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We can get in all kinds of trouble talking about politics with customers during this presidential election year. We can also get into all kinds of trouble when we talk with our customers about their relative value to us.

Letting a customer know what their relative worth is to our company, and us, is not a good move.

Scenario 1, Question from one of our small to medium customers: “Gee Scott, are we your biggest, or one of your biggest, customers?” If we tell them they are one of our most valued customers (in order to make them feel more important) we have just given away all kinds of future negotiating power. If we are truthful and tell them that they are mid-pack (or lower) then they could be offended. Remember that many, if not most, of our customers think they are near the top of our customer hill.

The best way to handle this scenario is to answer with something like, “My business is split up by product, industry and geography. For the products you buy in your industry and in this part of my territory you are very important to my company and to me.” There are a million variations on this kind of answer.

Scenario 2, Same question from one of your biggest and most strategic accounts: “Gee Scott, are we your biggest, or one of your biggest, customers?” What we want to do here is to let them know they are very important to us without letting them think we are overly dependent on them, which robs us of negotiating power.

Remember, we are always in a state of negotiation with customers. An answer that could work in this situation might sound something like, “My company and I have a policy that all customers are very important; I hope you know that our unique partnership definitely makes you one of our most important customers.”

It’s surprising, but most of our customers don’t really know where they fit regarding their size and importance to us. Never bring this issue up on your own because it’s almost always a losing proposition for us. If you have a customer who asks this question, be sure to make the customer feel important without showing too many of your cards.

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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.