Most entrepreneurs get involved in negotiations when the issues they’re dealing with are only related to money. Big mistake! In fact, they end up losing important sums of cash because they don’t understand the process. A negotiation is a practice through which two parties should try to reach a mutually beneficial agreement and business people of all niches should see them as vital parts of their daily affairs. It’s perfectly true that negotiations involve the topic of money, but they also include other factors that can help parties find common ground. Did you know that entrepreneurs and business owners in general, have the tendency to ignore essential aspects when trying to close a deal? What are these aspects all about and what do they entail? Let’s have a closer look.
Confusing facts with assumptions
Entrepreneurs are used to presenting their products and services in a very formal way. They go for sentences such as: “My products consist only of all-natural ingredients”, “My products feature a money-back guarantee”, and “You can benefit from 24/7 customer support”. These are just facts that won’t convince the other party that purchasing from you is a great idea. Therefore, you have to offer your prospective customer a vision. This doesn’t mean that you have to mention the advantages of your products. Instead, you should focus on identifying his problems and needs.
Explain to your counterpart how your products or services can enhance their life expectancy. You have to let clients know that the things you’re offering can cater to their demands and solve their problems. If your customer has uncertainties, don’t hesitate to clarify them.
Failing to help clients understand that your products are unique
Once you’ve identified the problems of your counterpart (for example, their existing supplier’s incapacity to deliver the products on time) and you’ve managed to explain that you can handle them, make sure to state your own requirements. Entrepreneurs see their merchandise or services like any another product a potential client will store up, or a service they will use to replace the one used now which is wrong.
If your products are unique, you can’t present them as an alternative to the ones the other party already has. You must explain that you’re offering an entirely different item that will better satisfy their needs. Clients must see your offer as a great opportunity to benefit from exclusive goods or services. Great opportunities feature higher price tags, so you should be ready to justify that aspect.
Not realizing that every second spent chatting with a customer is a negotiation
This is the main problem entrepreneurs deal with. They negotiate only when money comes into play. The truth is that the best way to close a good deal is to negotiate. Don’t postpone negotiations because you’ll end up losing your potential clients! Every second you spend discussing with a person you may do business with – a prospective customer, partner, investor, seller and so on – is an opportunity to convince them that your products or services can meet all their requirements.
Acting with indifference in front of your clients
Adopt a warm, peaceful and nurturing attitude when you get involved in a formal negotiation. Ask counterparts to talk about their problems, concerns and needs. Listen carefully to what they’re saying and show that you really want to help them achieve their goals. Can you actually do that as a business owner? Well guess what? You don’t have a choice; entrepreneurs who fail to connect with their peers on a human level end up failing, and you certainly don’t want that to happen.
All things considered, entrepreneurs must know that each interaction with a prospective buyer is a negotiation. It doesn’t matter if you’re sitting at a table in a conference room or not. You can negotiate everywhere, and as long as you’re not greedy to win it all, the end result will bring excellent results to both parties. Provide your potential client with a plethora of details regarding your products or services, and make certain they realize that your offer can truly satisfy their demands. Nonetheless, this doesn’t mean that you have to force your counterpart to close a deal with you. Negotiations can be very demanding and nerve-racking sometimes, so you have to stay calm and be respectful.