There comes a time for any MSP business when a sales process ends up in negotiation. It is a set of circumstances that can strike fear into the bravest of sales staff, but with a little preparation, there is no reason why it shouldn’t go smoothly and finish with positive results. Try these tips and see if you can use them to arrive at the meeting with confidence and make a success of it:
Fake It ‘til You Make It
You may not be feeling as confident as you should be, but you have to come across as if you are. Confidence and power go hand in hand, and having power is essential to being in control of the negotiation process. With an air of confidence, it becomes easier to wait for the other party to begin speaking, which will give you an advantage as you can find out what they have to offer before you give away your position.
Negotiation isn’t about having it all your own way; it is all about give and take. If the sales process goes well you will be working alongside these people, so it helps to find out more about what makes them tick and what they want out of the negotiation. Then, you will be better placed to know the most important things to concentrate on during your discussions.
There will be a certain discount or added extras that your MSP business can and should offer during the negotiation. However, you should always have your baseline in mind before you go into the meeting. This enables you to stick to your limits and not be harassed into giving away more than you intend. The last thing you need is to be happy with the meeting, only to realize afterward that you will struggle to meet the terms. It can be beneficial to think of the negotiation in terms of a tennis match— see if you can agree on a reciprocal agreement that means you both get something out of the deal.
When it comes to negotiations in any part of your MSP business, planning and preparation will make all the difference. If you have already found out what the other party’s interests are and know what you are willing to offer as a bare minimum you will be in a greater negotiating position. If things are not going to plan and you are getting close to that minimum, be aware that you should always be prepared to walk away. Sometimes getting a sale is just not worth it, particularly if the margins have been eroded too much. Even if you have qualified your prospect and carried out your due diligence beforehand, it doesn’t always result in a sale. Hopefully, by following these tips, your negotiation will be successful— but knowing when to walk away is also a success as agreeing negative or unattainable terms will not have a favorable outcome.