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Sales are about relationships.

Yet many reps close the sale through a contentious, us vs. them negotiating process. This is the wrong way to go about it, and master agent Telarus (News - Alert) would like to help educate reps on the right way to nurture relationships and negotiate the sale.

The company has developed a five-part video series on how to double sales volume, and Part 3 of the series goes over good sales negotiating techniques.

The first thing to realize is the difference between strategy and tactics, according to XO Communications (News - Alert) regional sales manager, Steve Patterson. A strategy is a long-term plan for success, while a tactic is a plan or procedure for promoting a desired outcome or end.

“The strategy is the overall plan for achieving the goal,” noted Patterson, while “the tactics are the practical actions that we take in order to achieve the goal.”

It is important not to let tactics drive the negotiating process. A rep needs to keep the overall plan in mind, the big picture, while developing specific tactics to meet the negotiation goals.

The next important distinction to realize is that there are three possible outcomes: lose and win, which means somebody in the negotiations will lose; lose and lose, which means the sale is lost and the business doesn’t get the benefits of the rep’s solution; and win-win, which is where everybody comes away benefiting. This third option must be the goal, because losing is never good—and having the customer lose is a short-term gain at the cost of the long-term relationship.

Going into a negotiation, noted Patterson, it is important to know the competitive landscape so leverage is understood. Questions to answer include knowing the competition, knowing the competition’s strengths and weaknesses, and understanding why the customer should choose you over the competition.

Knowing the competition is not just important; so is knowing the party on the other side of the table. A rep needs to know the position of the person on the other side of the negotiating table, their role in the process, how they will benefit from the decision, the level of authority they possess, and if any one person has absolutely authority in the negotiating process. This will help the rep know how to interact with the person on the other side of the table.

With that background in mind, when it comes time to negotiate, Patterson advised not to stick to price alone in the negotiations and talk instead in terms of products, features and services. Knowing their price expectations also is important, and it is important to correct or complete their understanding of prices as necessary.

In terms of negotiations, only negotiate once there is a conditional agreement. This provides the framework for the negotiations. Also, don’t give away negotiating authority—never give something away without getting something in return. Giving away something without getting anything back is not negotiating, it is concession. Don’t do it.

The full video presentation by Steve Patterson can be viewed here, along with the other four parts of the series.