Why is negotiation important in sales? Here are reasons why:
1. Negotiation can be the difference between winning and losing.
2. Negotiation can lead to a better deal for you and your company.
3. Negotiation can help you to learn more about the other party, their priorities, and their positions.
4. Negotiation training helps you to develop important negotiating skills which will help you in all areas of your life.
5. Negotiation is fun!
6. Negotiation provides a great opportunity to practice and improve your people skills
Let us discuss each in detail below:
Why is Negotiation Important in Sales?
1. Negotiation can be the difference between winning and losing:
If you don’t negotiate, then you are leaving money on the table. Reducing price, increasing profits, increasing volume, etc., are all examples of what could happen if you negotiate better.
2. Negotiation can lead to a better deal for you and your company:
When you negotiate well, it will result in both parties being happy with the outcome because they will know that they have been treated fairly and respectfully by the other party.
In addition, when each side is happy with their respective position, it leads to a long-term relationship between both parties that makes both sides more willing to do business with each other again in the future (and again and again). This is known as a “win-win” negotiation.
3. Negotiation can help you to learn more about the other party, their priorities, and their positions:
By listening carefully to what the other party has to say and by asking good questions during negotiations, both parties can come out of negotiations with a much better understanding of each other’s needs, interests, and positions than when negotiations started.
This is important because it helps both parties feel positive about each other after negotiations are concluded which makes them more likely to want to do business with each other again in the future (and again and again). This is known as a “win-win” negotiation.
4. Negotiation is fun!
Negotiation can be a lot of fun and exciting if you are doing it right. The problem is that most people think that negotiating is about being aggressive or being a bully or being a know-it-all or being pushy or being obnoxious. This is not true.
If you negotiate in this way then you will probably lose money and/or make enemies in your negotiations as well as in your life in general because nobody likes to be bullied or pushed around.
Because of this, negotiation training can teach you how to negotiate more effectively so that you can have more fun and fewer enemies in your life (and still get what you want).
5. Negotiation provides a great opportunity to practice and improve your people skills:
Negotiating well with others also means being able to communicate effectively with others as well as listening effectively so that both sides can get what they want out of negotiations. In addition, negotiation training helps people learn to work together (cooperatively) for mutual benefit which is an important skill for all relationships, especially personal ones.