May 26, 2020

Change Your Mental Model

When negotiating a deal, most people focus on one thing – the terms. They want to get the best possible contract features in order to maximise their gain. 

Many of the sales people we train have similar ideas. They think that a deal is all about defining the terms both parties will agree to.

But that’s not the case. 

As soon as the sales people learned this, they experience a shift that made a significant difference in their ability to negotiate.

Here’s the thing…

Contract terms are important, but not as much as the experience of working with you.

That experience is what brings the most satisfaction and value to the other party. And thus, providing value is the key to winning any negotiation.

In terms of values, what do you count as the most important?

There’s no right or wrong answer here. The fact of the matter is that value is subjective. Each person has their own set of things that matter to them. If you can deliver to their values, you significantly improve your negotiation position.

This is why it’s important to talk to the other side about their needs. Find out what will delight them more than anything.

There are five things you must think about as the foundations of value:

  • The situation

  • Time

  • The use of your services

  • Personal preferences

  • Alternatives

Once again, these things are highly subjective. This means that you’ll have to deliver a different set of values to everyone you want to close a deal with. If you can identify what the other side wants with regards to these five things, the negotiation can be a breeze.

Do you want to learn how to negotiate to create more value for you and your clients? Click here to contact me.