Trade Negotiation: Practical Guide to Trade Negotiation on btob
Trade negotiation, definition
Business negotiation takes place when the parties do not directly reach a common agreement. It is therefore a dialogue that deals with everyone's expectations, fears, limitations and interests. Through various negotiation techniques , negotiators sometimes reach an agreement. Otherwise, the negotiation does not lead to any collaboration.
trade negotiation
There are 2 types of business negotiations:
Cooperative negotiation. Based on mutual interest, it can elevate both parties and serve their interests.
Competitive negotiation. As the name suggests, each side is in opposition and neither is willing to give in.
What are good business negotiation practices?
1. Prepare for your appointment
Preparation is an important step, because it is partly decisive for the future. In business negotiations, nothing is left to chance and it is absolutely necessary to think ahead about the most relevant strategies.
To carry out the negotiation phase, ask yourself what the company's objectives, expectations and needs are. Try to identify any obstacles that may prevent the contract from being signed.
The preparation phase allows B2B salespeople to be more efficient and feel more comfortable during interviews. Indeed, they know which points to address, which pain points to insist on and which solutions to propose. In other words, salespeople become real negotiators, who conclude deals where everyone wins!
It is therefore a matter of collecting relevant data about your interlocutor and the status of their company.
2. Make a good impression
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This is all about making a good impression on your client when making contact or arranging an appointment. Of course, this does not directly help you in your business negotiations, but making a good impression helps to win the sympathy of your interlocutor. He is then more inclined to listen to your arguments and consider them.
To make a good impression, take care of your appearance, be punctual and warm. In fact, arriving on time and wearing a nice suit is not everything! In reality, your attitude is much more important and it is this that determines the rest of your exchanges!
trade negotiation
Generally speaking, talking to a smiling and serene person is more appreciated than to someone cold and closed. So, put all the chances on your side from the start!
3. Quickly identify your interlocutor's objectives
The preparation phase allows you to understand what your client's objective is that motivates him to buy your product. Usually, during the contact and then during the interview, this information is confirmed.
In business negotiations you should always consider the needs of your target. It is not about putting pressure on them, but rather about both parties finding a compromise that serves this objective.
You can't excel at negotiation if you don't know all of your customers' buying motivations! So be careful, because some are often implicit!
trade negotiation
To identify them, practicing active listening is an effective technique. It consists of rephrasing certain phrases from your client to show them that you understand their objections. Asking open-ended questions is also a good idea. Don't hesitate to delve deeper into a topic by asking a question.
For example, your client tells you that they are interested in your training, but they are worried that this service is too complex for their team. Then ask them, “Would it be worth it if I personally committed to accompanying you on your training journeys?”
If the answer is yes, it means that the fear evoked is well-founded. If the answer is no, it is likely that there is a fear, an implicit blockage. Find out more by asking, for example, “What could make you change cambodia whatsapp number data your mind?” In other words, you are asking if you are looking forward to a particular service or offer.
Finally, he confesses that he wants to invest more in software than in training, because he believes the ROI is more advantageous. He is still interested, but needs to talk to his manager about it, as his plan is changing.
4. Anticipate objections
Negotiation is a stage of sales based on dialogue. Both parties disagree and try to defend their point of view to serve their respective objectives. It is about giving the right arguments at the right time and finding an agreement halfway between the interests of the sellers and those of the customers.
Precisely, anticipating the blocking points allows you to know which sales techniques and explanations are the most effective. The goal, of course, is to not be taken by surprise and to propose solutions adapted to each objection.
5. Keep control of your emotions
In business negotiations where everyone is expressing their disagreements, tension can quickly creep into the conversation… One word that irritates, one expression taken out of context, and it's anger that takes over. However, if you lose control and express your emotions, the contract is lost!