The Impact of Business Negotiations on Sales Performance

Negotiation is the most important concept in the business world and a dedicated required skill is a must for those who work in the sales. People frequently misunderstand the concepts of bargaining and negotiation. Bargaining may occur only until the product is purchased, whereas negotiation is a process in which the deal is closed in stages. Some of the sales representatives from larger corporations struggle to deal with customers because they lacked the necessary negotiation skills. As previously stated, it is a process that should be completed in stages.

May be the individual didn’t have a clear picture about it and performing a forceful attempt with the customer. Do you think the customer would be happy or satisfied? Absolutely not! First of all, they need to understand the concept. Then it’s all about investing their time to develop the skills.

Skills Needed For those Who want to Negotiate

Active listening is the skill that helps you understand the customer or client better. Why we need to hurry? We have enough time to get to know them. I think nowadays no one wants to listen and all are in a rush to move further and especially to be a good negotiator the folks should hold their horse, relax and start listening.  

Also, asking the right question matters! There are two types of questions: open-ended and closed-ended. Any person being a part of the negotiation process should ask only open ended questions. The benefit is that the person who listens to the question has no other option but to engage in a conversation, and that is how the fingers get crossed and lead to the closure of the process.

Having all the mentioned skills is extremely good, but at the same time, the ability to communicate with your party is also crucial. There shouldn’t be any lack of communication skills, and this skill definitely impresses them and will pave the way to success. Would you agree with this? Yes, I believe that to an extent.

On the other hand, people may show their anger towards you or their frustration with your offerings, as they probably would have heard from an acquaintance or from your competitors, or however it is. So, it is essential to keep your emotions under control and take the talk ahead in a way the person should be with you for some time.  There are stories wherein the angry person turned out to be a customer in the end.

Have you ever heard of knowing the problem and giving a solution? Yes! The problem-solving skill may easily convert the lead into a customer. Undoubtedly, every customer has a problem, and the people who interact with them have to be in a position to better analyze their problem, acknowledge that they have a problem, and provide them with the best solution that will overcome all their challenges. Eventually, they are your customers and might come again, asking for the same thing. Who know! Keep sharpening your skills to be a great negotiator; use all the skills efficiently so that the customers will be with you for the business dealings. Moreover, this is one of the strategies followed by most of the organization to accelerate the business.

The main forms of Negotiation

Distributive Negotiation, it is also known as win-lose negotiation. In this scenario, both parties need the deal. However, one has to give up to close the deal, as there is no other option. To clarify, any e-commerce firm wants to have comprehensive IT services from an IT firm. But the IT firm is ready to provide the less services for a higher price which the party may not be agree for it. Nevertheless, as the demand is high, they may tie up with the firm and move ahead.

Integrative Negotiation, here there is no much complication between the parties as they will make it through their conversation. It's a win-win situation. Ideally, the conversation didn’t last longer; that’s the specialty of win-win. Let’s take the example of a fashion enterprise and a cosmetic start-up. They agree to partner on a product that works well for their shared target market. As the cosmetic firm is new, they would need exposure in the market while the fashion company looks at financial and marketing goals.

To sum up, whether it is a small or medium or bigger organization the workforce should need the negotiation skill as it aids the businesses to bring collaborations, make huge profit and gaining reasonable market share in the future. This is such an important and serious topic, and the company should look into it and offer adequate training if required for the workforce.