Handling Difficult Sign Clients, Part 3: The Negotiator

NEGOTIATING WITH CLIENTS is often the most stressful thing in our world, particularly for our sales people who don’t have experience! I’m not a master negotiator by any means, but I try to use some basic rules that help me avoid major pitfalls and mistakes.

Negotiating can be intimidating as a topic, but when you think about the big picture of life, we all negotiate, even if we think we don’t. Choosing where to have dinner with friends or a spouse. Figuring out where to go for a vacation with family. Deciding what carpet you and your roommate will choose. We negotiate all the time without stress, so tap into that part of your brain when you find yourself in a position to negotiate!

Here are tips that are easy to use and powerful for you or your team:

1. Know your “floor” before you start. Sometimes when we negotiate it helps to have a sense of what you will not drop below. If you’re negotiating a price, know clearly the very lowest you’ll go and hold tight to that as you start. It means less flip-flopping in your mind during the discussion. Maybe you’re negotiating days off for an employee — the same rule applies. Know clearly in your mind what you are not willing to yield, and that can help you feel comfortable.
2. When you concede, be ready to claw back something. An employee wants five more days of vacation, so maybe you ask for something in return. You ask them to take on an additional responsibility, or work some overtime when you need them. With a client, if you concede on price, look for ways to claw back something: longer time frame, payment in full up front or some other element that makes your job easier.
3. Be ready to walk away. This is the most important rule. Negotiate with a willingness to step away from whatever is on the table. If you are cornered in a negotiation and live to regret what you’ve agreed to, it’s not worth it. Even losing your best client or your most valuable employee is worth doing if you would otherwise leave the negotiation feeling taken advantage of or regretting your decision. If you’re not willing to walk away, it’s not a negotiation: it’s a strong-arming.

I remember a time when a client talked me down on price for part of a project. I convinced myself that the gross profit loss was made up by another part of the project they already agreed to. To this day, I kick myself for not simply saying “No.” I use this experience to more quickly find the no with other client situations!

Encourage yourself and your team to get comfortable reclaiming your power in negotiation. Often the clients and employees need us more than we need them, but we forget that.

Embrace your inner negotiator!