June 01, 2020

Understanding Your Bargaining Power

We all know that confidence is crucial to winning in sales. If the prospect sees that you trust yourself and your offer, they’ll be much more likely to trust you as well.
Yet, many salespeople and negotiators don’t display enough confidence. It becomes obvious in the way they approach negotiations.
This was one of the most important topics we discussed in our training sessions with sales people. We aimed to help them discover where true bargaining power lies.

The answer is very simple, though you’ll need the right mindset.
You must understand that you have a lot more bargaining power than you might think. When you sit down to negotiate, you need to convey this power from the first moment. Otherwise, the other side will assume the upper hand.
The biggest problem with most people is their tendency to underestimate their power.

This stems from a lack of confidence. About 20% of your bargaining power goes up in smoke if you back off too soon.
The client says something that makes you terrified of losing them, and you bend over backwards to agree to terms that you’re not comfortable with.
Everything you do or say sends a certain message to the client. Establishing the right kind of connection will give you all the power you need.

I emphasise the importance of listening. It gives you the chance to see what you can do to create a win-win outcome.
But all that listening won’t amount to much if you don’t respond in the right manner. And if you lack confidence and underestimate your power, negotiations won’t go in the direction you want.

I’ll leave you with a question: Do you know how much bargaining power you have?
Click here to learn how to unlock your full negotiating potential.