Enigin Help - Negotiate the Final Deal
Often Enigin Distributors and Enigin Partners find themselves in negotiations, which can often be frustrating, especially if you already feel as if you’ve “closed the deal.”
However, as Enigin always teach their Distributors that the deal isn’t really closed until the final contract is signed, and it’s that final contract that comes out of the negotiation process.
These posts, with the help of bnet.com, provides a step by step formula for negotiating a final deal.
2: Prepare for the Negotiation
Before actually sitting down to negotiate final terms, ask yourself four questions (in your own mind if not on paper) that will help you understand where you are now, and where you’ll need to get, in order for the negotiation to be successful:
- Question 1: What are the parameters that need to be negotiated? Collect and evaluate information on leverage, values, sale prices, competition, and other factors that will affect the negotiation. Example: You know that the CFO greatly desires a three-month ROI, rather than the six-month ROI you’ve proposed. You are therefore aware that you may either need to adjust the price in order to produce that ROI, or come up with some form of alternative financing, like rent to own.
- Question 2: What are my realistic expectations for the results? Temper your aspirations with feasibility based on what your counterpart has in mind, and reassess your expectations as the negotiating progresses. Example: You know that your counterpart expects to pay only marginally more than they paid ten years ago for the same service. You’re not going to get double the old price, no matter what. But you might get a 33 percent increase.
- Question 3: What are my all-important pricing parameters? When it comes to price, know the deal you want to forge, and be able to justify it as being realistic. Example: You know that the largest discount you can possibly offer to still remain profitable is 15 percent. Because of that, a discount larger than 15 percent is not acceptable under any circumstances.
- Question 4: Where do I have room to maneuver? Leave yourself some bargaining room, but make sure you have a plausible rationale for the positions that you take. Example: You know that your installation team is idle right now, so you can realistically offer the customer an immediate installation, if they’re willing to pay full price.
Next Step in the Next Post
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