The 10-Point Sales Negotiation Checklist to Win More Deals

Many small business owners feel nervous when the time comes to make a sales call or to negotiate with a supplier to get a lower cost on a contract. And that’s understandable; sometimes, even the most proficient sales teams need to brush up on their negotiation skills to win a better deal.

Here are ten different sales negotiation techniques that small business owners can use to become successful sellers.

Negotiate only with decision-makers.

Too many sales reps have started working on a detailed negotiated agreement only to discover halfway through that the person they’re working with doesn’t have the authority to actually make a purchase. Whenever possible, it’s best for a business owner to do their research and make sure they’re negotiating with a decision-maker inside the organization from the get-go. That way, they won’t lose time and money talking to people who can’t do business with them.

If in doubt, a business owner can ask their negotiation partner directly whether they have the authority to make these decisions. Most people will appreciate that the business owner values their time.

Limit the written agreement to terms that both parties are prepared to live with.

Once a business owner and their potential client put a term into writing, that written agreement becomes more binding. Moving forward, either the client or the business owner can reference those terms and use them as leverage to achieve their goals.

Ultimately, written agreements are extremely important because they help hold both partners to the concessions they agreed to. However, it’s best practice to hold off putting terms into writing until both people agree that they’re willing to stand by them. For example, a business owner who’s selling their products to a local retailer might hold off on writing a per-unit price into their negotiated agreement until they have confidence that they can still generate a profit on that price point and that the buyer will actually be able to pay it. They wouldn’t want to find out after the meeting that they agreed to a price, only to realize that they’ll lose money on that product until the agreement expires.

Know what concessions can be made.

A huge part of negotiation is give and take; both parties need to be willing to make concessions so the agreement creates a win-win situation. When both parties feel like they’re gaining something that they value, they’re more willing to give in to a few of the other’s demands.

But the prudent business owner needs to plan ahead to know what terms they can and can’t agree to in order to create an agreement that’s valuable for their company. For example, a business owner needs to know their proverbial “line in the sand” for how low of a price they’re willing to give. They might be able to concede to a price point that’s fifty cents lower per item, but they couldn’t drop the price by a dollar and still be profitable. Similarly, the person they’re negotiating with might need to ensure that they don’t agree to buy more than a hundred units in a month, but they could buy more than the original sixty they first proposed.

A willingness to make reasonable concessions can help both parties reach their objectives during a negotiation.

Know when to walk away.

Not every negotiation session will lead to success; sometimes, even the most experienced salespeople can’t convince a buyer to agree to the terms they need to make a profit. At that point, a business owner’s best alternative is to just walk away. And it’s best to do so confidently. There’s no reason to drag out negotiations that won’t lead anywhere.

Most people have heard stories of negotiating with a used car salesman, with the buyer walking away, only for the salesman to say, “Wait! How about this number?” Sometimes, that scenario can happen in a business negotiation, too. If a business owner walks away confidently, they’ll either convince the other person to make concessions, or they’ll stop wasting time on fruitless negotiations.

Treat the other person with respect and dignity at all times.

A negotiation is a business agreement, so it needs to stay professional, not personal. That requires a salesperson to focus on being respectful at all times. Sometimes, negotiations that involve money can get a bit tense. If things are ever getting so tense that either party stops treating the other with respect and dignity, it might be best to hit pause and return to the negotiations later when everyone has had a chance to calm down. High tempers have ruined too many agreements that would have succeeded otherwise.

Ensure both sides are sure of what’s being negotiated before beginning.

At the beginning of any negotiation, it’s wise for a business owner to state clearly what’s on the table for discussion. This sounds so straightforward, but doing this upfront helps both negotiators save time; it keeps negotiations to the point. And more importantly, defining the goal of the negotiations helps both sides avoid unintentionally negotiating for terms they don’t need to discuss.

Don’t jump to negotiations too quickly.

Some customers will actually agree to a business owner’s sales terms right away without the need for negotiation. So if a business owner tries to start negotiating, they might actually make concessions they never needed to. A prudent entrepreneur will try to make their initial, ideal sale a few times before they start negotiating. They’ll also make sure that the prospect is actually interested in their product to begin with (sometimes called a buying signal). If the other person has rejected the initial sales offer more than once, but they’re still expressing interest, then it’s probably time to head to the negotiating table.

Don’t offer up negotiation options too quickly.

As covered earlier, every seller needs to know which things they’re willing to concede over the course of a negotiation. But they shouldn’t present those concessions too early on; they don’t want to give up too much too soon.

Many sales professionals find it’s best to start offering up their potential negotiating options after they’ve already deadlocked on price: they can’t lower the price any further, and the customer isn’t willing to pay any more than that. At that point, a prudent seller can start making offers like faster order processing, better post-order service, a better shipping option, and more.

Put the negotiated terms in writing right away.

Earlier, this guide warned against putting things in writing too quickly. But the reverse is also true: it’s wise to put things in writing as soon as both parties have agreed to the specific terms. Putting things in writing binds both parties to the agreement and helps reduce the risk that the other party will think better of what they’ve agreed to.

For example, suppose a business owner agrees to provide their client with 100 of their products every month, and they’ll get priority delivery on a specified date for a specific price. If they put that in writing, the buyer can’t come back the next day because they’ve decided they’d rather have 110 units at that price.

Celebrate privately.

Once a business owner is able to nail down a favorable agreement, it’s tempting for them to jump for joy or repeatedly say how excited they are. And, to be fair, it’s wise for a business owner to thank their client for their time and express their gratitude for the relationship they’ve just set up. But if they looked too eager, they might give their client the impression that they’ve taken advantage of them. That could jeopardize the long-term potential of the relationship.

Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. For specific questions about any of these topics, seek the counsel of a licensed professional.