As this month’s topic is how marketing can help Sales to deliver more deals, I thought I would use a video I’ve seen recently. It looks at negotiating and some key rules around negotiating when dealing with a prospect.
Alan McCarthy’s 10 Rules of Negotiation look at what you should and shouldn’t do.
The 10 Rules of Negotiation
- Don’t negotiate.
- Never negotiate with yourself.
- Never except the first offer.
- Never make the first offer if you can avoid it.
- Listen more and talk less.
- Never give anyone a free gift.
- Watch the salami.
- Avoid the rookie’s regret.
- Avoid the quick deal.
- Never tell anyone what your bottom line is.
When I first listened to this, I wasn’t sure that I agreed with some of them and the rule about salami really confused me when I heard the rule. Once explained, however, it was much clearer.
Watch the Salami
Salami is made from a mix of ingredients in much the same way as the products and services you provide. Back in my old life, when I worked for an IT support company, we often broke down the pricing of a project to minute detail – and we often lost out because of it. People would take the quotes and simply go to someone with a lower day rate. They would use our knowledge and expertise to develop a great server network – and then save money on the overall project. It took us a while to stop, but we did in the end – and then we won more projects. This is still something I need to watch out for and make sure I don’t break marketing projects down into too much costed detail.
Never Give anyone a Free Gift
The old saying says “there’s no such thing as a free lunch” and this is what Alan is saying here. Whatever you give away, make sure you get something in return.
It’s not often I share other people’s content, but this video seemed to fit perfectly within this set of blogs. I hope this helps.