The Art of Win-Win in Sales Negotiations

Most sales negotiation problems are not actually negotiating problems. They are sales-process problems that start when a salesperson meets a prospect. Why does this happen, and what can you do about it?

One reason is that many salespeople don’t take the time to lay out a clear agenda from the beginning — what we at Sandler call an upfront contract — and then don’t ask enough of the right questions to understand the prospect's pain clearly. When that happens, everything the salesperson offers as a fix will seem expensive, and the prospect may invest more time into haggling for the best deal, rather than working with the seller to find the best solution. This could look like asking for concessions and price cuts to close the deal. This might initially be a win for the client, but a loss for the salesperson. In the long term, it will probably be a loss for both parties because the customer might not actually get what they need, or the concessions might not be sustainable over time, leading to frustration, lost business and a renewed effort to solve the original problem.

Another reason a negotiation can fail is that the salesperson focuses solely on price and budget without taking a deep dive into the prospect's pain, as we mentioned above. Because closing the sale is the priority, they focus on securing an agreeable price over understanding the client’s underlying issues. As a result, they might remove critical components from their offering that could provide a more effective, albeit more expensive, solution. This could potentially be a win for the salesperson but a loss for the client, who finds that their primary needs and problems still are unresolved. Consequently, the client may feel frustrated and believe the salesperson did not fully consider their best interests. This dissatisfaction can result in lost business and a bad reputation for the seller, forcing the client to reinvest time and resources in finding a better solution to address their original problem.

So how do you create a win-win scenario for all parties? To start, go into all sales conversations prepared for a negotiation, even if you don’t think you will need to. Make sure that you take the time to understand your buyer’s needs, budget and pain points before you start proposing solutions. Naturally, you must also know your product or service inside out. As a seller, you always need to be able to communicate the unique value and benefits of your product or service and highlight how it addresses the buyer’s specific needs and why it stands out from the competition. You also need to plan for where there is an opportunity for you to make the right concessions without devaluing your offering if the prospect wants to negotiate. In other words, know what you can be flexible with if your buyer asks for your “best deal” and what you would like to receive in return from them to give it. Maybe that is a larger order, a longer contract term, exclusivity, a testimonial, or a referral to a potential new client. Make sure you are getting something in return whenever you are giving something.

Another win-win scenario is when a salesperson holds firm on what they are offering because they know that they have the right solution at a fair price. Maybe they have offered concessions or maybe not, but what they have is conviction of the value they will bring based upon experience. Sometimes prospects will try to negotiate just to see if they can get the salesperson to bend. It’s not that they don’t want the solution or can’t afford it – they just want that little extra edge. It can take time and practice, but a good sales negotiator will understand when the sale has reached the mutually beneficial point and will not back down just to tip the scale in favor of one party.

Negotiation is a critical skill in the sales process and mastering it can lead to mutually beneficial outcomes for both the seller and the buyer. The key factors are preparation, clear communication, flexibility and a collaborative mindset. By focusing on these elements, both sellers and buyers can navigate the negotiation process effectively, leading to successful and mutually beneficial outcomes. For sales leaders and business owners, cultivating these skills within your teams can drive better results and foster stronger client relationships.

Previously seen on I95 Business Magazine.