4 Deadly Sins of Sales Negotiations – Hope and 3 Others

We all hear so much about the smooth Donald Trumps of the world that we can fall in to the belief that everyone shows up for a sales negotiation better prepared than we are. Nothing could be further from the truth. In fact, there are four common sales negotiation mistakes that even really smart people make all the time. Are you making any of them?

The 4 Deadly Sins Of Sales Negotiations

It turns out that the reason that so many sales negotiations turn out poorly for negotiators is because they enter into the negotiations with the wrong state of mind. Instead of preparing for the negotiation, they go in with a “let’s hope for the best” type of mindset. How can they possibly hope to do well?

Sales negotiators who have this type of mind set more often than not don’t do well during a negotiation. They fall prey to the four deadly sins of sales negotiations:

  1. No plan
  2. Bad agreements
  3. Poor reading skills
  4. No follow up

Your Plan Is That You Have No Plan!

While I worked for Siemens, there was a large French-Canadian director who would occasionally explode in strategy meetings and shout at people that “Your Plan Is That You Have No Plan!” In a sales negotiation, this is often the case when people enter into the negotiation without a plan.

Instead of a plan, they have hope. Hope that things will go well. That they won’t make too many mistakes. That the other side will make mistakes. A sales negotiation is a journey, not a destination. You need to have a plan (concessions, demands, questions, schedules, etc.) for how you are going to get to where you want to go.

Agreement Without Clarity

During everyday conversations with friends and coworkers, we all have a tendency to agree to things that we may not have a full understanding of. This is a polite way of keeping the conversation going even when we may not fully grasp what they are saying – we figure that we can pick it up later on.

This same type of behavior during a sales negotiation can be disastrous. If you don’t take the time to fully understand what you are agreeing to, you may find yourself quickly in a bad situation. Call for a break, take a time out, or ask the other side of the table to better explain something before you agree to it.

Doing A Poor Job Of Reading

Looking the other side in the eye and signing a contract with a big flourish sure can make a strong impression – that you don’t have any idea what you are really signing. I learned a long time ago that he who takes the notes, ultimately controls how a meeting turns out. The same goes for sales negotiations – it really doesn’t matter what you THINK you’ve agreed to, it’s the words that make it onto the paper that really matter. Take the time to read them!

Follow Up, Follow Up, Follow Up!

It’s too easy to think that a sales negotiation is over and done with once the last paper has been signed and the handshakes have been exchanged. However, both sides of the table have a responsibility to follow up and make sure that the agreement is being executed by both sides. Not only is this a critical part of doing business, it can have a big impact on any future negotiations between the two sides.

Final Thoughts

A long time ago I took a scuba diving class. One of the key lessons that they taught in that class was the simple phrase “Plan your dive, dive your plan.” The same thing can be said about sales negotiations: you need to have a plan and you need to follow it if you want to have any chance of being successful.

We now know what can happen if you don’t have a plan: you’ll end up skipping over important steps like agreeing to things that aren’t clear, not reading things that you are signing, and not following up after the deal is done. Remembering to plan your negotiations ahead of time and avoiding the 4 deadly sins of sales negotiations will allow you to close better deals and close them quicker.

Debt Negotiations

Are you worried as to how you’re ever going to pay off your credit card debt? Well stay with me, were going to do some scenarios showing you the problems with credit card debt and the solutions that you have available to you. We’re also going to talk about how you can possibly negotiate your own credit card debt, saving yourself thousands and thousands of dollars. First of all, let’s talk about the problem itself. Let’s suppose you owe $30K in credit card debt. If you owe $30K and your average interest rate is 18%, according to bankrate.com, your minimum payment would be $750, and it would take you 37.5 years to pay this back. You would be charged $44,416.00 in interest and that’s on top of the 30K that you borrowed. Your grand total would add up to $74,416.00. You can see why so many Americans are in financial trouble.

Now let’s talk about your options. With debt negotiations you may be able to save yourself thousands of dollars of interest and payments. Let’s assume that you are current. Debt negotiations don’t necessarily mean that you will always settle the debt. The first debt negotiations would be getting your creditors to lower your interest rates with more favorable terms. Again this could possibly cut your payment in half and if you’re able to add additional monies to the payment you could be paying the debt off a lot sooner. However, if you are having a hard time paying your debt, or you’re behind with your credit cards, it is possible that you can have the debt compromised altogether. Let’s assume that you have that $30K in credit card debt again. It is very possible that you can negotiate with your creditors and get them to settle for 25 cents on the dollar. That would mean that you would be paying off $30K in credit card debt for $7500. 00! Now again let’s go back to the original 18% rate. Remember, you were going to be paying $44,416 in just interest. Now, using the power of negotiation, you’re actually paying the debt of at $7500.00. Now, keep in mind that there is a drawback to this which is, it will impair your credit. But if you’re already behind on your credit cards, chances are your credit is already impaired. Not to mention, you can see what kind of problems there are when you are in debt.

It’s a lot better to live within your means and keep yourself out of debt altogether. Think about America right now. The United States may not be able to pay its own debt. That is not good. But let’s go back to the scenarios of what you can do for yourself. Let’s suppose that you hire a debt negotiator. A debt negotiator typically charges 15% of the total debt owed. So going back to the $30K of debt owed, @ 15% their fee would be $4,500.00. The $7500.00 that they would settle the debt for, along with the fee, would have you paying $12,000.00 to pay the debt and the negotiator. That is certainly better than paying $44,416.00 in interest or $74, 416.00 over time. It’s also better than simply paying off the $30K. But, what if you were able to do this yourself? What if you were able to negotiate with your creditors and get them to reduce?

Credit counseling centers only reduce interest rates and late and/or over limit fees. They also charge anywhere between $35 to $45, sometimes even $50 per month. This could add up to over $500.00 per year. Remember they can’t reduce the balances, only interest and fees.

How would you negotiate the debt yourself? After all debt negotiators are trained professionals who know what to say, and when to say it. They are also trained to know the other side, the creditor’s side. But, what if you were trained? What if you were trained to be a debt negotiator yourself… able to handle your own situation, no longer in fear of creditors? What if you were taught techniques where you could actually settle your debt through the mail? All of these techniques are taught through The Debt Negotiating Academy.

How to Create a Six Sigma Presentation to Help Your Business

Six Sigma is a quality management strategy used to help companies make their processes and procedures as efficient as possible in order to reach a high quality output of products and or services. This business theory is used within many businesses to improve both customer satisfaction and the bottom line profits of the company.

It is extremely important for businesses to have the highest quality output possible. High quality products and services keep customers coming back. Good quality creates new customers through previous customer referrals. It gives a sense of pride and accomplishment to the employees and business owners. When quality is low, there is always a reason, and a chance to improve. Sometimes this reason is hidden from business owners and employees because they are too close to the situation. Having a 6 Sigma professional come in to analyze the company processes is an excellent neutral way to fix the problems.

One of the tools used by Six Sigma professional, as well as many business executives, is planning a presentation. This presentation should be put together in a highly organized fashion so that executives, employees and 6 Sigma professionals alike can follow along and easily understand and enjoy the presentation. A presentation is often used to show the business employees what needs to be done to create change within the company.

Six Sigma professionals utilizing a presentation will want to keep it as organized as possible. They should create an agenda to follow as an outline for the meeting. The main and most important topics should be covered first. The hidden problems within the company that have been identified and the possible solutions should be presented early on and should be the main focus of the meeting.

The presentation should include information so that any employees affected by implemented changes are clear on what will be happening. They should not be left in the dark because this can cause confusion. When employees are confused about their role within the company, they feel unsure and unmotivated to do their best. This leads to dissatisfaction and lower quality output. The presentation should bring out specific points that focus on the flaws within procedures and policies. By paying attention to the details of the problem, there is a better chance those same problems will not be repeated in the future.

A presentation given using PowerPoint, a Microsoft slide-show program, is a very popular choice within all business industries. When created and used properly, Six Sigma presentations provide the right visual and audio aids to make it enjoyable and highly graspable to all business people involved.