How to make concessions in negotiation during a sales process

How to make concessions in negotiation is a presentation given by Michel Rozenberg, Executive & Strategic Consultant at Progress Consulting Belgium in Brussels.

To handle successfully commercial negotiations, he recommends you to follow from the discovery stage to the sale closure ‘the PCCC Process‘, which stands for:

• Prepare,
• Consult,
• Confront,
• Concretise.

Let me go through each stage for you.

1. Prepare

You need to prepare your negotiation on 3 levels: technically (product features, the anticipation of questions), mentally (stress, tactics…), and understand the context (what is it about? What are the meeting objectives?).

2. Consult

This is the stage, where you meet people, establish a rapport, and discover facts.

We call it the ‘sales discovery stage’. It is a time when you must arouse interest in teasing your conversation partner.

However, you shouldn’t develop too much. At this point, you need to capture your interlocutor’s attention by asking strategic questions to discover your potential client’s needs. You become a customer advisor during this discovery/commercial diagnostic phase.

You need to ask open questions such as: Why? Where? How? When? How much/many?

You must stick to relevant questions about:

• Your prospect context
• The streamlined decision-making processes
• How are decisions taken
• Why you are meeting the prospect
• Why they need to alter their situation
• What they have tried before that didn’t work out for them
• How do they see things in the future
• What they would like to get.

3. Confront

You need to start:

• Making and exchanging opening offers
• Making concessions and offer compensations.

This is the ‘trailer’ effect, where you sell the benefits/the final result, by excessively simplifying your products and services. It is a specialised reasoning.

4. Concretise

You make additional offers and concessions until you and your potential client reach an objective. Basically, you sell to your conversation partner the final benefit by going from the generic to the specific. You explain to the conversation partner how your solution in their context compared to the situation you mention, will help them reach their objectives.

Then you either:

• Find an agreement. This decision-making process will be speeded up according to the behavioural customer profiling (Salesforce and communication team). At this stage, you must secure a commitment and a reminder date.
• Find an agreement about a disagreement.

At each of these stages, you should make to engage your client, validate each point, build rapport, and sum up their needs. This is a sales collaboration.

Then, he recommends you to follow a process, i.e. concession patterns as shown below, which I’m going to detail further for you.

Pattern 1: Define your concessions and foresee room for maneuver

Pattern 2: Make them late, then later and later

You need to know your mandate in the selling process as well as show that you don’t give easily cheap deals, by taking your time to make negotiations, once one has been given. Get people to wait.

Pattern 3: Make them smaller and smaller, increase precision

That means give smaller and smaller concessions. You can do comma figures (e.g 1.5 instead of a round figure).

Pattern 4: If possible, make them on cheap topics

They could be concessions that cost less at the start of the negotiating process. For example, it could be a concession on payment terms, not on the product/service price.

Hint: make a list before the meeting, a list of topics.

Pattern 5: Don’t give more than necessary

For example, you could give a specific discount, not more.

Question of threshold:

• At the consultation/confrontation stages: identify this threshold by asking questions in order to get the relevant information.
• Minimum threshold versus maximum threshold. In your career, you may be happy to get a     10 % salary increase but won’t necessarily be happier if you get 20-25 % than if you only got a 10 % threshold.

Pattern 6: Almost always ask for  compensation

• Make concessions deserved
• If you are hard to give concessions, they will not try as much to get further concessions.

Pattern 7: Make them conditional and temporary

They shouldn’t be part of your Terms and Conditions. You could strengthen the urgency or scarcity notion, which should be adapted to the client and product. This will motivate the client to conclude the purchase more quickly and require more effort from them.

Pattern 8: Foresee a small last one at the end

This concession should be given very late in the process.

You could grant a very small one (cheap deal) but it will give a big impact. You should only give it if necessary if it will help close the deal/get the signature or find an agreement.

Pattern 9: Don’t disclose your deadlines

If you do disclose them, it will give your potential client power over you that could be used as manipulation.  This will give the conversation partner a competitive advantage and give them excuses to put pressure on you to close the deal. Do as if the end of the quarter isn’t important to you.

Finally, when possible, try to split concessions into several pieces. That will give them the impression they will gain something several times. It will have a bigger impact, even if the end value is the same. Remember, people are still hunters.

 

 

 

 

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Entrepreneurship Web Summit for Women: Conference Summaries

These short series of entrepreneurship web summit for women were brought to you by Morgane FEVRIER, business mentor and personal development coach for women entrepreneurs.

This French entrepreneurship web summit for women took place in March 2020 over 10 days with 3 web conferences each day. Please note there was and is no replay option for these. Consequently,  I will only share with you the ones I have attended.

The conferences address 3 essential and complimentary themes; namely business, well-being, family and relationships.

In this blog post, there are summaries of 4 conferences from the entrepreneurship web summit for women.

1. How to authorise yourself not to be pigeonholed by society

Sabine ZAHNER is the first  speaker from the web entrepreneurship web summit for women. She is a freelance photographer, a Chi Nei Tsang  therapist and personal development coach.

She gives you tips to find out what motivates you and what projects you should go for.

To figure out these, you need to start asking yourself :

What works for me ? Does it work for me?

In other terms, she advises you not to accept every single client proposals, but instead follow your gut feelings and your values. Connect yourself with your body and emotions. If your body and emotions feel it’s not the right timing, project, it is best to let it go. If you have difficulties doing this, reconnect and touch your body and learn to breath. You can also go for belly massage to help your digestive system when you feel under pressure.

She believes you should take decisions based on how enthusiastic  you are about a specific project. For example, if you have zero interest in the final products or feel the client isn’t paying you enough, it is worth to turn down the request. This way, you free up time for a new client, for which you may get more interesting projects.

Don’t under-estimate either networking and connecting with potential clients. Sometimes, this can happen over an informal meeting. Take a little step and make a small choice daily to keep you motivated.

2. How to confront your fears to create your ideal life

Aileen VALERE GILLE is from Belgium. She worked for 5 years as a career adviser and 12 years as charity business manager (HR, budget, recruitment).  Then, she trained in kinesiology and various coaching and holistic methods.

She gives you few tips on how to confront your fears. She advises you to try out kinesiology and group psychotherapy, in order to manage your insecurity feelings.  For that, you need to ask yourself these questions:

a) where do these fears come from? You need to try and understand them

b) what are the other thoughts to have?

Similarly to Sabine, she places the importance in your intuition into your business and life. To do so, you need to pay attention how your body is responding to various events. She feels you should give yourself small challenges without beating you up either.

 You need to loosen yourself up by taking a light approach towards life. She also recommend you to switch business only if you have enough funds to quit your normal daily job. She, herself, took a while to go full-time entrepreneur. Initially, she worked full-time, then part-time, until she felt ready to quit her daily job to go full-time freelance.

3. How to use your quarter century life crisis to think finally about what you really want 

Mylène MARVIN worked in Human Resources and has followed and tested coach trainings. She is now a life coach and therapist specialised in career and life transition, who helps her clients to manage better their emotions and know themselves better.

She believes you need to overcome the idea that a permanent contract is a secure employment. However, she thinks that security does help you to question yourself about your achievements.

Similarly to Aileen, she thinks you shouldn’t quit your job too quickly and take time to think about your project. Instead, you should look into temporary entrepreneurship relief (ie unemployment benefits paid out for a year). Some companies also offer mutually agreed termination of contract, in other terms, a kind of unpaid leave for ‘business creation’. If your company does not offer such option, then you will need to keep working and saving money for your start-up.

She has launched a Youtube channel called ‚quarter century life crisis’, in which she views this crisis time as an opportunity to specialise yourself, follow your path and avoid repressing your emotions.  It is a point in your life where you can ask yourself : ‘what do I want ? Why am I here ?’

It is a good time to dare doing a useful job, beng authentic and following a small step that will make sense to you.

When it comes to your business, it is important not to view everyone as competitors, but instead exchange with your competitor.s and help each other out, even you have the same job and target.  Indeed, working in partnership (2 people) can be rewarding, when it comes to, for example, organising a big event. It lightens the workload and makes you feel less isolated.

4. How to find and maintain a good work/ life balance

Marie-Agnès JAMBARD is an energy psychotherapist and reflexologist.

She has had multiple freelance jobs such as beautician, salesperson, old age and disabled people carer before she launched her business in energy therapy and reflexology.

In this visioconference, she is giving us tips to lead a successful and balanced personal and professional life.  She feels we should focus on 3 points helping us to find a balance :

a) Assess yourself

Where am I in my professional life? Do I feel nourished? Do I feel fulfilled? This is a start where I question myself.

b) Identify difficulties I encounter in each of these areas (professsional/personal).

Welcome these difficulties, do not avoid them. Nothing is fixed, you need to reassess yourself regularly. Avoid putting yourself last and do not limit yourself.

If you have issues in all areas, start with the personal ones. Every starts from yourself and the need to be aligned, in agreement with oneself.

You need to start getting to know yourself by knowing your needs and expressing them. Everything that we live outside starts by oneself. Assess what suits you and do not cut spontaneity. Find what livens you up.

c) Confront and reconnect with yourself.

Listen to the life intelligence which carries you. Listen to it and trust it. Connect yourself to your intuition. Let it go of the classical conditioning. Allow yourself to be ‘you’ and show the example. Get out of the beaten tracks by forgetting limiting beliefs and old ways of functioning.