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How to improve your sales negotiation process

  • When we think of sales negotiations, we usually picture ourselves making big agreements and discussing contract terms, ideas, and salary payments. And, of course, there is a lot more at stake in this type of conversation.

Companies must therefore expand their negotiation strategies for sales. For the simple reason that you don't want to lose customers just because a salesperson fails in the negotiation phase.

In this article, we'll discuss how sales negotiations fit into your sales process and discuss the proven strategies, best practices, and skills you need to always achieve a mutually beneficial outcome.

What is Sales Negotiation?

Sales negotiation is the process of interacting and negotiating with a customer to reach an agreement on the price, terms, and terms of a sales transaction. This brings both parties together to reach a mutual understanding so that they can continue with the sales process.

Why is the Sales Negotiation Process So Important?

Sales negotiations are incredibly important because they often decide whether or not a sale is made. Ensuring that your sales negotiations are well conducted can play a big role in achieving sales excellence. Successful sales negotiations not only increase your turnover, but also create better relationships with customers by creating trust and openness throughout the sales process.

The 5 Phases of the Sales Negotiation Process

The process of negotiating sales usually involves five stages:

Phase 1: Research and preparation

Although it is easy to overlook, preparation for negotiations is an essential first step in the negotiation process. Research both sides of the argument, note down potential trade-offs, and determine which results you prefer and which you prefer the least to prepare. Next, make a list of the concessions you're willing to offer, identify the decision makers in your organization, decide whether you want to establish or maintain a relationship with the other party, and create your BATNA (best alternative to a negotiated agreement).

Defining the ground rules, i.e. deciding where, when, who and within what time limits negotiations should take place, can also be regarded as preparation.

Phase 2: Inform one another

Here, the parties exchange their starting positions for the negotiation. Each side should have continuous opportunities to express their most important concerns and interests and to explain what they hope to gain from the negotiation and how they base their positions.

Stage 3: Clarification

Both parties are continuing the conversation they started during the exchange of information by defending and supporting their allegations during the clarification phase. If one side disagrees with a statement from the other side, they should calmly discuss it in order to reach an agreement.

In this phase, the salesperson will typically ask a series of questions to gain a better understanding of the customer's needs and requirements and to identify potential issues or concerns that may need to be resolved. The customer also has the opportunity to ask questions and raise their concerns.

Both sides also discuss key elements of the deal, such as price, payment terms, delivery, guarantees, etc. This phase should enable both sides to develop a mutual understanding of the proposal and identify any areas that require further discussion.

Phase 4: Negotiate and find solutions

The negotiation process only really starts when both parties start making concessions. After the initial offer was made, each negotiating party should make a series of counteroffers to resolve the issue while managing their compromises. Keep your emotions in check during the negotiation; the most successful negotiators have excellent verbal communication skills (active listening and calm feedback; this includes body language in personal negotiations). The aim of this phase is to find a win-win solution or a constructive approach.

Phase 5: Completion and implementation

Regardless of the outcome of the negotiations, both parties should thank each other for the discussion as soon as an acceptable solution has been found. Successful negotiations are about building and maintaining strong long-term relationships. They should then clarify what each party can expect and ensure that the compromise is successfully implemented. A written contract and follow-up to ensure that implementation is going well are often part of this step.

The Best Practices To Improve Your Sales Negotiations

Let's take a look at some strategies to improve and optimize your sales negotiation process:

  1. Practice your sales pitch: Good preparation is essential for successful sales negotiations. Practice your sales pitch several times so that you come across as self-confident and compelling when you present it to the customer. In general, there are multiple ways for your sales team to practice. The most common method is to role-play with other members of the sales team. This allows your sales representatives to experience a simulated sales situation and practice their sales pitch in a safe and controlled environment.
  2. Set an agenda: Before the start of sales negotiations, it is important to set an agenda so that both parties know what is expected during the interview. This includes a list of topics to discuss and setting time limits for each topic.
  3. Listen carefully: Be attentive during sales negotiations so that you can listen to all advice and feedback from the customer. It is important to understand the customer's position and needs so that you can negotiate a deal effectively.
  4. Be flexible: When negotiating sales, be open-minded and prepared to make changes as necessary to meet the customer's needs or expectations. If you're flexible, you're in a much better position to build trust and establish a relationship with the customer, which can increase the chances of a successful sale.
  5. Respect their position: A high degree of flexibility also includes respecting the customer's position and understanding their wishes and needs as well as their limits. In this way, you are much more likely to create an atmosphere of collaboration and partnership than confrontation. Draw a joint action plan Considering which is often the best solution to achieve just that
  6. Stay calm: When sales negotiations get heated, it's important to stay calm and professional; don't let emotions cloud your judgment or derail the process.
  7. Use negotiation tactics in sales: That's where sales negotiation tactics come in! Successful negotiators use classic negotiation tactics, such as incentives or discounts for bulk purchases. You can also use psychological sales techniques, such as anchoring (setting an arbitrary starting point) or creating a false sense of urgency.
  8. Know when to give up: As a sales representative, it's important to stay tough and know when to give up if negotiations don't go as you wish. Don't make unnecessary concessions just to close the deal. Instead, focus on what's best for both parties over the long term.

By following these best practices, you can effectively improve and optimize your sales negotiation process to achieve successful sales transactions and strengthen customer relationships.


Sales negotiations are an important part of the sales process that requires skill, preparation, and communication. To improve and optimize your sales negotiation process, you must be prepared to set goals, establish yourself as an authority person in the sales pitch, talk openly with customers about problems, remain willing to compromise, and follow up with customers after sales negotiations have been completed. By following these tips, you can improve your sales performance while building better relationships with your customers.

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