Negotiate the Offer
The heart of the sale is in the bargain. This is one the elements that sales persons love to do. It allows them to flex their muscles and to use their talents. They enjoy the exchange that goes on during the negotiating process and the feeling of achievement for negotiating a good deal.
In order to do this, you should ensure that you have some points to bargain. Discuss your flexibilities and your hard points with your boss to get a clear understanding of what you can offer at the negotiation and what you cannot. You may be flexible to a point that does not affect your margins; after all you are in the game to make a profit and earn some money.
Avoid long drawn negotiations as well as these will not result in a positive outcome. The aim of the negotiation should be to offer a few choices and decide between them. If you start complicating the negotiation there are chances that the complexity will result in things being overlooked. As in everything else in life, keep it simple.
Once the points have been negotiated, make sure to put the terms of the negotiation in writing. Discuss the points of the negotiation with the customer and send a follow up e-mail to the customer to ensure that the terms are in black and white.
Always remember that you are negotiating with the customer to win them over and not to win at their cost. Negotiations may tend to flare up as both parties try to convey their point of view. Keep negotiations firm but courteous.
The aim of the negotiation is to achieve a win-win situation for both the customer and yourself. If the situation turns into one where you are losing value, you need to establish the stage where you can and should walk away.
No deal is better than making a bad deal. You can always come back with a better offer, but once an offer and a deal has been made, you will need to live up to the terms of the contract. That may be more harmful in the long run than the temporary setback of losing a sale.
In summary:
Understand your flexibilities.
Be firm but courteous.
Negotiate for a win-win situation.
Be ready to walk away.