Nibbling (negotiating, not eating) from my friend, Steve Kraner

Savvy Buyer Gambit: Nibbling

What it is:

Nibbling is continuous chipping at your proposal over time, taking a little concession each time. It’s also referred to as ‘incremental negotiating.’

Why it works:
If the customer asks for concessions early, we may tend to think it’s a good idea to give concessions to build the relationship or as a ‘buying sign’ and a chance to close.

What’s the problem?:
Like chess or checkers, your earliest moves have the greatest impact on the outcome.

The savvy buyer may well not do all of their negotiating in one sitting. They will come back for more later. If you give it all away up front, and they come back a second time and now you’re in the ‘real negotiation,’ but you have no room left to maneuver.

A nibble at the end of a long ales cycle causes the seller to think, “Oh, no. I thought we had resolved everything. I don't want to take a chance on going back to the beginning and re-negotiating the whole thing. If I do that, I might lose the entire sale. Perhaps I'm better off just giving in on this little point."

Prevention:
Like my first Platoon Sergeant said, “Sir, I suggest you start tough and then ease off. You can’t do it the other way.”

In negotiations, you can’t expect to start by being submissive and then expect to become demanding.

It’s better to set the tone early that you are on the high end of the spectrum and that getting discounts isn’t easy. Then when you go to finalize it, their expectations are properly set. They’ll feel great when they get a little concession and they’ll appreciate it more than a big concession that they get with less effort. You may not be negotiating right up front, but you are positioning and setting the context that will impact the final negotiation significantly.

Every interaction you have with the customer, from the first meeting to the final negotiation, will impact the tone and context of the final negotiation.

Rule #1: No unilateral gifts.
I suggest that you adopt the habit of never giving anything away without getting something in return. Your hard work, time and attention are valuable resources. Demos, presentations and proposals all have value.

Also, consider this. When the customer asks for something like faster installation, we try to find a way to do it. That’s admirable and in the end it may well be exactly the right thing to do. It’s a problem though, if it results in unilateral concessions.

Rule #2: When they ask for something, find out why.
When they ask for something, listen and ask questions to uncover the underlying need. Use it to expand the scope of competition, increase the deal size and to do what the other guy can’t or won’t do. If you uniquely understand the customer’s situation, provide a unique solution and the customer sees you as a custom fit, you command a higher price. Find problems only you can fix. Probe for pain in areas where you have unique capabilities. Your leverage increases with the uniqueness of your solution.

There’s not much pressure in a one horse race (or a Russian presidential election.)

Good Selling!
Steve Kraner
skraner@hightechguru.com
http://www.hightechguru.com/
703-966-0192 (Mobile – preferred)

P.S. If you want to join Steve's email list, be sure to tell him "Missy sent me"!