Stage View |
Demand Generation
Prospect
Qualify
Develop
Solution
Proof
Close
Deploy
Support
Develop final c...
Develop negotia...
Finalize contra...
Confirm verifia...
Key Step:
| Developing Negotiating and Give/Get Worksheets
Rationale:
| A key to successful negotiations is preparation. In addition to increasing the probability of closing an opportunity, wise negotiation tactics lead to agreements that meet the legitimate interests of both sides, resulting in smart deals for Microsoft and increased customer satisfaction.
| Guidance:
1. Developing Give/Gets Worksheet Before entering into negotiations, it is extremely helpful to prioritize what you need to achieve from the negotiation “gives” versus what you can afford to bargain away with the “gives.” The Give-Get Worksheet is a simple tool for structuring your priorities and comparing them to your estimates of your customers. Use the following link for a template of the worksheet. Give-Get Worksheet Template 2. Understanding Negotiation Styles Understanding and adapting to your customer’s negotiation style is another key to negotiating success. The Negotiation Agreements Guide was prepared by one of Microsoft’s top negotiators to help you improve your understanding of negotiating styles and negotiations best practice. 3. Three Golden Principles of Negotiations Have a Strong Business Value Proposition/Cost Justification – When negotiating, a strong cost justification helps. A strong cost justification should result in the buyer believing he will make money with the purchase. Buyers will spend money when they see they can make money. Consider the Buyer’s Emotional Hurdle – Most buyers’ biggest emotional hurdle is, “Am I getting the best deal?” Consequently, most buyers will take a deal away from the seller at least once to test that they are getting the best deal. Be Mindful of the Seller’s Emotional Hurdle – The emotional hurdle for the opportunity team is withstanding strong pressure from the buyer. The team must convince the buyer that he is getting the best deal by having the fortitude to walk away from a buyer who is not willing to move. 4. Key Negotiating Tactics Prepare for negotiations! Ask questions and listen before you propose anything Answer the questions asked – avoid the temptation to elaborate unnecessarily Trying to see the situation as the other side sees it Know the other options that are available to the buyer Give VERY reluctantly and slowly Try to achieve a mutual win when negotiating Know your fall back positions in order of least cost to you 5. Understanding the mind of the professional buyer (what buyers have been taught) The seller is never the sole source for solution Know your position in advance Assign an internal sponsor to each competing seller Never let a seller know they are winning Never let a seller know they are loosing Price negotiate in reverse preference order (leave the leading contender until last) Be skeptical of a seller’s deadlines
Samples & Templates:
Documents for this Key Step include: |
| Give-Get Worksheet Template |  |
Links:
| Negotiating Examples - Provides •responses to customer questions/statements •and negotiation tips Negotiation Agreements Guide - A helpful overview of negotiating styles and best practice