Learning how to negotiate to increase sales and profits is an essential skill set in a competitive marketplace. Discussing price before you’ve estab­lished the value of your product great­ly reduces the options available to create a win/win agreement. Talking price up-front usually results in a “single curren­cy negotiation.” These negotiations are generally not in your best interest because the only thing to nego­tiate is price. The options you face in this situation is either meeting the price de­mand or losing the sale. Neither is an ideal outcome. Although customers may apply “price pressure” during any sale there are strategies and tactics you can take that can help you make sales without dropping your price.

Here are some key negotiation tactics that you should use before you cut your price. Using these tactics can help you negotiate more effectively and sell at a higher price.

DO’s

• When you meet sales resistance, try selling benefits before you negotiate.
• Plan your negotiation.
• Know what you want and what you need.
• Set your aim high.
• Know the other party.
• Establish a positive climate for negotiating.
• Identify all the issues before you begin to bargain.
• Maximize the value of each concession you give.
• Break complex negotiations down into pieces, and solve each piece one at a time.
• When you lack power, structure the negotiation around facts, figures and hard numbers.

DON’Ts

• Be the first to concede on a major issue.
• Make unilateral concessions.
• Get caught in a price only negotiation.
• Bow to pressure.
• Be afraid to say “no”.
• Offer to split the difference.
• Rush the process – how you negotiate is as important as what you negotiate.
• Be put off by the word “no”.
• Negotiate with anyone who has less authority to make concessions than you do.
• Negotiate at times when you desperately depend on a favorable outcome.

There are no simple short cuts or magic bullets for dealing with price pressure. By learning how to negotiate to increase sales and profits you can greatly enhance your chances of not only getting the sale but at the price you want.

Remember, if your sales situations require an ongoing relationship with your customers use the negotiating tactics described with care. As with any sales tactics, you must establish and maintain rapport during the sale. Doing so helps you be assertive when necessary without threatening the relationship.

Use these tactics as part of your sales strategies to increase sales, profits and customer loyalty.

For more information on negotiating to go to http://davidbunney.com/

Phil Faris is a business development consultant, coach, speaker and author. He is president of Phil Faris Associates a firm that specializes in helping organizations hire, train, develop, lead and retain the sales talent required to succeed in a competitive marketplace. Phil has developed a reputation as a “performance improvement doctor” for his ability to help organizations improve their financial health by diagnosing performance issues and then prescribing strategies that produce measurable results.