Is negotiation the answer? Socrates and Plato roamed Athens nearly 2,500 years ago trying to figure out the most thought-provoking and stimulating questions to ask in order to develop new philosophies that would transcend time. Perhaps Albert Einstein (1879-1955) said it more succinctly: “It is important to not stop questioning.” While questions have been the tools of the trade used for centuries by the world’s greatest thinkers, questioning remains the salesperson’s most-used and most-coveted tool to persuade or to get someone to think differently. In today’s times, this ability to use questions to persuade is viewed as “selling” by the sales field. Well, if selling is persuading, what is negotiating? This is a particularly troublesome question—and with good reason. There tends to be a blur between selling and negotiating. Some programs that are labeled “negotiation” tend to include more selling than negotiating. Why? Negotiation is probably a more marketable term. It even sounds more intriguing and important.  There may be another reason for the blurring of the terms. Negotiation doesn’t seem to integrate into many sales training programs smoothly, easily and clearly. In other words, there doesn’t seem to be a common link or any continuity between the two tools. This often leaves salespeople and their managers wondering where one ends and the other begins. After examining many sales training and negotiation programs, it appears there should be a strong delineation between the two. Yes, both are persuasion methods. However, in selling, one tends to use only words to get the other person to think differently, whereas in negotiation the persuading occurs by making specific changes in terms, conditions or price. So, is there significance to this difference? Yes. The preceding definitions strongly suggest that negotiating is not desirable because one is giving something up. Terms and conditions are being changed from their normal and regular intention. One of the two parties is gaining specific concessions from the other. Put another way, one should strongly ask if negotiation is being used as a substitute for effective selling skills. There is a tendency on the part of salespeople to lower their price to make the sale. But, in a tough economy, don’t we need to lower price? Answer: less often than you think. Let’s examine an interesting research study. Several years ago, an East Coast sales-research firm conducted a field study of 50 decision-makers who had told the salesperson the reason they did not buy was price. The research group visited each of these decision-makers and asked them if they indeed had told the salesperson the reason for not buying was price. In every case, the decision-makers replied affirmatively. However, when each was asked if price was the only reason for not buying, nearly two-thirds said it was not. So, only one-third of the time that price was indicated as the reason for not buying was it, in fact, completely true. Customers revert to price when value is not sold.  It is logical to conclude that two-thirds of the time a salesperson enters into negotiations, he or she runs the risk of solving the wrong problem; the real problem is ineffective selling, not failure to negotiate. And, from this conclusion, one could make the logical thought-link that negotiation is the last thing a salesperson wants to do in the sales cycle.  So the salesperson should identify whether he or she is confronted with a selling or a negotiation situation. How does the salesperson determine this distinction? Here are a couple of questions: “Is price (or some other specific term or condition such as delivery time, payment terms, rates, fees) the only thing preventing us from working together? If we were able to work through this price issue, would we being doing business together?” Before you or your company invests money and time in a negotiation program, you may want to determine whether you are solving the right problem. Embarking upon negotiation training when lack of selling skills is the culprit will result in lower profit margins. After 2,500 years, Socrates might be amused that today’s top-performing salespeople are still using questions to persuade rather than immediately lowering price to negotiate. Canada can be reached by e-mail at rcanada@dartmouthgroup.com. Quote: … one should strongly ask if negotiation is being used as a substitute for effective selling skills. back to article listings