Closing a sales deal isn’t quite easy as many think. Negotiations can drag on for months without any conclusions insight. Moreover, stiff competition can result in unwillingness by parties to close the deal. There’s no denying that answering the questions of your counterpart is the most important skill you could have.
Also Read: Developing a Business Application
As a business consultant, I often come across many questions. Most revolve around a single subject: how to successfully lock a business deal. You’ll be glad to know that there are many ways to negotiate a successful business deal – put your Cox cable service to good use, and access a few good video tutorials. That said, here is how to negotiate a successful business deal:
Discuss the Ground Rules
It is important to know about the issues and ground rules before heading over to the negotiation table. Using a workspace management software during a negotiation process may help creating a professional impression. Many salespersons fail to close the deal because they do not negotiate an explicit process at the start of the deal. How should the talks proceed? What are the issues that need to be discussed? Who will act as the intermediary? These are important questions and you should answer them before finalizing a deal.
Set Realistic Deadlines
Deadlines are crucial to achieving goals. You should never finalize negotiations without settings realistic benchmarks and an achievable deadline. Moreover, discuss what-if scenarios and backup plans in case you miss out on short-term goals and deadlines. Your discussions should also include room for new schedules and improvements.
It is a common concern for negotiators that they might concede to the other party. They also worry that they won’t be able to finalize discussions at all. Remember, the other party is as much concerned about the deadline as you are. Setting realistic deadlines can provide you with room for concessions and creative thinking. However, it is important not to show tardiness or avoidable delays when it comes to deadlines.
Ask for Exclusive but Limited Negotiating Period
This strategy is also referred to as the shut-down move. Simply put, you seek exclusive negotiations for a certain period from the other party. Businesses resort to such a tactic when they anticipate attractive offers from the competition. Inform the other party about your unique and non-monetary advantages. They may include great PR performance or access to lucrative offers. Remember, both parties should agree to something to get concessions.
Stop & Think
Negotiations can drag on for weeks, months, and sometimes years. It is important to approach the negotiating table with a clear head. Take a break if you are stressed out or aren’t satisfied with the talks. Consider postponing negotiations to the following day or week if you feel overwhelmed. Give your brain the rest it needs to relieve itself from the tense atmosphere of business negotiations.
Moreover, connect with your team during the off period and go over the deal. You can even discuss your accomplishments with your superiors. This will boost their confidence in your abilities to finalize the deal. Team talks and business deal reviews can help you identify the pros and cons of the deal. You’ll be able to make an informed decision with a clear head.
Consult a Trusted Mediator
If you are finding no way out of the deadlocks then perhaps it’s time to bring in a trusted mediator. An unbiased third party listens to the views of both sides. The intermediary could tell whether the two of you should proceed with the deal or call it off immediately. This would save all stakeholders time and energy. A neutral third party will call it right down the middle.
Bring in a Replacement for Your Team
If you feel your team is underperforming then you should consider bringing in a replacement. Fresh participants on both sides will look at things from a newer perspective. Chances are you’ll close the deal without anything holding you back.
Add Contingencies In the Contract
Finally, when it’s all set and done you should proceed to sign the papers. However, a good move would be to include contingencies in the contract. They may include penalties and bonuses. For example, if a party fails to meet the deadline it’d be liable to pay certain compensation. In contrast, contractors that meet deadlines should be offered bonuses as a token of appreciation.