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Sales Negotiation Skills

Negotiation skills are an important part of the day-to-day interactions of salespeople and contribute greatly to business success. Learn more about negotiation skills and how to apply them with this starter Qstream microlearning course.

Category: Sales

Industry: General

Questions: 15

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Sales Negotiation Skills

Navigate through the Qstream questions below to preview. Each challenge is designed following Qstream’s best practices for maximum knowledge reinforcement and engagement. This Qstream is free for clients to use as a starting point.

1. When to use Principled Negotiation >
2. Principled negotiation method >
3. When clients keep canceling meetings >
4. Identifying a client’s interest >
5. Options for mutual gain >
6. Establish Objective Criteria >
7. Bottom Line Approach >
8. Best Alternative To a Negotiated Agreement >
9. Focus on the Merits >
10. Negotiation Jujitsu >
11. A Misleading Client >
12. Recognize Tactics >
13. Good Working Relationships >
14. Move to Commitment >
15. Negotiating power >

Follow the interactions on each screen to answer Qstream questions as a Participant.

In order to determine whether it is worth the extra effort to use principled negotiation, which of the following should you consider?

Answer explanation:
It is natural to wonder whether using principled negotiation is appropriate in every situation. This approach takes a lot of work and perhaps there are other approaches you may use to achieve success.
To determine whether you should use principle negotiation, ask yourself the following:
• “How important is it to avoid an arbitrary outcome?”
• “How complex are the issues?”
• “How important is it to maintain a good working relationship?”
• “Where are you in the negotiation?”

As a salesperson when using the principled negotiation method, you should focus on which of the following?

Answer explanation:
The principled negotiation method changes the game for sales organizations as it promotes salespeople to negotiate based on merits.

In this approach to negotiation, the participants in the negotiation are problem-solvers who have the goal of a wise outcome that is reached efficiently and amicably. This approach is efficient because you do not have to dig into positions and then dig yourself out of them to reach a decision.

The negotiation remains amicable because participants see each other as human beings, regardless of substantive differences.

Your client continues to cancel meetings that you’ve scheduled to negotiate their annual contract. When considering potential reasons for the client canceling, you should ask yourself which of the following?

Answer explanation:
During a principled negotiation, it is imperative that you separate the people from the problem. While it may be tempting to see the people and the problem as one entity, the substantive issue must be viewed independently.

By separating the people from the problem, you are able to be soft on the people and hard on the problem, essentially working together to attack the challenge and striving to arrive at a fair agreement.

You’re early in the discovery process with a prospect and are interested in identifying the client’s interests. To uncover these interests, the questions you should ask yourself are which of the following?

Answer explanation:
The principled negotiation approach focuses on interests, not positions. Therefore, you must explore interests to make sure you have a clear understanding of all of the client’s interests, including basic human needs. This approach examines not only why a client may be interested in something but also why they may not be interested in something, keeping in mind that there are likely multiple interests among all parties in the negotiation. You must also avoid having a bottom line so that there is room to consider a variety of options.

You feel like you are in a situation with limited choices and no matter what you do, neither you nor your client will be satisfied. To invent options you take the following steps: ______, analysis, ______, action ideas.

Answer explanation:
When you use principled negotiation, it is important to invent options for mutual gain. Multiple options open the conversation from limited options to many possibilities.
Having several possibilities provides the opportunity to decide which option to select later. Opening the conversation increases the possibility that everyone involved in the negotiation will be satisfied.

You are in the middle of contract negotiations with a client and neither of you is interested in conceding on certain requirements. As an attempt to move negotiations forward by establishing objective criteria, which of the following should you consider?

Answer explanation:
Using objective criteria during principled negotiation helps you reach a result based on standards independent of will. You must reason and be open to reason to create the objective criteria. When you have established objective criteria, you are able to yield to principle, not the pressure of digging into a position or adhering to a bottom line

As a salesperson, what are some risks of using a bottom line approach?

Answer explanation:
Many people view having a bottom line as having protection from entering into a bad arrangement. This protection may be valid but it may also be limiting. Those limits come with risks and can be costly. Having a bottom line may prevent you from inventing and agreeing to a wise solution for all participants involved in the negotiation. Your bottom line, an arbitrarily selected figure, is not a proper measure of what is acceptable.

Your client has responded with a solution that does not meet your bottom line. What can you do to develop your BATNA (Best Alternative To a Negotiated Agreement)?

Answer explanation:
Your BATNA, or Best Alternative To a Negotiated Agreement, is important to help you assess any proposals offered by your client.

When you develop your BATNA, list actions you may take if you are not able to reach an agreement. If you hear something promising, determine what you need to do to make it happen. If you find that some of the promising ideas are possible, select the one you think will work best and pursue it.

During negotiations, ways to get the opposing side to focus on the merits include which of the following?

Answer explanation:
Many people approach negotiations from a position perspective. They stand firm in their position, illustrate their interest in only their own gains, and launch personal attacks to try to achieve success.
When you choose to approach negotiation using principled negotiation, you focus on the merits rather than on positions. You are playing a new game.

If using principled negotiation doesn’t work then using negotiation jujitsu counters positional bargaining moves with methods to direct your opponent to examine the merits.
If neither principle negotiation nor negotiation jujitsu is successful, involve a third party to help change the focus to interests, options, and criteria – all part of principled negotiation but not coming from you.

Your client has made a number of positional bargaining statements. To use negotiation jujitsu, how may you respond?

Answer explanation:
Maintain a safe environment for the conversation by refraining from personal attacks and sticking with questions. Pausing is an effective approach in a variety of situations. Your silence will often prompt the other side to respond because they are uncomfortable. Stay silent until the other party responds, especially after posing a question.

You discover that your client has lied in an effort to achieve their desired result. The best way to handle the situation is to take which of the following actions?

Answer explanation:
Lying is a dirty trick that is frustrating and may cause you to act in a less than desired way. For example, you may wish to remain quiet, putting up with it in order to keep the negotiation going. Another example is to do the same, lying to get what you want out of the negotiation.

In both examples, either one party gets exactly what they want or the negotiation stops completely. Negotiating the rules of the game is much more effective so that the negotiation process itself works for all parties involved.

Regardless of the tricky tactic your client uses, you approach the negotiation by recognizing the tactic, _________, and _________.

Answer explanation:
Rather than yielding completely or trying to beat them at their own game during a negotiation, consider an approach that tames hard bargainers.

Recognize that other parties are using a less than ideal tactic, tell them specifically what you have observed and your issue with their approach, and use a principled negotiation approach to determine how the negotiation will proceed, establishing expectations for everyone involved.

True or False? When using principled negotiation, a good working relationship tends to make it easier to achieve good substantive outcomes (for both sides).

Answer explanation:
You do not need to choose between achieving a good outcome and fostering a good relationship. Having a good relationship will likely help you achieve a good outcome for everyone. That outcome may actually help your relationship get even better. Keep developing those relationships!

What are some general principles to help move from inventing options to making commitments?

Answer explanation:
To achieve success, it is not sufficient to invent options. You must make commitments to make progress. How do you do this?

Begin with the end in mind - think about closure from the beginning. Consider how you may create a framework agreement. Take your time - move toward commitment gradually. Pursue your interests without being rigid in pursuing any particular solution. Complete your approach by making an offer.

What are some sources of negotiating power?

Answer explanation:
There is no single path to successful negotiation. Enhancing your negotiating power embraces a number of ideas, including but not limited to employing the elements of the principled negotiation method; using effective communication; developing a good BATNA; and making commitments.

Additional ideas for enhancing your negotiating power include making sure you understand everyone’s interests, inventing options that may appeal to everyone involved, and using external standards to assess the legitimacy of options.

In order to determine whether it is worth the extra effort to use principled negotiation, which of the following should you consider?

Answer explanation:
It is natural to wonder whether using principled negotiation is appropriate in every situation. This approach takes a lot of work and perhaps there are other approaches you may use to achieve success.
To determine whether you should use principle negotiation, ask yourself the following:
• “How important is it to avoid an arbitrary outcome?”
• “How complex are the issues?”
• “How important is it to maintain a good working relationship?”
• “Where are you in the negotiation?”

As a salesperson when using the principled negotiation method, you should focus on which of the following?

Answer explanation:
The principled negotiation method changes the game for sales organizations as it promotes salespeople to negotiate based on merits.

In this approach to negotiation, the participants in the negotiation are problem-solvers who have the goal of a wise outcome that is reached efficiently and amicably. This approach is efficient because you do not have to dig into positions and then dig yourself out of them to reach a decision.

The negotiation remains amicable because participants see each other as human beings, regardless of substantive differences.

Your client continues to cancel meetings that you’ve scheduled to negotiate their annual contract. When considering potential reasons for the client canceling, you should ask yourself which of the following?

Answer explanation:
During a principled negotiation, it is imperative that you separate the people from the problem. While it may be tempting to see the people and the problem as one entity, the substantive issue must be viewed independently.

By separating the people from the problem, you are able to be soft on the people and hard on the problem, essentially working together to attack the challenge and striving to arrive at a fair agreement.

You’re early in the discovery process with a prospect and are interested in identifying the client’s interests. To uncover these interests, the questions you should ask yourself are which of the following?

Answer explanation:
The principled negotiation approach focuses on interests, not positions. Therefore, you must explore interests to make sure you have a clear understanding of all of the client’s interests, including basic human needs. This approach examines not only why a client may be interested in something but also why they may not be interested in something, keeping in mind that there are likely multiple interests among all parties in the negotiation. You must also avoid having a bottom line so that there is room to consider a variety of options.

You feel like you are in a situation with limited choices and no matter what you do, neither you nor your client will be satisfied. To invent options you take the following steps: ______, analysis, ______, action ideas.

Answer explanation:
When you use principled negotiation, it is important to invent options for mutual gain. Multiple options open the conversation from limited options to many possibilities.
Having several possibilities provides the opportunity to decide which option to select later. Opening the conversation increases the possibility that everyone involved in the negotiation will be satisfied.

You are in the middle of contract negotiations with a client and neither of you is interested in conceding on certain requirements. As an attempt to move negotiations forward by establishing objective criteria, which of the following should you consider?

Answer explanation:
Using objective criteria during principled negotiation helps you reach a result based on standards independent of will. You must reason and be open to reason to create the objective criteria. When you have established objective criteria, you are able to yield to principle, not the pressure of digging into a position or adhering to a bottom line

As a salesperson, what are some risks of using a bottom line approach?

Answer explanation:
Many people view having a bottom line as having protection from entering into a bad arrangement. This protection may be valid but it may also be limiting. Those limits come with risks and can be costly. Having a bottom line may prevent you from inventing and agreeing to a wise solution for all participants involved in the negotiation. Your bottom line, an arbitrarily selected figure, is not a proper measure of what is acceptable.

Your client has responded with a solution that does not meet your bottom line. What can you do to develop your BATNA (Best Alternative To a Negotiated Agreement)?

Answer explanation:
Your BATNA, or Best Alternative To a Negotiated Agreement, is important to help you assess any proposals offered by your client.

When you develop your BATNA, list actions you may take if you are not able to reach an agreement. If you hear something promising, determine what you need to do to make it happen. If you find that some of the promising ideas are possible, select the one you think will work best and pursue it.

During negotiations, ways to get the opposing side to focus on the merits include which of the following?

Answer explanation:
Many people approach negotiations from a position perspective. They stand firm in their position, illustrate their interest in only their own gains, and launch personal attacks to try to achieve success.
When you choose to approach negotiation using principled negotiation, you focus on the merits rather than on positions. You are playing a new game.

If using principled negotiation doesn’t work then using negotiation jujitsu counters positional bargaining moves with methods to direct your opponent to examine the merits.
If neither principle negotiation nor negotiation jujitsu is successful, involve a third party to help change the focus to interests, options, and criteria – all part of principled negotiation but not coming from you.

Your client has made a number of positional bargaining statements. To use negotiation jujitsu, how may you respond?

Answer explanation:
Maintain a safe environment for the conversation by refraining from personal attacks and sticking with questions. Pausing is an effective approach in a variety of situations. Your silence will often prompt the other side to respond because they are uncomfortable. Stay silent until the other party responds, especially after posing a question.

You discover that your client has lied in an effort to achieve their desired result. The best way to handle the situation is to take which of the following actions?

Answer explanation:
Lying is a dirty trick that is frustrating and may cause you to act in a less than desired way. For example, you may wish to remain quiet, putting up with it in order to keep the negotiation going. Another example is to do the same, lying to get what you want out of the negotiation.

In both examples, either one party gets exactly what they want or the negotiation stops completely. Negotiating the rules of the game is much more effective so that the negotiation process itself works for all parties involved.

Regardless of the tricky tactic your client uses, you approach the negotiation by recognizing the tactic, _________, and _________.

Answer explanation:
Rather than yielding completely or trying to beat them at their own game during a negotiation, consider an approach that tames hard bargainers.

Recognize that other parties are using a less than ideal tactic, tell them specifically what you have observed and your issue with their approach, and use a principled negotiation approach to determine how the negotiation will proceed, establishing expectations for everyone involved.

True or False? When using principled negotiation, a good working relationship tends to make it easier to achieve good substantive outcomes (for both sides).

Answer explanation:
You do not need to choose between achieving a good outcome and fostering a good relationship. Having a good relationship will likely help you achieve a good outcome for everyone. That outcome may actually help your relationship get even better. Keep developing those relationships!

What are some general principles to help move from inventing options to making commitments?

Answer explanation:
To achieve success, it is not sufficient to invent options. You must make commitments to make progress. How do you do this?

Begin with the end in mind - think about closure from the beginning. Consider how you may create a framework agreement. Take your time - move toward commitment gradually. Pursue your interests without being rigid in pursuing any particular solution. Complete your approach by making an offer.

What are some sources of negotiating power?

Answer explanation:
There is no single path to successful negotiation. Enhancing your negotiating power embraces a number of ideas, including but not limited to employing the elements of the principled negotiation method; using effective communication; developing a good BATNA; and making commitments.

Additional ideas for enhancing your negotiating power include making sure you understand everyone’s interests, inventing options that may appeal to everyone involved, and using external standards to assess the legitimacy of options.

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