The Audible-Ready Sales Podcast
The Audible-Ready Sales Podcast

Episode 48 · 9 months ago

How To Negotiate Early w/ Tim Caito

ABOUT THIS EPISODE

While you’re working your current deals, there are key steps you should take to start the negotiation process early and drive better outcomes for you and your buyers.

In this episode, Senior Partner Tim Caito shares how you can set yourself up for success before price conversations begin — and in the end, close for a premium. Tim’s perspective is helpful for anyone who wants to improve their negotiation process and put a stop to closing for a discount. Share with your teams to ensure they’re using these three concepts in their sales conversations in order to start the negotiation process early.

Check out this and other episodes of The Audible-Ready Podcast at Apple Podcasts, Spotify, or our website.

Here are some additional resources on negotiating early

- Negotiation FAQs & Best Practices

http://apple.co/369t4OH

- Finding Success with Procurement Podcast

http://apple.co/38WH4wR

- Changing Your Conversation with Procurement On-demand Webinar

http://bit.ly/3nN97V4

Once you create that frame of ReferenceOwat what happened if we fail to reach he reement now it's come a hundredeighty degrees around and talk about the next thing, which is consideringthe and expanding the list of items that need to be included for both sitesto secure a great outcome. You're listening to the audible, ready,podcast, the show that helps you and your teams sell more faster willfeature sales leader sharing their best insights on how to create a salesengine that helps you fuel repeatable revenue growth presented by the team Fforce management, a leader in PTB sales effectof. This let's get started hello and welcome to the audible, ready,podcast, I'm Racchel Clapmiller joine today by Tim, Cato Hitim, hello, Racheland everyone. Yes, so we're at the start of another quarter. Another year.Those of you listening you've got deals in your pipeline. I know it and whileyou're qualifying them forward, you...

...also need to be starting thenegotiating process. So tims joining us today talk through ways. You can beginthe negotiation process early, what a concept Rachell think about the endfrom the beginning. Now you know many selling organizations tend to progresstheir deals, one tactical step at a time, awhile, that's understandable.It's actually a common practice, that's fraught with big time mised opportunityopportunity that we most often wish we had taken advantage of what it's timeto close that deal later right, we're in those final stage ar looking backand like Oh, if I had only done this Soroiright, many of us probably hadthat feeling at the end of the year last year. So those of you who are outthere listening if you've had our negotiation training our valuenegotiation training. We know you have the tools in place to do this. Do thisand you're probably doing it right now, but if you have it we're going to walkthrough some things you can do to ensure you are doing the best you canto set yourself up O for success in...

...those later stages of the deal, soyou're not looking back and saying. Oh, if only would av could, as should ariht. So let's start him with those components that we want to make sureare in I'm place early, okay, Rigal. Let's talk about three bigconsiderations for starting the negotiation: Proces, certainlyalternatives, great outcomes and anchors. Sofirstlets start with a somehat, illogical question: What happens toboth sides if we fail to reach Ingreva, you know the impact of life with themost likely alternative to a negotiate. Agreement is actually a very importantframe of eforce for both sides to analyze and fully understand early. Ifwe really want to create more value fan, this is a very difficult frame ofreference to try and set at the end. People want to go back and look at thisat the end, they're much more likely willing to consider it, and maybe eventalk about it at the beginning, yeah...

...that point right there. Those are thosenegative consequences that people have had comen in the message are trying todefine as negative consequences related to the neg required capabilities. Ifthey don't reach an agreement, what bad things are going to happen right? Thatis exactly right and is important for us to consider it too, because if wereally want to create value, we have to create more value than what they wouldget from their most likely alternative. So it's not only negative consequence.It is also positive business outcomes or good things. That would happen yeahwell. So, what's shift to that right M, the second thing you want to consideronce you create that frame of Reference Alwat what happened if we fail to reachyoureemen now it's come a hundred eighty degrees around and talk aboutthe next thing, which is considering the and expanding the list of itemsthat need to be included for both sides to secure a great outcome. You knowwhat must be included in the deal for...

...both sides to really create value, andI put the emphasisis on theire really creatve value, not a little value, bigvalue and in particular, here Rachel. We need to ensure that the view of agreat outcome reflects all the varied interests across the customersorganization, not just one group or one person's position. This is one of theprimary reason starting the negotiation process. Early is so critical. No thinkabout who exactly is the customer when you're sewing complex solution, oddsare the customer is actually a collection of people spread across awhole lot of functions. That honestly, might not all agree on that definitionof a great outcome, Oh and by the way, Rechel. We Hade that exact samecollection, varied interest on our side too, so waiting to the end to secureand negotiate what we refer to here. It force management as the collective. Yesis one of the biggest ways value gets...

...limited in the negotiated agreementsbetween selling organizations and customers. We used don't take enoughinterest into an accountinto account when we're trying to shape these deals.Now here comes the third part, so we've talked about alternatives. We've talkedabout great outcomes. Ndon want to talk about that third component, Rachelanchors. We put all of this into play through the skill of early stage,anchoring it's a phrase I want to divine here. You Know Anchrans thetactical sidety o the sales negotiation process, and we got to focus on thatfrom the very beginning, in other words, start by firmly ambetting into theconversation of full understanding, the impact of both sides, alternatives thatwe faild to reach in Rayment in a broad set of interest that must be addressedfor both sides to secure a great outcome. Now you know those are thethree big pieces are Rachel and there's...

...still the idea of potentially valulimiting tactice. We got to deal with, but that's a different topic right Imean we could we could do a whole couple hours on this t days right TimButwll, stick to thise big three save those others for separate codcast.Let's go back to that idea of early stage, incoring that you mentioned.That kind of goes into this idea of give gets it something else. Youwant to make sure that you're thinking through early in the early stages of adeal boy so true Rachel. So, in addition or early stage, anchoring acourt part of our overall negotiation strategy is to map out our gives andgets way early in the negotiation process. Think of it this way, ratherthan conceding our way to an agreement with the customer at the end, the bestway to create capture more value for both sides is to trade our way to anagreement- and this is where our give...

...gets strategy comes into play. Securinginternal approvals and alignment on the gets that we want to target in thenegotiation, as well as the gives that were willing to exchange for those gidscreating and executing that GIV get strategy is where the internalnegotiation process within our own company informs the externalnegotiation process with the customer. You know, and that's a big thing for usto think about Rachel and when we startit late, we just put ourselvesbehind the curt and potentially slow our own deal down. So the bestnegotiating organizations in the world plan and execute both their early stageancoring and give get strategies from the very beginning yeah and, as you mentioned earlier Tim,you need to be talking to more than just your main contact or that economicbuyer when it comes to negotiating...

...we've, had done a podcast before aboutprocurement, and you know we often talk on this podcast of broadening out yoursales organizations to multiple players in the organnization. But herespecifically, what are your best tips for brotting out broadening out thatnegotiation conversation early, which is probably one of the same of thevalue conversation right there you go up to this point. Rachel we've talked alot about Theu what that gets negotiated, the broader view of the one,let's turn our attention for a minute to the Whoo, and I know you're going tobe surprised to hear me say I think, there's two questions. We need to askourselves here when we broaden the conversation, who are we broadening theconversation with well? You know. The first question is: Who is directlyinvolved with making this decision now? Obviously, we need to be talking tothose that have a formal role in the customers decision process by the wayRachel, including procurement. If...

...they're involved they've got a formerrole, we need to be having conversations with them aboutalternatives, great outcomes, our early stage anchor strategy, but the secondquestion on the WHO to negotiate with to expand that conversation- and thisis an important- often overlook pieace right who will be impacted by thedecision, not just those involved in making the decision who will beimpacted by the decision. You know those in the organization that haveinfluenced relative to the business issue that their organizations tryingto address that likely, if they were asked, would have a strong opinionabout what items should be included in the final agreement, but they don'toften even know that a decision that will impact them is about to be made.So you know fom our perspective. All those people have a vote in securingthe collective, yes and you know, TNAT,...

...to make a pun on what we just wentthrough a few months ago. It's our job to get out the vote, especially whenour differentiation aligns favorably. With that broader audience's definitionof a great outcome, yeah it's about kind of owning that process and whenyou're owning that process, you can better impact it, especially if you'reowning it early like, like you, said, Tim Yeah, it's tough to get to morepeople at the end Rachel, but I's Ik, whot, better and you're actually doingwhat we all say. We want to do create value for the customer. We just have torecognize they usually on their side, have many different definitions ofvalue and we're trying to help them, pull that together, yeah. So those ofyou who are listening if you've had value negosiation, like I said at thebeginning, these should serve as good reminders. But if you have it, you canstill do this process as yourself as somebody who is trying to work the dealbroaden out your sales conversations.

All of these tips. Ten is walkingthrough today should help you get to that information early. So as we wrapup Tim, I love to hear you wrap this up with with ha bottom line. You knowbottom line redil. First of all, you know there's a lot of new on stillexecuting what we're talking about here, but the bottom line is that the bestsales negotiators in the world always start early. They create an early stage,anchoring strategy. They map out their GIVT, get strategy from the verybeginning and from the beginning, they focus on influencing the definition ofa great outcome across everyone required on the customer side toachieve that. Collective, yes, yeah! Thank you. Tim Really appreciateyou breaking this down with us today. I know that you know. Sometimes we kindof give a quick brush rope to these complex topics and these topics can getcomplex when you're trying to close a...

...complicated deal. But hopefully you you listening out. There have foundsome value in this podcast. We've also recorded several with Tim aboutnegotiation. We mentioned the procurement we have all of our valuenegotiation resources, including all the podcast linked up on a valluenegotiation resource page on our website. I will link that in a shownote, so we sure to check that out. There's some great tips there anti. Iknow you've been a great help in developing a lot of that content lot ofgood stuff in there Rachel. So this is just one more version of that old sales.Wisdom start with the end EF mind there. You go all right. Thank you to Imappreciatit all right. Thank you to all of you for listening to the audible,ready, podcast at force management. We're focused ontransforming sales organizations into elite teams, are proven methodologies,deliver programs that build company alignment and fuel repeatable revenuegrowth, give your teams the ability to execute the gross strategy at the pointof sale. Our strength is our experience.

The proof is in our results. Let's getstarted visit us at force. Managementcom you've been listening tothe audible, ready podcast to not miss an episode subscribe to the show inyour favorite podcast player. Until next time.

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