What are the basics of commercial negotiation?

What is commercial negotiation? How to prepare the negotiation? How to succeed in a negotiation while creating a good customer relationship? Discover our complete guide.

What is commercial negotiation?

Commercial negotiation is a communication process aimed at reaching a commercial agreement. This process involves the confrontation of the negotiators' expectations, interests, positions and points of view. There are two forms of commercial negotiation:

• Short sales cycle negotiation: the commercial offer is simple and it is possible to conclude the sale at the first contact.
• Long sales cycle negotiation: the offer is aimed at large accounts (public authorities and companies). Several meetings with different interlocutors are necessary to reach an agreement. The negotiation phases are quite long and sometimes include a call for tenders.

Commercial Negotiation Training

Preparing for a commercial negotiation

It is important to prepare well for a successful sales negotiation. To do this, it is essential to ask yourself the right questions in order to build a solid and effective sales argument:

• What criteria will the negotiation focus on? Price? Quantity? Delivery times? The characteristics of the product or service?
• What concessions can be made?
• What quid pro quo should be sought in exchange for these concessions?
• What concessions is the prospect prepared to make?

What are the stages of a commercial negotiation?

There are several stages in a commercial negotiation:

1. Making contact: this is when you meet the potential customer. We recommend that you first consult your customer database to find out who your prospect is and to create a fruitful professional relationship. Making contact is not only about introducing yourself, but also about explaining the issues involved in the sale and demonstrating your expertise. First impressions count for a lot in the business world.
2. Analysis of the customer's needs: taking an interest in your customer and his or her real needs is essential to making a relevant sales offer. Ask yourself what their needs are, what they want and what might be holding them back from buying. Finally, ask yourself what your product can offer them that the competition cannot. The aim of this phase is to identify the catalysts for the purchase decision. Use the SONCAS or QQOQCP method to understand your interviewer's buying motivations if necessary.
3. The sales pitch: you have drawn up your customer portrait (persona or avatar) and aligned it with your potential customer. Now it's time to create your sales pitch. If your first meeting with your prospect took place some time ago, remember to remind yourself of the points raised beforehand. Then present your offer in summary form, then propose your solutions by going into technical detail. Have the customer validate your proposal regularly by asking if everything is clear to them and if they are satisfied. Do not hesitate to invite them to ask questions.
4. Rephrasing the objectives: listen actively during the questioning phase and rephrase any objections your client may have so that you can respond to them as best you can.
5. The negotiation phase: present the price of the offer and defend it using commercial techniques. The aim is to avoid having to make concessions. To do this, remember to argue. If it is necessary to negotiate and make concessions, try to find a win-win agreement.
6. Closing the sale: this is the end of the sale, the saying goodbye.
7. Maintaining the business relationship: a prospect who is satisfied with your services is likely to place another order with you and recommend you to his or her contacts. So remember to keep your customers loyal.

Commercial Negotiation Training

How to succeed in a commercial negotiation?

You now know the steps of a good negotiation. Now let's look at the keys to a successful business negotiation to put all the chances on your side:

• Do not devalue your offer. It is a trap to make a low offer at the outset. Start by making a high offer so that you have a comfortable margin of manoeuvre. This negotiation strategy allows you to anticipate possible requests for a lower price and to preserve your margin.
• Do not give in to requests for too many concessions, especially if there is no counterpart. Ideally, deal with objections and conduct your negotiation in such a way that you do not have to make any concessions at all.
• Always ask for well thought-out quid pro quos before the meeting.
• Keep control of the negotiation: structuring your speech is essential, as is active listening and being responsive. Be aware of the fears and misgivings of your interviewer.

Take a commercial negotiation course to develop your skills

You have understood: conducting a negotiation and succeeding in negotiations cannot be improvised. You have to be able to anticipate the buyer's behaviour, master sales and negotiation techniques and know how to behave in a negotiation situation. Don't panic: there are both long and short courses to learn how to conduct a negotiation with a master's touch. Our courses for students, such as the master's degree in sales strategy, enable you to learn to master all the techniques of negotiation from A to Z (drawing up a customer portrait, role-playing, effective negotiation, calculating margins, conducting a sales meeting, avoiding classic pitfalls, learning the different sales techniques, etc.). This course covers various tactics and aims to make you a fine negotiator. The commercial negotiation course, on the other hand, is aimed more at professionals in the course of their activity who wish to negotiate effectively or launch the commercial development of their company.

Now you know how to become a good negotiator. Which course will you choose?

Master in business strategy

short courses