Episode #456: Sonia Dumas

What determines value in your company? What should founders be asking themselves regarding pricing to determine value in their company? How do you know an effective negotiation strategy? On today’s episode, Paul Watts welcomes back Sonia Dumas. Sonia is a selling strategist, entrepreneur, and co-author of The Market Ownership Method: 7 Proven Principles and One Profitable Plan for Higher ROI Clients. Sonia has worked with industry giants like Intuit, Investopedia, Starwood, and Marriott, just to name a few. Today she will discuss experience-based negotiation strategies and effective negotiation tactics.

Outline of This Episode

• (0:00) Introduction to Sonia Dumas
• (1:15) The Difference Between Strategy and Tactics in Negotiation
• (4:45) Sonia’s Most Effective Negotiation Strategy
• (9:55) Planning for Successful Negotiations
• (11:30) Managing Complex Sales: Simplify
• (13:00) Counteracting Aggressive Negotiation Tactics
• (15:00) The Top Three Negotiation Dos and Dont’s

Understanding Strategy vs. Tactics

Sonia explains that strategy is like a roadmap to reach a specific destination, while tactics are the tools used to navigate that road. However, these elements only work if you have a clear vision of what you want to achieve. For example, growing revenue isn’t enough, it’s about keeping a profitable margin. When it comes to high-ticket sales, your goal should be maximizing profits, building prestige, and increasing the long-term value of your brand.

Sonia points out that many popular brand companies have mastered non-negotiable pricing as part of their strategic approach. This pricing policy reflects their brand value and positions them for sustainable growth. Sonia highlights how this shift toward non-negotiable pricing is becoming the standard of industry. Whether you’re a consultant, coach, or selling high-ticket items, we’re all moving toward a “checkout cart” model that eliminates traditional negotiations.

She encourages founders to step back and ask themselves, “How can I make my pricing non-negotiable as part of my strategy, moving prospects forward toward what they truly want?” This approach isn’t just about sales, it’s about creating a strategy that drives long-term value and success.

Sonia’s Top Negotiation Tactics

Sonia’s negotiation tactic boils down to three key points:

1. Situational Awareness: She emphasizes the importance of learning as much as possible about the situation and the people involved. Understanding the emotional state and mindset of decision-makers, are they confident or fearful? This helps her navigate the conversation effectively. Fearful founders may struggle with commitment, so recognizing this early is crucial.
2. Let the Prospect Talk: Sonia focuses on letting the prospect do most of the talking. This not only gives them confidence in their decision but also helps her gather valuable insights and adapt her approach based on what they share.
3. Compassion: She stresses the importance of being compassionate and understanding. By listening carefully and empathizing with the prospect’s challenges, Sonia is able to help them see a clearer path forward without getting caught up in their stress and uncertainty.

This approach ensures that negotiations feel collaborative and thoughtful, with a focus on building trust and understanding.

Sonia’s Most Effective Strategy

Sonia’s negotiation strategy centers around what she calls the “pain relief spectrum,” where she focuses on addressing the client’s pain points and reframing the conversation to alleviate that pain over a specific time frame, rather than engaging in price discussions right away.

Instead of discounting, she asks probing questions like, “How much is this problem costing you?” and explores phased solutions that are more manageable and cost-effective. She applies this concept to pricing by offering phased payment structures, with the price reflecting how quickly the client wants relief.

Sonia also emphasizes the importance of simplifying your approach. She advises having a clear, non-negotiable strategy that works 80% of the time, allowing for adjustments in more complex situations. The key is to know your own value and what you bring to the table, avoiding the confusion of too many strategies, and maintaining a consistent, confident approach during negotiations.

The Top 3 Dos and Don’ts of Negotiating

1. Know your non-negotiables – Be clear on what you’re not willing to budge on.
2. Listen more than you talk – Listen 10 times more than you speak to understand the prospect’s true needs.
3. Have compassion – Understand the prospect’s world, their challenges, and what they truly want to achieve.

Her don’ts include:

1. Don’t show up unprepared – Always do your research before engaging.
2. Don’t take things personally – It’s not about you; it’s about their situation and needs.
3. Don’t hesitate to protect your non-negotiables – Stand firm on what you value and what you’re offering.

Resources & People Mentioned

• The Market Ownership Method: 7 Proven Principles and One Profitable Plan for Higher ROI Clients

Connect with Sonia Dumas

• Sonia Dumas

Connect With Paul Watts

• LinkedIn
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