| p>Of all the sales negotiating tactics, the trade-off is | | | | approaches. Having parameters in mind will protect |
| used most often. Trading is the "heart and soul" | | | | you from being pressured by deadlines-artificial or |
| of negotiating, and, for that reason, it may be the | | | | real. You may also wish to use the subtactic of |
| most important tactic. Trade-off basically means | | | | negotiating the deadline itself, and postpone or delay |
| making an offer (issue) in return for the customer's | | | | it. |
| concession(s). It's a technique of give-and-take, | | | | Trial-Balloon Tactic |
| voluntarily substituting and bargaining one issue for | | | | Trial balloon is a method of presenting the customer |
| another. | | | | with options by prefacing your offer with the words |
| Here are some critical trade-off guidelines you should | | | | "what if . . . ?" You don't commit yourself, but you |
| use in your negotiating sessions: | | | | bring the item up for discussion and, at the same |
| 1) Avoid making concessions too early in the | | | | time, give the customer the first right of refusal. This |
| negotiation. When you begin too early, it gives the | | | | tactic enables you to constantly test the account, to |
| customer the impression that you will "give" and keep | | | | assess and read interests and positions each time |
| giving, and that will put you under pressure. | | | | you put up a trial balloon. Obviously, you have to |
| 2) Concede slowly when making trades. The reason | | | | listen to responses and use your other sales |
| is the same as above; conceding too quickly puts | | | | skills to evaluate each response. To employ this |
| you in a weak position and gives the customer a | | | | tactic effectively, avoid using it too often in a specific |
| psychological advantage. | | | | negotiation, and alternate your "what if...?" |
| 3) Concede in progressively diminishing increments. | | | | phrases with words like: "Suppose I could..." or "I'm |
| This is important because it enables you to move | | | | not sure that it can be done, but how would you |
| slowly in successively smaller steps toward a mutually | | | | react if we could... ?" |
| satisfying position or agreement. For example, if you | | | | An account manager for a major beer distributor |
| have to concede a discount of 2 percent on your | | | | supplies a classic example of the trial-balloon tactic. He |
| first offer, next you could possibly go to 3 percent, | | | | had been struggling for some time with one of his |
| and then to 3 1/2 percent, etc. | | | | large package store accounts to set up major |
| 4) Concede in small increments; beware of big jumps | | | | displays, but the customer insisted it couldn't be |
| that will encourage the customer to make big | | | | done during high-traffic hours. Unfortunately, the |
| requests. | | | | store was scheduled for delivery at the height of its |
| 5) Don't be the first to make a major concession, | | | | rush period. Finally, using the trial-balloon tactic, he |
| since this again gives the customer a psychological | | | | said, "What if I can get our delivery routing changed |
| advantage. On the other hand, you gain an | | | | to . . . ?" When the customer said yes, the account |
| advantage by being the first to make a minor | | | | manager convinced the routing manager to find a |
| concession-this indicates a positive, flexible attitude, a | | | | suitable window for delivery and got his permanent |
| willingness to bend and work with the account. | | | | display space. |
| 6) Finally, don't concede too much as a deadline | | | | |