Negotiating a Sale

4. Controlling the Negotiation

4.1 Establish what points you are negotiating and how the negotiations will be handled.

• Give the customer your terms and conditions when you make your offer to supply.
• For a major deal, propose written heads of agreement, setting out the key points of the deal you are proposing.
• If appropriate, ask the customer to itemise the areas in which he or she wishes to negotiate. Write these down to avoid last-minute sticking points.
• Agree ground rules with the customer that recognise that nothing is final until all the elements of the deal are agreed.

4.2 Do not reveal your negotiating position.

• For example, if the customer asks what your minimum price is, say it depends on the size of the order.

4.3 Ask a lot of questions and listen carefully to the answers.

4.4 Ask for a break, if you need time to think before agreeing a point.

4.5 Confirm understanding each time a key point is settled.

• Summarise the state of the negotiations, before and after each meeting.

4.6 Be aware of common negotiating tactics.