Episode 140: Derek Arden

[00.59] Derek defines Negotiation – as when two or more parties can’t agree on something and they want to agree. Often lots of parties can be involved but to come to a mutually agreed win-win agreement.

[01.17] Derek explains how negotiation is important for business – because if you don’t have a win-win agreement, someone will pull out or will not be happy upon payment or like the terms of agreement. Which will result in the lack of a mutual long term relationship.

[01.56] Why don’t some salespeople don’t like to negotiate and what can we do to change this – Derek feels some sales people are not congruent and that they are working on sales target, which is more important to them as they work on short term bonuses rather than relationship management and listening to what clients want. Derek also feels that some sales people don’t know how to negotiate.

[02.52] How do you plan and execute a high stakes negotiation – Derek’s negotiation system win -win has a twelve step process. 1, preparation – research the client and situation. 2, ask high quality questions – the quality of the questions you ask determines the quality of the answers you receive. 3, listening – to what is being said and what is not being said. 4, first impressions – first impressions are acutely important, pay attention to details, i.e. handshake, position at table etc. 5, read body language – your body language, how you come across to your client and your client’s body language, does their body language confirm what they are saying. 6, lying – people lie in negotiations, you need to look out for when they are not telling the truth. 7, negotiating tactics – understanding the psychology of negotiating tactics. 8, influencing skills – understanding the psychology of influencing skills based on the work of Robert Cialdini. 9, negotiation – understanding the psychology, understanding where the other person’s perspective, having an alternative position. 10, haggling process, trading concessions, knowing the perception of value and the perception of price. 11, conflict management, how to over come conflict in negotiations and 12, confidence – you got to have confidence when negotiating.

[08.53] What are the attributes of a good sales negotiator – Derek talks about several attributes that a good sales negotiator has. A few of them being: understanding the goals what you are trying to achieve. Understanding where the customer is coming from and knowing that people don’t buy things they don’t want and will buy from a relationship person. Someone who listens carefully, builds rapport, and listens to the customer with high emotional intelligence is going to be much more effective in securing a win-win negotiation.

[10.59] Derek shares his top three negotiation Do’s and Don’ts – Do prepare, proper preparation prevents pretty poor performance. Do ask good questions, asking high quality open questions determines the quality of the answers you get and do listen and watch your customers body language when they are listening to what you are saying. If need be take some time to discuss the customers reaction with your colleagues and change your position or trade concessions if required. Number one don’t is don’t lie, people will know when you are lying and you will get found in the long term. Don’t forget to follow up, research proves that if you don’t know the customer beforehand, it will take up to five interactions at least to get a 50% chance of closing an important sale. Lastly don’t ever speak negatively of anyone, these things have a way of coming back and biting you in the bum, be a nice person and build trust.

[13.37] Derek shares his favourite negotiation story – a meeting that changed Derek’s life. Whilst Derek was working as an account director for a major bank in the UK, he was asked to secure a million pound contract with one of the UK’s biggest retailer. However, the retailer was only interested in a price reduction, he was not interested in the quality of service or delivery. Derek needed to sharpen up on his negotiation skills after studying he came back to the meeting but still unable to improve on price. The deal was not successful, sometimes it’s ok to walk away from a deal if it is not in the best interest of your company. But Derek learnt much more about negotiating from that meeting and benefited him with future negotiations and his career.

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More About Derek

What was the last book you read?
Win Win – How to get a winning result from Persuasive Negotiations. I have to keep reminding myself to read my own book!

Who / What inspires you?
WHO – Nido Qubein. Helping others learn and get better

What aspect of your own Social Media are you most focused on improving at the moment?
All of it. It is finding the time. I have a new website, linkedin is going really well. YouTube and Twitter.

Hobbies, Interests?
Soccer, cricket, walking, travelling to North America, golf and my family.

How can our listeners contact with you?
email me at action@derekarden .co.uk or message me on social media sites. My social media channels for any of my complimentary educational resources.