An Apple store salesman speaks with a customer. In successful
negotiations, the seller and buyer come out feeling that value was
derived. AFP PHOTO | ANP | EVERT ELZINGA
By John Kageche
In Summary
- Learning to negotiate is part of the stock-in-trade for the salesperson.
- Selling is an emotional exercise camouflaged in logic.
- Value is only valued if the valuer values it. Highly valuing your own value is the beginning of successfully handling negotiations.
- Negotiations must aim for both the seller and buyer coming out feeling that value was derived.
The other day I could not get a head massage at my
barber’s because the masseuse wasn’t in. So I asked for the refund
equivalent. I laughed at his witty response: “to compensate, next time
you’ll get a longer massage.” And just like that he had retained the
sale in full.
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The issue here is not about denying customers a refund they
genuinely deserve. That is plain good customer service and should be
exalted. What I’m talking about is acquiescing to a price reduction,
terrified of negotiating, all for fear of losing a sale.
Experienced buyers are known to force concessions
with every aspect of the transaction. A two per cent off here and a 3.5
per cent off there may look small but cumulatively will considerably
change the package.
Learning to negotiate therefore becomes part of the
stock-in-trade for the salesperson —like my barber promising me a
longer massage.
I read somewhere that price is what you pay, but
value is what you get. And value is a perception. When a prospect is
asking for a price reduction he most probably does not perceive its
value. This is one reason why prospects negotiate.
The salesperson is not to be dragged down with the price but to rise up to the occasion and demonstrate the value equivalent.
How? Selling is an emotional exercise camouflaged
in logic. And emotion cannot be grasped—just like perception. But
emotion (an experience) can be regenerated, and in that instant, vividly
relieved. Like my getting tickled every time I think about the “longer
massage”, or suddenly feeling deeply saddened when one remembers the
loss of a loved one a decade ago.
In practice therefore, if the prospect wants to buy
a new computer and you establish from him that it’s because the one he
has is slow, don’t stop at slow —that’s logic and relative. Instead, let
him describe his latest computer nightmare.
As he relives the frustration (emotion) every time
his computer drags (or crashes) you will vividly see the pain on his
face and hear it in his voice. He now appreciates value and his need to
negotiate the price that will take away this pain.
Salesman
Negotiations also happen because it is in our
culture. Dukawallas (shopkeepers) pre-empt negotiations (bargaining) by
stating, “The price of the tire is Sh10,000 but I give you discount, so
you pay only Sh8,500”; or, the stall owner, “bei ni ya kuongea (price is negotiable).”
This knowledge should energise the salesperson to approach negotiating from a point of strength, not fear.
Yet another reason to be confident in negotiations
is because prospects smell insecurity in the salesperson. And because
Sunday school moments are rare in the field, like a predator smelling
the prey’s fear, prospect’s circle in and lunge for the jugular.
Value is only valued if the valuer values it.
Highly valuing your own value is the beginning of successfully handling
negotiations. It also enables you have the strength to do the ultimate
in negotiations—walk way because your lower threshold has been breached.
Admittedly, there are instances where the
salesperson stoops to conquer— like accepting an alteration in the
package today, which is obviously hindering more profitable business
tomorrow. And that is fine because it is also a form of negotiation.
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