Deal-Closing Negotiation Strategies
Negotiating is a process, and it takes a lot of preparation to make it work. Luckily, there are negotiation techniques that can help you close the deal!
One of the most effective methods is to build rapport with your prospect. Understanding their values, backgrounds and hesitations can help you avoid conflict during negotiations for signing the deal.
Offer a Bogey
In sales negotiation, the bogey tactic can be your best friend. It’s a very effective way to make the other side realize that they’re over-charging you for something you can’t afford.
A bogey is an issue that the negotiator pretends to be very important, though it may not really be. They expect you to make large concessions on other issues in order to get this issue off the table.
This is a tricky negotiation tactic because it can be difficult to detect the other side’s intentions. Nevertheless, it’s important to be aware of the bogey tactic and to be prepared for it.
If you suspect that the other party is using a bogey tactic, it’s helpful to ask questions about why that issue is so important for them. Those questions can help you to reduce its effectiveness.
Flinch
The flinch negotiation tactic is one of the most effective and beloved by many experienced negotiators. It essentially entails a verbal or physical display of shock, disgust, or disbelief in response to an opening offer made by the opposing party.
It is a powerful technique that can help you claim more value without imperiling your relationship with your counterpart. Flinching is also a great way to show that you are not afraid of the situation.
Unlike the previous three negotiation techniques, a flinch does not have to be dishonest. It can be delivered professionally, effectively and sincerely.
Negotiation Strategies – Foot-in-the-Door
The foot-in-the-door technique is a compliance tactic that persuades customers to agree to requests from business owners and salesmen. It’s based on the principle that people are more likely to consent to a bigger request after they’ve accepted a smaller one.
In the case of a salesman, this means that they ask you a small favor that you see no harm in answering, and then they follow up with a larger request later on. This is a great way to get you to buy something that you probably wouldn’t have otherwise! This technique relies on two main principles: Self Perception Theory & Commitment & Consistency.
Negotiation Strategies – Walk Away
One of the most effective negotiation techniques is to walk away when you feel like a deal is going south. You can do this confidently and politely, knowing that if they wish to reconsider their offer you will be there ready to meet their demands.
But this is a tricky move to make because it may come across as a lack of confidence. And this could be just what the other party is trying to avoid.
To be successful with a walkaway approach you need to have an established Best Alternative to a Negotiated Agreement (or BATNA) that you can offer before walking away.
This can be a big hurdle to overcome, but it is essential for the success of your negotiation strategy. And it’s always better to have a strong alternative than to be stuck in a bad deal.