Welcome. If you like what you see, you can automatically receive these free semi-weekly posts by email or RSS feed. See the right side of the screen for instructions; it only takes 10 seconds. You will receive a verification email if you choose to receive by email. If you don't immediately receive this email, please check your spam folder. We will never sell or misuse your email address.

I was recently asked, “What is the most important strategy when negotiating with customers and prospects?” A number of ideas jumped up, but there was a clear winner.

Before we go on I have to remind everyone that we are always negotiating with customers. You even have to negotiate with customers that you’ve been selling for years. No matter how good the relationship may be, the customer is always assessing their ROI (Return on Investment) in doing business with you and your company. The customer has to get more from you, at least from their perspective, than they give. They will also, if they are smart, want to respect the fact that you and your company must also benefit from the relationship. You, on the other hand, constantly have to ensure that the customer feels that doing business with you is in their best interest while simultaneously taking care that you and your employer financially profit from this customer. This back and forth is negotiation. You give and get; they give and get. If done properly and in balance, everyone wins.

So what is the most important strategy? If you’ve been in sales for any length of time you know that it’s the rule that states, “Don’t be the first one to talk.” What does that mean? It means that when directly negotiating with a customer let them make their demands first. By doing this you will frequently find that the customer’s needs are less demanding than you thought. They are asking for less than what you would be willing to give in the negotiation. Be warned that many savvy customers know this tactic and it can be quite entertaining to watch a buyer and seller stall as they wait for the other to be the first to make their needs known.

There are a number of things to keep in mind when negotiating with customers and prospects. This one has passed the test of time and is a foundational strategy.

Tags: negotiation

We'd like to hear your feedback on this post - feel free to comment below!