5 Powerful Negotiation Techniques To Win ANY Deal in 2024 ⏐ How to Negotiate Like A Pro
Summary
TLDRThis 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
💼 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.
📚 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.
🔄 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.
Mindmap
Keywords
💡Negotiation
💡Offer Price (OP)
💡Boundary Price (BP)
💡Dumb
💡Variables
💡Partnership
💡Win-Win Outcome
💡Fear
💡Closing
💡Lifelong Learner
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
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