Successful CEOs are happy with what they have and who they are.
That doesn't mean that they don't want to grow and prosper.
They just know the importance of being happy with what is taking
place in the here and now.
That may not seem like a trait for successful negotiation, but
it is. Envy saps energy and poisons relationships; admiration of
another's positive traits and accomplishments is a supreme
compliment that helps you focus on what you need to improve in your
life, your business, your relationships, your finances--and your
negotiating posture.
Sam Katz, CEO of Sam Katz Inc., says: "Don't try to be
a wise guy! Skip the typical sales spiel--which usually covers
something negative--and stay on-purpose." (Sam also points out
that we tend to play power games with people we envy, and he
advises against this: "Whenever you're in a negotiation
never, ever interrupt the person doing the talking." His
reasoning? Interrupting that sounds like interrupting looks like an
attempt to shift the power, control and authority away from the
other person and onto you. Not a good idea.)
Content Continues Below
6. Avoid the Other
Person's Problem(s)
This is a great (and simple) "negotiating tactic" that
more than one of the CEOs I interviewed for this book mentioned. It
is also one I've used regularly over three decades of
negotiating with CEOs and other high-level contacts.
This tactic is all about not inheriting someone's unresolved
problem as your own. If I had a dollar for every time I've
heard "We don't have that amount of money in our
budget," or "We don't have a budget," or
"Your price is too high," or "I don't have the
authority," or "We can't move forward right
now," or "We need this by no later than next
Monday," I'd be a millionaire. Look at all these typical
responses again, and you'll see that each is an attempt to put
the buyer's issues onto the seller's list of problems.
Instead of fighting the problem, putting it off until
"later on" in the negotiations or throwing a new one into
the mix, what would happen if you approached the problem from the
standpoint of finding a solution--of acting as a consultant with
the responsibility of finding an outcome that makes both sides
happy?
Keith McCumber, CEO of Daylite Systems Inc., urges you to
address of the issues whenever they come up. Prompt the issues, and
don't pick up any baggage that doesn't belong to you.
"Beware of any term or condition that is put off for later
discussion. When someone says, 'We can discuss this at a later
point--I don't see this condition as being a big problem,'
watch out!" This "insignificant" issue is very
likely the deal-breaker that will be rolled across the table when
time is running out for you, the seller (i.e., it's getting
close to the end of your quarter or fiscal year, or some other
important deadline is looming). CEOs and other effective
negotiators know that people tend to become much more flexible when
the time is running out.
Heed McCumber's warning. Don't wait until
"later." Deal with the issues now!
7. Do the CEO
Swagger
To think, sell and negotiate like a CEO, you must understand that
more than anyone in an organization, the CEO has the ultimate
walk-away power. The power to walk away is the most profound
negotiating tactic that a CEO will use. She/he basically says
"I am totally willing to pass on this opportunity." There
is a big difference in that thinking vs. "I am going to get
the price as low as I can before I buy." Walk-away power takes
the opportunity past the point of no return. The winning party will
convince the other party that they can and will walk away from the
relationship (buy or sell). Keep in mind that the goal here is not
to actually 'walk'; the goal is to get the other party to
do whatever the 'walking' party wants them to do.
Joe Mancuso, CEO of the CEO Club, points out there are two very
distinct ways to protect yourself against this tactic:
- Increase your options. If you're looking to contract
with a business consultant, make sure you've got at least one
other business consultant that you would hire. This way, when it
comes to "walking" on the first one, you've got a
backup.
- Make sure you don't give too much early on in the
selling or buying process. The point here is that "give
and take" makes much more sense than "give and give some
more." If you and the buyer/seller both invest in the
relationship, you're more likely not to run into the
"walk-away" tactic at the bottom of the ninth
inning.
8. Ask for the
Stars
Asking for more than is expected (moving beyond expectations) is a
great trait of the CEO. You'll be able to see this one coming
if you're a salesperson because you're already conditioned
to the "do whatever it takes to get the sale" mentality.
CEOs know this, too. Therefore, be prepared, and you may even want
to use this yourself when you're on the
"seller's" side of the table. By doing so, you'll
be modeling an important CEO negotiating trait.
Consider this about asking for more than is expected:
- It's one of the only ways to establish perceived value
beyond actual value. Example: ask your prospect CEO if they
would be willing to be used as a reference site as soon as they
receive their expected result or within three months, whichever
comes first.
- It gives a CEO room to "wiggle" later on.
She/he can always lower their expectations. Example: in the spirit
of "marketing mobility" (Chapter 13 of my book), ask your
prospect CEO to allow your products to be included in their
quarterly newsletter to their customer base.
- It tends to prevent "deadlocks" in negotiations
because it promotes free discussions of the most important issues
early on in the process. Example: Asking for payment upon
receipt of order in place of the "normal" net 30 will
help with your organization's net working capital and put the
pressure on the "buying" organization.
- Asking for more than is expected will almost always create a
feeling that the other person has won when the expectations are
lowered. Example: Giving net 30 in the above case will almost
always make the "buying" CEO happy, and you'll be
right where you need to be.
The next time you find yourself at the all important negotiating
table, keep your eyes peeled for one or more of the eight traits
that I've mentioned here. Until next month, Happy Selling!
Anthony Parinello is the author of the bestselling book Selling to VITO, the Very Important Top
Officer. For additional information on his speeches, Sales
Success Kits and newest book, CEOs who Sell, call (800) 777-VITO or
visit www.sellingtovito.com.
Page
1 | 2