Negotiating: How can you send signals without saying a word?

Consider a typical two person negotiation: buying a house or buying a computer. Our experience shows most of these negotiations involve four major issues. For example, with a house: buy price, when to exchange money, size of deposit, what existing items in the house will be included. Or, when buying a new car: buy price, trade in value for existing car, length of warranty and what extras might be included (e.g. better audio system, rust proofing or special wheels). Whenever preparing for a negotiation we always advise you to use a planning sheet.

Focus on Growth_Now! [Part 2]

Companies are spending more time on how to compete in competitive markets using value. Four factors give best companies a competitive edge that drives growth:

Intimately manage your top 10 – 20 key clients.
Identify and manage your exceptional & strategic suppliers.
Focus on your unique value proposition for your market – your competitive edge.
Align throughout the company around the top 3 factors, always— allocating resources, developing talent & managing operating costs— for growth.

In an earlier blog, we explained the first two factors that drive growth. In this blog, we will expand on factors 3 and 4.

Discounting is not the answer: Compete with value

Today's customers are intently focused on getting the lowest price. With advances in technology customers can compare products and prices before they speak to you. Increased competition is making price pressure more intense, with a race to the lowest price being the easiest way to win the deal. But, at what cost to your company?

Account Management, Gary PeacockGary Peacock16 March 2018Price Pressure, Value, Competitive Advantage, CompetitionComment

Focus on Growth - Now!

By Stephen Kozicki & Gary Peacock

Over the past three years, the world has changed dramatically, and forever from digital disruption, Brexit and Trump. Your industry and your top clients are feeling the stress as their markets change, fast. These fast changes mean that your business needs to be more agile in response to the market. For companies unprepared for these changes this means lower revenue and lower profits.

Our blogs are usually short and punchy to grab your attention. This blog is a little longer than usual because delivering growth is just too important and too urgent to reduce the ideas down to a page, so we have split it into two parts.

To Grow – Act Now!

Why do you need to know what your customers really think of you?

Competition is increasing along with pressure on price, which can lead to a race to become the lowest price. However, discounting prices further to keep customers only prevents you from being competitive in the future because you have lower margins to invest.

With companies having fewer but larger customers it means that the top 10-20 customers for a company typically represent 60-80% of revenue and profit. Losing one of these customers can have dramatic impacts on a company - adding still further pressure to discount prices.

Stop Competing on Price, Start Competing on Value

To be blunt, for customers usually, there are not many significant differences between suppliers. Occasionally, you have a special product or service that no-one else has because it's protected by patent or special knowledge. Even then, the advantage lasts for a limited time. So, most of your time you compete with similar products and services.

So what?

Account Management, Gary PeacockGary Peacock25 January 2018Competition, Value, Price Pressure, Commoditisation, PriceComment

Reduce Price Pressure: Focus on Value

Companies are increasingly finding that their traditional value proposition is falling short. The strength of their brand has less value in the buying process, and competition is intensifying from well-resource established players and emerging niche players. Pressure to reduce prices is now the norm. So, margins are deteriorating and profits are shrinking.

How can you stop this?

What are the barriers to organisational change?

The first barrier to change is most people don't like change. They tend to stick to what they know and what worked before. However, change is happening: like it or not.

Pitch to win: picture the competition

You must pitch for some business. Where do you start? Most managers answer this question correctly: with the customer and what they want. However most managers get the answer to the next question wrong: What should you do next?

What is the correct answer?

How can you become a successful negotiator? (Part 2 - Outcomes of negotiation)

In a previous blog we looked at the types of negotiation, but it is equally important to choose your outcomes before you begin negotiating. Let's take a look at the different outcomes.

Are transactional accounts bad?

Many companies discover their largest accounts are transactional. They generate high revenues; however, place minimal value on the relationship and minimal value on your company's products and services. They are not interested in developing a strategic relationship with your executive team and if they do it is only to discuss getting reduced prices.

So, how should you best handle these accounts?

Market Trends Impacting B2B Business Negotiations

There are a few relentless market trends impacting how B2B companies do business. These market trends are long-term and impact the top and bottom lines of B2B companies around the world.

1. Customer Consolidation

2. Centralisation of Decision Making

3. Different Decision Makers

4. Increasing Competition

All of these market trends are making it harder to keep, win and grow customers profitably. What does this mean for your organisation?

Negotiating: How to Resist Price Pressure

One of the most common problems people selling complain about is pressure to reduce their prices. There are several ways to prevent price pressure. In this blog we will discuss how to resist price pressure when negotiating.

Negotiation, Gary PeacockGary Peacock10 February 2016Price Pressure, Negotiation, Variables, Best Price Comment

Negotiating: Have you missed the bus? [Identify Business Priorities]

When consulting on the toughest negotiations, we often see our client has missed the bus. Have you missed the bus: do you know the other parties’ problems and business priorities? ...

Change your organisation faster: you are not changing fast enough

In the health industry (medical products and pharmaceutical) we see procurement continuing to put pressure on prices. Why? ...