Understanding and Dealing with the Savvy Buyer
By Michael L. Roth
Sandler Systems, Inc.

Buyers will always try to get as much as they can for their money—but you can’t deliver quality products and services if you give up too many yards in the negotiating game. It is in both your best interest and your customer’s that you MASTER the art of negotiating. Remember: Everything you want is owned or controlled by someone else. You are negotiating all the time!

Why learn how to professionally negotiate?

• Too much discounting
• Salespeople sell on price not value
• Buyers are getting tougher
• You often end up in lengthy, uncomfortable price negotiations
• If you walk away from the table wondering if you got the best deal you   could for your company

Do you want to learn how to deal with a “Player”? A player is one who relates to negotiation as a skill game, enjoys it,studies it, and plays to win. A player enjoys the game as much as winning. Most salespeople have no idea how to master the game when facing a “player." You must do several things to become a player. First, there are hundreds of courses and thousands of books out there teaching customers how to negotiate with salespeople.  If you are not sharper than your buyer you will lose.

The Buyer sets the stage for him to win by: telling salespeople “I need at least three bidders,” never letting the salesperson know where you stand, taking the deal away at least once, looking for free consulting, issuing a Request for Proposal (RFP), timing purchases at the end of the quarter.  All of these things put pressure on the seller. The Savvy Buyer is compensated on the percentage off list that they achieve. Their “A” vendor always negotiates last. They may assign a “coach” to each vendor. They will pre-negotiate and renegotiates.  They lead with lawyers.

What are Your Negotiating Tactics?
Under pressure we tend to react vs. respond. Reactions are instinctual—fight or flight. On the response continuum, that translates into wimpy or dominating.

Three-Step Mobile Defense Plan
How do you respond to a professional buyer effectively? Tactics like going back to pain with rewards and reverses, and the strip line may not be as effective with the professional buyer as it is with the end user. A simple, three-step mobile defense plan is designed to give you maximum advantage, the ability to work with finesse, and to play effectively with a player under intense pressure.

First Line of Defense: Give them nothing, except a stroke and assurance.

• The natural concern of most people is that they are being treated fairly and
  not being taken advantage of.
• Give the prospect assurance that he is being treated fairly.

Second Line of Defense—Give nothing but sweat.

• Struggle
• Act consistent to your position

Third Line of Defense

• Drop the price, but get something of equal or greater value in return.Often you can give items of value to the buyer. These items typically will be perceived as valuable and no price discount is necessary.

This is a short story about a tough process for most of us.  If it makes sense to get better at Negotiating, sign up for the Northern Kentucky Chamber’s University course “Negotiating with the Savvy Buyer." Call Mike Roth (513) 753-9400 xt.102 or register with the Chamber.