Negotiation is a critical skill for anyone and especially for salespeople. Although there's no single perfect approach, it's in your ability to effectively negotiate a deal through being able to read the situation and act accordingly than it is about talking a prospect into doing what you want them to do.
When buyers make a purchase it's natural for them to experience a phenomenon called an anchoring bias which is the tendency to focus heavily on the first price they see in the context of a sale. By understanding how anchoring can impact the decision-making process, salespeople can be better equipped to handle different challenging situations during a negotiation with potential customers.
How anchoring works
Don't dive in without your diving gear. It's important that you determine what information to share with prospects. Keep in mind that the first value they hear has a high likelihood to influence their decision, and after your initial conversations with the prospect you feel you can present a package that is financially feasible for them and profitable for you, you can get ahead of anchoring bias by presenting a mutually beneficial first offer.
Challenges of Anchoring in Negotiation
Anchoring can also create challenges in the negotiation process when there is misalignment between two parties on the value of the offer.
Conclusion
The more experience you have at negotiating the more comfortable you will be working through these scenarios. To hone in your negotiation skills, hop on a video call with a colleague and try an exercise together.
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