Negotiating In The Retail Store

Helpful negotiation tactics for retail salespeople:

● Stay cool. If a customer asks for a lower price, remember that it’s just a business transaction, not a judgmental comment on your artwork, your gallery, or you.

● Know your limits, but don’t go there right away. If the customer can talk you into two small concessions rather than one big one, they’re more likely to be satisfied with the deal.

● Ask for something in return. A customer may be willing to use cash rather than a credit card, put their name on your mailing list, or give you something else of value in return for a lower price.

● Use negotiation to close the sale. “If I give you this price, will you buy it now?” is a great way to separate buyers from lookers.

In today’s economy, you can expect more and more retail customers to test the firmness of your prices. If you keep your wits about you and exclude emotions from the process, though, you can use that trend to build your sales.

Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, motivating personnel, financial management, and business strategy.

Taking Stress Out Of Negotiations

Negotiating has earned its reputation as an unpleasant process in large part because it is inherently stressful. Stress is produced when something or someone blocks a person from obtaining a desired goal, which just about defines the process of negotiation. Each party is blocking the other one in some way. “I won’t buy unless you give me this” is just another way of saying, “You can’t obtain your goal (to get the order) because my demand (to get the concession) is blocking your way.”

Two other stressful things happen in negotiation. The blocks generally get bigger and bigger as the easy concessions are made early and the tough ones—the big price cut or the large volume order—are left to the end. And, the closer you get to the end, the closer each person feels to achieving his or her goal. The carrot is dangled closer and closer to the donkey’s nose.

Stress, stress, stress. That’s the real reason many people feel uncomfortable when put into a negotiating role. The uncertainty of the outcome is stressful. The pressure to make multiple decisions is stressful. The fear of feeling outfoxed is very stressful. It’s certainly a lot less stressful to say, “Sorry, our prices are firm. Take it or leave it.” You get the pain over with.

Negotiation doesn’t have to be that way. I’m not saying that you’ll eliminate the uncertainty, the decision-making, or the possibility of leaving some money on the table, but you can make the process less stressful if you have the right attitude.

The better way, of course, is win/win negotiation, where both parties recognize that the value side of the equation is not finite. If you can focus on building the value of the deal, both the buyer and the seller generally win. Win/win negotiation is at the heart of the Creative Selling System because it focuses on need satisfaction.

Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, motivating personnel, financial management, and business strategy.

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Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, motivating personnel, financial management, and business strategy.

Negotiating Like A Pro

Do customers in your industry pay the asking price? Or do they routinely ask for a lower price, better terms, extra merchandise, rebates, slotting fees, or extended service? If you sell business-to-business, you’ve probably never had a customer agree to pay your asking price on the first pass. It’s becoming more common in retail sales, too. What your customers are doing, of course, is practicing an art as old as commerce itself. They’re negotiating.

Negotiation is that stage of the selling process that occurs after the commitment to buy is made but before the sale is actually closed. It’s when the buyer and seller come to terms on the conditions under which the product or service is provided.

Sounds imposing, doesn’t it? And it can be a complicated undertaking, which is why I suggest you approach negotiations as carefully as James Cameron approached the production of Avatar. You need to coordinate all the various components of the negotiation if you are going to produce a successfully orchestrated sale.

Negotiation is a matter of choices by both parties. One party chooses whether or not to offer something and the other one chooses whether or not to accept it. As you’ll see, it’s not always the seller who does the offering, nor is it always the buyer who does the accepting or rejecting. Nor is price the only item subject to negotiation.

When do you negotiate? If you’re a creative seller, you only negotiate the terms of your proposal after the prospect has made the commitment to buy the idea you are selling. If the prospect doesn’t like the idea, no amount of negotiation of the price or any of the other terms will make the sale happen. But once that commitment is made, you can assume that you will negotiate the sale in one way or another.

The price to value ratio is at the heart of every negotiation. Both the buyer and the seller negotiate both sides of that equation, giving gains on one side in return for gains on the other. When the needs of both the buyer and seller are met, the sale occurs.

Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, motivating personnel, financial management, and business strategy.

Effective Team Sales Presentations

Each team, even if it consists of only two members, should have a leader. That’s usually the senior person on the team and will be the person the prospect will tend to address with questions. It doesn’t have to be, but it usually happens that way. The leader will also generally be the one to open the presentation and ask the closing question. If there is any question about who’s going to be the leader on your team, settle it before you go into the presentation.

But don’t let the leader look like the Grand Poobah attended by his retinue. If the leader delegates all the menial tasks like handing out materials to the lowly lackeys on the team, the prospect is liable to sense a power display in progress, and react negatively. Eliminate this problem before it arises and make sure the leader is perceived as a member of the team, not its monarch.

On the other end of the scale, also make sure that every member of the team actively participates in the presentation. Each person should have a speaking role of some sort, preferably related to their role in the seller’s plan to serve the prospect’s needs. You don’t want the prospect wondering why that guy in the corner isn’t saying anything while you’re trying to make the points in your presentation. The Metropolitan Opera may need spear-carriers, but your sales team doesn’t.

In order to keep your team call focused on results, make sure everyone on the team understands these points about the upcoming call:

What are we trying to do?
If this call is successful, what will happen?
Who are the key players?
What happened on the last call?
What are we going to ask them to do?
Why should they do it?

The choir always sounds better when they’re all singing the same song.

Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, motivating personnel, financial management, and business strategy.

Preparing The Team For Your Sales Presentation

Pre-call preparation for the team presentation is essential. You should each know what your respective roles are going to be on the call before you begin the presentation. Even if the presentation is one you’ve done together many times, rehearse it before you go into the meeting. This means everyone on the team, including your company’s CEO. And the practice must be a full dress rehearsal complete with the actual props you’re going to be using.

One of my most embarrassing moments occurred during a team presentation. It happened because we had not rehearsed with the actual materials we were going to use. There were four of us making a pitch that we had done many times together. Our presentations usually involved the top decision makers and were quite lengthy and detailed. We typically used a lot of boilerplate material, but the key points were always customized for the prospect we were pitching.

The climax of the pitch came when I would present our revenue projections for the prospect. I typically jumped into that page like a preacher at a revival, giving it everything I had. On this occasion, though, when I turned the page I saw the headings of the columns of figures carried not this prospect’s name but the name of the company we had pitched the week before. The figures were correct, but they looked like they belonged to another company.
We all saw the simple little word processing mistake at the same time and everyone in the room was embarrassed, including the prospect. But the damage had been done. This little mistake completely undermined the “personal attention to each client” benefit that was our primary selling point. It cost us a $6 million client. The material had been proofread by three people, including me. But we hadn’t used the actual materials in our rehearsal the night before. I’ll always believe that we would have caught the mistake if we had followed that simple little rule.

In addition to the pitch itself, you should also rehearse the answers to particular questions and objections that you expect to crop up. It’s important to know which person on the team is going to answer which question so that there’s no fumbling when it arises. If the prospect asks you about delivery dates, for example, you don’t want a long awkward pause followed by three people giving three different answers all at once. You also don’t want your team leader to “hand off” a question to someone who’s not expecting it.

You also need to organize your visual aids under the management of one member of the team. We’ve all seen blooper video where three outfielders collide under the same fly ball in short center field. You don’t want that to happen to you in front of a room full of prospects, so make sure each piece of equipment and each piece of hand-out material is one person’s responsibility. Your hand-outs, by the way, should be managed the same way they are in a group presentation—the one team member responsible for them passes them out with the order and flow you want.

Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, motivating personnel, financial management, and business strategy.

Playing Golf The John Kennedy Way

At last, a golf instruction book that tells you how to think about the game, not just swing a club! It's Tales From The Lesson Tee by John Kennedy, Director of Golf at Westchester Country Club. Kennedy writes in the spirit of the famous quotation from Bobby Jones, "Competitive golf is played mainly on a five-and-a-half-inch course, the space between your ears." His book is a compendium of stories, suggestions, and well-thought-out examples that prove how we mentally approach the game of golf is just as important--if not more so--than the physical moves we use to play it.

Kennedy's long, rich experience in golf shows on every page. He talks about the lessons he learned teaching the game to everyone from rank beginners to tour pros during his more than 20 years at Westchester, a PGA Tour stop for decades and one of the largest private clubs in the country. The PGA of America gave Kennedy the 2010 Horton Smith Award, honoring him as the nation's leading educator in his profession. When he makes suggestions about how to think about your game, you should listen.

Reading the book is like having a long, easy conversation with Kennedy. He doesn't just tell you to practice more, for example, he explains how to get the most from your time on the range, then mixes in a few stories of players who've done it both the right way and the wrong way--often to humorous effect. There are sections on how (and why) to set reasonable goals for yourself, how to find and work with an instructor that's right for you, how to maintain your mental equilibrium before, during, and after a round, and much more.

It is absolutely refreshing to read a golf instruction book that never once promises to help you hit it longer, higher, or straighter. The subtitle tells it all: "How To Know Your Game, Know Yourself, And Play Better Without Changing Your Swing."

In addition to writing about golf, Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, motivating personnel, financial management, and business strategy.

Dealing With Dangerous Audiences

On very rare occasions a group presentation will turn ugly. No matter what happens, keep your cool. If you get a hostile question or comment, thank the person for sharing their thoughts with you, then deal with it just like you would handle an objection. If the whole room starts twitching in their seats, stop your pitch and ask them if you’ve said something wrong, then correct your misstatement.

The most common problem you’ll face with groups, though, isn’t hostility, it’s keeping them on the track you want them to follow. It seems like every group has a leader or a loud-mouth (sometimes it’s the same person) who wants to comment on every point you make, and everything everyone else says, too. Don’t take it personally, though, because this person probably acts the same way every time this group gets together. In fact, you can usually identify this guy before he opens his mouth because the rest of the crowd will start rolling their eyes when they see his hand go up the first time.

I wish I had a magic incantation for you to use in this situation, but I don’t. All you can do is stay pleasant and polite, not hesitating to change the subject back to your presentation before the loud-mouth can ask a follow-up question. Try to resist the temptation to put them in their place the way a stand-up comic deals with a heckler in a nightclub. Just grin and bear it and try not to lose your place in your pitch. Actually, the sympathy the rest of the group feels for you might well work in your favor

Another unpleasant situation is when the meeting degenerates into the dreaded “I Can Top That” routine. When the war stories start, everyone in the room seems to have a primal urge to contribute one. Each one has to be more horrible than the last one, of course, and the negative energy in the room just builds and builds. If it goes unchecked, you end up with an ugly mob on your hands.

Once again, the best tactic is to jump in before the momentum builds. The best rule of thumb is to interrupt after the second story is told. Don’t let the third one even get started. Give them a polite “That’s very interesting” and get back into your presentation. If you’re really good, you’ll be able to relate the benefits of your proposal to the problem that sparked the first story.

Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, motivating personnel, financial management, and business strategy.

Keys To Sales Presentations To Groups

The dynamics of group presentations can be interesting, to say the least. This is a sales presentation, not a floorshow, so you want to encourage questions and comments from the group. In fact, you should plan to ask some questions of your own just like you would if you were meeting with the prospect one-on-one.

Your questions can either be thrown out to the group as a whole or addressed to one person in particular, depending on which is more appropriate. You will find that agreement questions such as “Do you like this idea?” don’t work very well in a group setting. There’s too much danger of the group splitting into factions or a particularly out-spoken member shooting you down before you get into your presentation.

Information questions, though, such as “Who is your biggest competitor?” can work very well. Many times, they’ll spark an intra-group discussion, which is a great time to listen closely and learn a lot. Watch the group dynamics to learn who the leaders really are. Obviously, you’ll want to listen to what they say about their business, their market, and their competitors as well as what they say about your idea, your company, and your competitors.

You should welcome questions or comments that come from the group, even when they break up the flow of your presentation. If the question is one you don’t want to answer yet, it’s perfectly acceptable to say that you’re going to cover that subject in a minute. Just make sure you do cover it before you end your presentation. If it’s a question about your proposal that indicates the listener doesn’t understand something, take the time right then to make it clear. If one person didn’t get it, there are probably others who missed it, too.

Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, motivating personnel, financial management, and business strategy.

Making Public Golf More Fun

The golf course architecture firm of Robert Trent Jones II® (RTJ II), designers of such storied public golf courses as Poppy Hills and Spanish Bay in California, Washington’s Chambers Bay, and hundreds of others in more than 40 countries around the world, offers ten tenets supporting accessible and affordable public golf.

They come in the form of a Public Golf Proclamation that complements efforts of the ASGCA, NGCOA, USGA, The PGA of America, and golf organizations, associations, and governing bodies worldwide to bring the game to more people in more places.

We should all embrace the comments made by Master Architect Robert Trent Jones, Jr., who said, “We believe that golf should...be easily affordable and accessible to everyone who wishes to play it.” Jones took this further, writing in a recent letter to the New York Times, “Golf architects are often called upon to design courses that support upscale real estate developments. But the game’s roots reach down into the Earth, not up into trophy homes. Golf first developed 500 years ago as an accessible and affordable sport that brought people together outdoors, rather than separating them. Many great golf courses serve the public and the environment. The future of our sport lies in embracing the Scottish tradition in which all people are equal as they stand over a white ball.”

The firm's tenets say:

We aspire to:
1. Work with municipalities and other government entities to create great golf courses for their citizens through insightful, integrated master plans specific to each community.
2. Assist communities in creating programs and initiatives that make great public courses accessible and affordable to everyone.
3. Advocate for the creation of golf facilities on degraded sites to return unproductive land to productive and sustainable public uses.
4. Always protect and enhance the environment for the good of all.
5. Design courses that require less earth moving, water, fertilizer, and other resources in an effort to keep investment and operating costs—and therefore green fees—reasonable.
6. Create wider strategic routings and sets of shorter “family tees” to encourage children to take up golf and have fun playing it.
7. Advocate for innovative practice facilities where young people and newcomers can learn to love golf, and support programs and organizations that introduce new players to the sport.
8. Design facilities that encourage speed of play, including inventive layouts such as “Learning Courses,” par-three routings, 6-, 9-, and 12-hole loops, and others.
9. Create public courses that are flexible, fun, and challenging to golfers of a wide range of abilities.
10. Encourage golf course owners to support local businesses and take an active role in their communities.

Given the declining state of the game today, it makes sense doesn't it?

In addition to writing about golf, Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, motivating personnel, financial management, and business strategy.