found this to be

a very very powerful way of getting the

customer to stretch a little bit and

value the partnership rather than be

stuck to the pricing which makes it a

very powerful negotiation strategy which

brings me to the fifth negotiation

strategy which is what I call

closing

fears no matter what product or service

you are selling every Prospect customer

has a common fear in their mind and the

fear is am I being sold something at a

higher price and am I being sold

something which is not going to be of

value to me so when it comes to

negotiation and closing the deal at that

point of time it's important to State

the obvious and let the prospect

customer know that hey I understand

sometimes the only thing that is

stopping people to say yes to the

project or the deal is a fear that am I

being sold something at a high price or

am I being sold something which will not

add value to me while I assure you I

will not let any such thing happen to

you I want to know from you is there any

question that I can answer for you or

any clarification that I can provide to

you so you are assured that you are

buying the right product at the right

from the right partner when you just

address the most obvious fear of the

client you see there's automatically a

sense of relief in the client where they

feel assured and they're willing to come

forward and partner with you in the

process of buying your product or

service so close the fears before you

close the deal that makes it a very very

powerful negotiation strategy for you to

get what you want so these are five

extremely practical and Powerful

negotiation strategies like I said at

the beginning of this video play with

them play with them use them in your

sales conversations have fun with them

and see the magic unfold and make sure

you click on the link in the description

below and watch the 40 minute intensive

training right now because that link is

going to expire make sure you take

action based on your learning I will see

you in my next video