Startups are busy addressing multiple tasks. They need to ensure that supplies are fully stocked and that the shop is ready to open on the anticipated day, among other things. However, they also need to ensure that their sales team has a strong set of negotiation skills. Here are 6 reasons your startup needs negotiation skills training, along with tips to help you reach higher levels of success in negotiations.
Preparation for Negotiation
Sitting down with the team now is imperative because you want to be prepared for negotiations. One of the reasons you need training is because people will want to negotiate, and you need to know how to address their needs. The idea is that you do want to provide some level of flexibility, but your company also cannot start virtually giving away products for free. To avoid that, create stipulations that all employees must follow. Training will teach you how to set guidelines so that employees will know how far to venture into the negotiations.
The Right Timing
Training also teaches your team when the right time is to pursue certain steps of the negotiation method, especially when it comes to how to negotiate a contract. For example, understanding that people usually start to negotiate when the contract comes out is key. Employees should not wait until after that point to start telling the customers about all of the benefits the product has to offer. Also, your staff members should not be the first ones who bring up possible negotiations and price reductions. Waiting for customers to do so gives the business more control of the situation. While many customers will ask for some sort of reduction, not all of them will.
One major problem that people on both sides of the table have with negotiation is their lack of confidence. They let the other party take complete control of the situation, and they feel as though they have gained nothing from it. Training helps to build up confidence. For example, if during the meeting, a guideline is established that a certain product can sell for no less than 20 percent of its ticket price, the employees have that figure to rely on. They know what the company guideline is, so when they get to that figure at the negotiations table, they also know that the company is behind them in saying no to further price reductions.
Some may think that the word negotiation is just a gentle way of saying argument. As a result, employees and customers alike can become flustered because they feel they are in a combative situation with one another. Building customer loyalty is quite important, and if customers feel attacked, that is unlikely to happen. Therefore, training is needed because it helps to teach employees how to maintain that sense of rapport while not giving away products for free. Part of that knowledge will come with practice, but staff members also need to hear the theories and methods behind it.
Knowing the Language and Tools of Negotiations
Having a training session is like attending a class. Sometimes, people already know how to put the practices of the class into play, but they do not know why they are using that particular skill set. They may also not recognize how to make the best out of it. During a training session, employees learn the language and tools of negotiation, such as supplier relationship management tools, that can help them to expedite the process and create strong connections with the customers. Also, they can begin to learn how to speak in negotiations. For example, they might ask questions that do not require a commitment. They can ask if people are willing to sign the agreement if a particular concession is made. Also, they can learn the proper time to introduce new stipulations to the agreement.
When to Ask for Help
Constantly running to supervisors is not going to display a high level of professionalism. However, employees should also know that support is available when the negotiations become too much for them to handle. During training, employees can learn about when the right time is to say that a supervisor or manager needs to be consulted. Through negotiation skills training, staff members should gain the ability to perform a great deal of these tasks by themselves, but at times, they will need assistance.
Training for negotiation skills is imperative for start-up businesses because customers will ask for discounts, and team members must know how to address these requests.
Riya Sander is now working in a position of marketing supervisor. She holds a bachelor’s of Business Administration(Marketing). She is also a freelance writer for several companies including Real Estate Academy Australia, a specialized training centre for the real estate industry. Apart from her marketing expertise, she always enjoys reading, cooking, pocketbooks and playing with her cat on weekends.