Effective Negotiation

Objective

By the end of the session, participants will be able to

- Define the meaning of Negotiation

- Know the importance of Need Generation through Pre call homework

- Build value proposition for a product

- Illustrate how to negotiate on price

- Develop your BATNA

Like it or not, You are a Negotiator!
Our ability to negotiate has been embedded since we were born.

Remember, When you want to buy toys,

but your mom said ‘NO’

What did u do next?

Cry till you get your toy

 Our lives are filled with Negotiation!

With your Partner With your Boss

With your Workmate With your Business Partner

With your Clients

Are you a Best Negotiator?

Understanding Negotiation..

Negotiation is a technique, a discussion among individuals to

reach to a mutual agreement where everyone gains something
or the other and conflicts are avoided.

Think of a situation where your customer

Share has started to bargain while you were up
your selling/renewing his service.
story
How did you handle it?
Were you able to close the deal? How?
Negotiating with your clients
 Steps to Negotiate

Negotiation

Need Generation 1 2 3 Payment Terms

Identifying needs 1.1 Negotiation on

through Pre Call Value 2.1
Price
Preparation Proposition

1.2 2.2 Understand your

Identifying
needs on Call BATNA
 Generating Customer Needs
You will be able to pitch the You will be confident
right product while negotiating

If customer needs are identified Customer will be satisfied

How to generate needs of a customer?

Pre Call Talking to the

Preparation customer
Pre-Call Preparation
 Preparation is the only Key!
Have you ever wonder how Performance Report of a customer can help in
preparing yourselves in analyzing the needs of a customer !

Let’s see what can you check through this Report?

Count of BL No of Active Buyer Calls – Missed

Enquiry Flow
Consumed days & answered

Overall catalog Seller follow up with Usage of Lead Average talk

Quality buyer via email Manager time
replies and callback
 Enquiries Received v/s Replied
Customer has received 29 enquiries in June, but he has
connected with only 14 buyers via email and call

8 + 6 follow ups

Educate the customer to follow up all the buyers regularly via Email
and calls to increase conversion
 Buyleads Consumed v/s Active days

Customer has consumed 44 BL in 16 days

Educate the customer to

Daily active on platform

Daily follow the buyer
Doing this will increase the chances of conversion
 Top Categories and Location
If you are pitching for a High Value service, then use the data for creating his need as he deals in particular
categories and locations

More BL’s consumed from these categories More BL’s consumed from these locations

As the customer is dealing in multiple cities, create his need for promotion of his
catalog in these locations and suggest these combinations to him
 Buyer Calls – Missed v/s Answered

The average talk time of the 3 answered calls

in July was 1m 29sec

If the talk time is less, probe the customer to If the talk time is more, ask the customer about
find the reason and ask him to pick more calls the conversion and create his need
and respond to the buyer’s requirement
 Talking to the Customer
While doing the pre-call preparation, make a note of the following :

Product Line Count of Enquiries

Seasonal General categories

High Less
category
Dealing in specific
locations Demand for the Demand for the
product is high product is low
Talk to the customer and
check whether your
homework is matching
with his expectations

Need Generation will thus help in creating the ‘Value of the product’
Build Value Proposition
 What come first - Value or Price?

Show the
Need Pitched the Tell the
Value of the
Generation Right Product Product Price
Product

Is there a difference between Price and Value?

Price Value
The amount that a customer spends The benefits that are offered for a product
in buying our product which can generate revenue for the customer

Why will I purchase a product when I don’t find any value in it?
 Creating Value Proposition

If you have identified the needs of the customer,

creating Value Proposition becomes easy

Identify the Describe what Connect

Identify your
benefits that makes these this value to
customer's
your product benefits your customer's
main problem
offers valuable problem
 Creating Value Proposition
The Experience is
One tap and a car comes directly to you the Product
Your driver knows exactly where to go Consistency and easy to use

Payment is completely cashless Accessibility and Settings

The Smartest Way to
Less security breaches
Get Around

Can you create value for your product?

Become a trusted supplier Target Market
TS Creates Brand Image Competitive edge
S6/L6
Catalog Verified supplier Brand Promotion
More Visibility Visibility in chosen market
Negotiation on Payment Terms
 Negotiation Process
Offer Concession Agreement
1 3 5

First proposal made by Increase or Decrease of The final stage of satisfaction and
the account manager price made in the offer closure
(Proposing the deal (Providing (Both the parties are satisfied and
amount) discounts/other options) customer has agreed to pay the
final amount)

Sacrifice made by account

Offer made by the customer
manager or customer
against the account manager 2 4 (Customer agrees to your offer
proposal
or you have given more
(Customer wants discounts)
Counter Offer Compromise discounts)
Price Negotiation
Once you have created the need of the customer and he is satisfied
with your product,
You reveal the prices of that product.

Always offer the MRP

of the product

If customer is looking for some

discounts
Create the urgency
and give some
discount

If customer is still asking for

more discount

Give him more offers,

like part payment etc..
 How you Negotiate makes a Big Difference!

If customer does not agree to what you have offered,

you should always have an Alternate Plan

“BATNA” is advantageous
alternative that you can take if
negotiations fail and an agreement
cannot be made.
 Can you Develop your ‘BATNA’?
Before you reveal your alternative, you should always know
How much amount is your customer willing to pay?

Reveal your Best Discount or the Current Offer of the Month

Use EMI
Offer
Use Daily
Bonus BL
Use 10%
discount
 Can you Develop your ‘BATNA’?

The better your BATNA, the greater your Power!

Show him the worth investing on IndiaMART

Huge Increase Increase in More suppliers are

in Traffic Buyer Demand listed, hence huge
competition

Increase in Buylead More BL’s approved

transactions on IndiaMART
Negotiation is an Art, you have to Own it!
Think & Answer

You often pass your customer’s call to your seniors while you are
already in the negotiation stage with the customer

Are you less confident?

Is your supervisor more efficient in negotiating the price?

Does your superior gives the best deal which you can’t provide?

Does you superior have a Super Power?

What is stopping you to take Ownership of closing the deal

which you have finalized?
 You are Accountable !
If you are passing your customer’s call to your managers,

the rapport which you have created since long, goes for a toss

Your customer will take you for granted

You will loose your customer’s trust

Confidence
• Take
ownership of • Gain trust of • Get more
your your Sales
customer customer
Ownership Productive
 How can you Best Negotiate?

Always create the need of the customer

Do your homework right

Generate value for the product

Learn your customer’s budget and offer a best price

Be ready with your best alternative

Take Ownership and close the deal

 Assessment

https://docs.google.com/forms/d/e/
1FAIpQLSca6Z2JXJY44UPgcOUxeC6SAinNa2arVIxPk-
q_L5N_JnsS8w/viewform

Please take the assessment before closing the session.

“Let us never negotiate out of fear. But
let us never fear to negotiate.”

Thank Yo u !