how to evaluate your sales team

if you can't measure it, then you are not serious about it!

this is a fundamental rule of the master marketer. with that in mind, the
following test will help you determine where your sales team needs attention.
answer all the questions, then score them according to the instructions at the end
of the test.

1) our salespeople have more sales leads than they are able to respond to.
o yes o no

2) our sales team includes both field and telephone salespeople.

o yes o no

3) we have a specific sales process and our salespeople understand and use it.
o yes o no

4) our salespeople are trained in sales presentation methods and use them.
o yes o no

5) we have a formal sales training program to develop product and industry

knowledge, as well as selling skills.
o yes o no

6) we have a formal program for reporting sales activity.

o yes o no

7) our salespeople know how they are being measured in areas other than revenue.
o yes o no

8) we conduct regular in-field coaching sessions on an individual basis with each

of our salespeople.
o yes o no

9) we have a formal program in place to develop our salespeople's skills.

o yes o no

10) our sales compensation plan promotes the desired product mix by rewarding good
results and penalizing poor results.
o yes o no

11) we regularly communicate product and industry update information to the

members of our sales team.
o yes o no

12) our salespeople provide regular product and industry feedback in writing or in
formal verbal feedback sessions.
o yes o no

13) our product is being represented in the best possible manner by our
salespeople.
o yes o no

14) our salespeople report on sales or customers that we lost and tell us why.
o yes o no

15) our salespeople have a program to contact accounts that should be buying, but
are not.
o yes o no

16) we all know who these accounts are.

o yes o no

17) our company has a formal program to prescribe, help and set minimum
requirements for acceptable levels of sales performance.
o yes o no

18) our salespeople are satisfied with their territories.

o yes o no

19) our sales team maintains the best use of its time.
o yes o no

20) our sales team uses computers and contact management software.
o yes o no

21) we receive negative feedback from customers and prospects through our
salespeople.
o yes o no

22) our price is seldom an issue to buyers.

o yes o no

23) we experience few customer satisfaction complaints.

o yes o no

24) we experience low competitive pressure.

o yes o no

25) we conduct regular customer satisfaction surveys.

o yes o no

scoring: give every yes answer two points and every no answer zero. add up your
score.

if you scored between 38 and 50, your sales efforts are on the right track. look
at your no answers and concentrate on improving those areas.

if you scored between 25 and 37, your sales efforts are on par with most, but you
could really benefit by addressing the weak areas shown in your no answers.

if you scored below 25, take a comprehensive look at your sales team and systems
to improve overall sales. once you have isolated your weak areas, you should focus
on defining a clear job expectations agreement with each member of your sales
team. as an example, this agreement might look something like the following
document.

sample job expectations

1) sales appointments

appointments per day: 6 to 8

prospect calls per week: 10 to 15

service calls per week: 20 to 25

2) annual sales volume

less than $25,000 -- call every 6-8 weeks

$25,000 - $100,000 -- call every 4 weeks

over $100,000 -- call every 2-3 weeks

based on the distribution of your accounts by annual sales volume, the following
guidelines should assist you in effectively covering your territory while meeting
the requirements explained above.

a) itineraries, daily call reports and sales reports should be filled out in full
and submitted to the office by monday noon.

b) correspondence, including requests for quotations and literature should be

handled by salespeople whenever possible. a file copy of all correspondence should
be left with the sales manager. you in turn will receive a copy of all inside work
affecting your accounts.

c) weekly expense accounts should be submitted along with your reports covering
that period of time.

d) arrangements should be made with the office so you can be contacted five days a
week if necessary. this can be accomplished by adhering to your weekly schedule
and/or calling in daily.

e) to complete reports, handle correspondence, pick up leads, etc. you should plan
on being in the office an average of a half day per week.

your performance will be reviewed twice a year, in january and in july, with
respect to a) ability to retain business, (b) number of new accounts, (c) increase
in sales volume, (d) following up leads, and (e) meeting the requirements outlined
above. this review will play a major role in determining adjustments in salary and
distribution of accounts and territories.

copyright 2001-2007 biztrek international, inc. and gil gerretsen

may be republished in full with proper credit to biztrek and the author

the small business knowledge base home page

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small business government grants (small business grants)

small business marketing:
how to measure sales force performance

source: managing a small business

owner-managers have the problem of motivating and measuring the performance of
each of their sales representatives. their tasks are complicated because of the
many criteria that can be used.

this guide presents a method that is workable and effective. it discusses the
development of yardsticks that will allow a sales representative's performance to
be measured in numbers that are profit-orientated.

some owner-managers find it difficult to motivate and measure the performance of

sales representatives because representatives vary, customers vary, and business
conditions vary. this guide is a conversation between a consultant who specializes
in sales representative incentives (c) and an owner-manager (m). as their
discussion opens, the consultant is pointing out:

c: fortunately, your competitors face the same variables you face. but tell me,
why do you want to measure the performance of your sales force?

m: i heard recently that industrial sales can average as much as $175 a visit. i
don't want to spend that kind of money unless it's a good investment.

the measurement problem

c: here's a list that i call "sound criteria for measuring performance"

sound criteria for measuring performance?

which of the following are sound criteria for measuring the performance of sales
representatives?

1. volume of sales in dollars.

2. amount of time spent in office.

3. personal appearance: for example, clothes, hair, cleanliness, and neatness.

4. number of calls made on existing accounts.

5. number of new accounts opened.

6. completeness and accuracy of sales orders.

7. promptness in submitting reports.

8. dollars spent in entertaining customers.

9. extent to which the sales representative sells the company.

10. accuracy in quoting prices and deliveries to customers.

11. knowledge of the business.

12. planning and routing of calls.

m: from the question mark at the end of the title i gather that not all of the 12
are sound criteria?

c: right. first let's look at some of the common errors that owner-managers make
in measuring the performance of their sales representatives.
m: i'm willing to listen.

c: you probably aren't. usually owner-managers make one of the five following
errors: they evaluate their sales representatives primarily on the basis of sales
volume. they rely too much on the number of sales call made by each of their sales
representatives. they compare each sales representative's present sales results
with past sales for a corresponding period - for instance, may of the current year
against may of last year. they expect their sales representatives to follow
explicitly the selling methods that worked for them when they were selling. or
they give their sales representatives too much freedom.

m: that's interesting, but not clear. what do you mean? would you explain each
point? for example, what's wrong with evaluating my sales force in term of their
sales volume?

c: usually, sales volume by itself won't tell you how much profit or loss you're
making on each sales representative. unless you know this fact, a sales
representative can cost you money without your realizing it. for example, one
small manufacturer was losing money until he analyzed the profitability of the
sales volume brought in by each member of the sales force. he found that one of
them created a loss on almost every order. this representative was concentrating
on a market that had to become so competitive that markups had to be drastically
reduced to make sales.

m: assume that i have an adequate markup on my sales. isn't performance then

largely a matter of how many calls each of my sales representatives makes to get
the business?

c: of course making calls on customers and prospects is important, but a sales

representative should make calls on accounts in relation to their sales and profit
potential.

m: it sounds to me as though you're questioning if sales representatives should

get in the habit of making regular call on their accounts.

c: if your sales force is more responsible for servicing their accounts than
selling their accounts, than a regular routine of calls may be okay. but paying
sales representatives to do routine pick-up and delivery, for example, can be
expensive.

m: how about comparing a sales representative's current performance with the past?

c: that can be very misleading, some months have more working days than others.
changes in products, prices, competition, and assignments make comparisons with
the past unfair, sometimes to the sales representative, sometimes to you. it's
much better to measure cumulative progress - quarterly, semi-annual, or annual
results - toward goals.

m: why not evaluate a sales representative's selling methods?

c: you should if a sales representative violates company policy or doesn't

accomplish goals. but why criticize a sales representative for spending too much
time in the office if that brings in profitable orders by telephone or by mail?

m: i suppose owner-managers who've had sales experience themselves expect their

sales representatives to use the same selling methods that worked for them - even
if they don't realize it.
c: it's natural that they would. but it's often unfortunate. market conditions
change or the sales representative faces different problems. i know of one good
sales representative who's basically an introvert - avoids socializing whenever
possible. this rep's boss is an extrovert and can't understand this.

m: what about owner-managers without sales experience? do they face any special
problems in measuring the performance of their sales forces?

c: they surely do. they often give their sales representatives too much freedom.
their knowledge of selling is limited. often they don't know what they should
really expect from their sales representatives.

yardsticks for measurement

m: okay, now i understand what you meant by the five errors which owner-managers
make. but i'm confused about the so-called criteria in your exhibit 1. are any of
them usable for measuring the performance of sales representatives?

c: yes: some of them are excellent. the trick is to use the yardsticks that can be
expressed in numbers. the best one in exhibit 1 are items 1, 4, 5, and 8.

m: i can see that item 1, "volume in sales dollars," item 4, "number of calls made
on existing accounts," can be expressed in numbers.

c: right. and also item 5, "number of new accounts opened," and item 8, "dollars
spent in entertaining customers". all four of these items are especially good when
they are accompanied with target dates such as month-end, quarter-end, or year-
end.

m: this is beginning to look good to me.

c: fine. but i believe there are better criteria than those we've been talking
about.

m: i'd like to hear about them. but first, what about the other items shown in
exhibit 1?

c: the other items can affect a sales representative's performance. that means you
may have to make judgments in these areas. i would hope your judgment would be
made after you give the most weight to the items that can be measured in
numbers...

planning, measuring, and correcting

... but there's more to sales performance than merely compiling sales figures.

m: what else is there to do after performance has been measured?

c: actually, the answer to that question is planning for better performance in the
future and correcting past performance with which you are not satisfied. you do
this by finding out what profit contribution each sales representative makes.

m: but what do you mean by profit contribution?

c: oh. i'm about to get ahead of myself. first, let's look at this guide for
planning, measuring and correcting a sales representative's performance.
guide for improving a sales representative's performance

one goal of measuring a sales representative's performance is improvement

assistance. the three steps in bringing about improvement when it's needed are:
planning, measuring, and correcting.

planning

get the sales representative's agreement about goals to attain or exceed for the
next year:

(1) total profit contribution in dollars.

(2) profit contribution in dollars for:

each major profit line.

each major market (by industry or geographical area).

each of 10-20 target accounts (for significant new and additional business.)

get the sales representative's agreement about expenses to stay within for the
next year:

(1) total sales budget in dollars.

(2) budget in dollars for: travel, customer entertainment, telephone, and other
expenses.

measuring

review at least monthly the sales representative's record for:

(1) year-to-date progress toward 12-month profit contribution goals.

(2) year-to-date budget compliance.

correcting

meet with a sales representative if his or her record is 10 percent or more off
target. review the number of calls made on each significant account plus what he
or she feels are his or her problems and accomplishments. in addition, you may
need to do some of the following to help improve performance:

* give more day-to-day help and direction.

* accompany on calls to provide coaching.
* conduct regular meetings on subjects that representatives want covered.
* increase sales promotion activities.
* transfer accounts to other sales representatives if there is insufficient
effort or progress.
* establish tighter control over price variance allowed.
* increase or reduce selling prices.
* add new products or services.
* increase financial incentives.
* transfer, replace, or discharge.

m: it looks good. i like the breakdown into three sections.

c: right. but to answer your question about profit contribution - it's a term i
use to designate what's left in the sales dollar after you subtract direct costs
and a sales representative's controllable costs.

m: markup?

c: yes, but the important thing is to keep your eye on what the sales
representative does to it. suppose, for example, that one of your sales
representatives makes a $1,000 sale. if your direct material and direct labor
total $600, you would give him or her credit for a $400 contribution to profit.

m: if i allow my sales representatives to cut the price, and they cut it each sale
by $50, they would contribute only $350 per sale to profit - toward my overhead,
selling expense, and so on.

c: that's right. additional costs such as price cuts, nonreimbursed overtime or

makeovers caused by them, claims or credits due to their errors, and their
expenses over what you'd budget for - any of these reduce their profit
contribution.

m: that looks like a good way to get owner-managers to think in terms of the
dollars their sales representatives bring in to cover overhead and profit. of
course, i don't necessarily have to let my sales force know what my direct costs
are. but i do have to urge them to sell products with high profit margins. or if
they're selling products with low profit margins, they have to bring in big
volume.

c: that's the idea. incidentally, you don't have to have 100 percent accuracy on
your direct costs for each product or product line. you can use standard estimates
or annual estimates, as long as your sales representatives know what figures or
numbers you're basing your performance evaluations on.

m: the product line a might have a profit contribution credit of 40 percent of the
sales dollar; profit line b, a contribution of 25 percent; and profit line c, a
contribution of 10 percent. again, this is aside from any sales representative's
controllable costs.

c: that's correct.

m: i believe the sales budget items in your "guide for improving sales
representative's performance" (exhibit 2) are self-explanatory. so my next
question is: how can a sales representatives plan the number of calls that should
be made on accounts?

c: that's largely a matter of arithmetic. after all, there are only so many calls
a sales representative can make in a year. depending on selling style, one sales
representative might average 4 calls a day, another 6, and another 8. say you have
a sales representative who averages 6 and who is free to make calls on 200 working
days a year - that's 1200 potential calls. the representative can allocate these
calls among accounts in terms of the number of calls he or she feels in necessary
and affordable to generate the business desired.

m: how should the sales representative keep track of the number of calls made on
accounts?

c: one way is to have each sales representative turn in a regular report on calls
made. another way is to leave it up to each of them to record dates of calls on
account cards.
m: i prefer the second way. my sales force knows i wouldn't have the time to read
all the reports every week. furthermore to find out what my sales force is really
doing takes an account-by-account review with each one. in the "measuring" section
of your "guide" (exhibit 2), why don't you use weekly figures instead of year-to-
date volume?

c: you can have weekly figures if you want them. but year-to-date figures average
out the very good or the very bad periods. with them, you're better able to see
how each sales representative is progressing toward annual goals.

m: the measuring job looks fairly simple when each sales representative has profit
contribution goals and has planned his or her other calls.

c: yes. but you still have to use judgment. you have to judge if, and when, you
need to take corrective action. unless you take the appropriate corrective action
listed in the "correction" section of the "guide" (exhibit 2), measurement is a
waste of your time and money.

m: i agree. i can see that the foundation of measuring and correcting lies first
in planning - by defining the yardsticks in numbers that are profit-orientated.

c: right. i couldn't have expressed it better.

copyright � 1998-2003 by bizmove.com - small business and government grants info.

all rights reserved

forging win-win solutions by harnessing the power of proven negotiation techniques

� are your deals more effective than those struck by other negotiators?
� do your business relationships actually improve as a result of your negotiation
skills?
� do they endure over time and remain profitable?

at this highly practical seminar you will examine the various components of a win-
win negotiation. you will learn how to create genuine partnerships and strengthen
existing relationships, while at the same time increase your chances of producing
the desired negotiation outcome.

the business negotiator� aims to provide tools for achieving goals, fostering
growth and understanding, and aligning incentives among parties whose interests
and perceptions are in conflict.

training style:
this isn�t just a sit-back-and-listen course. you�ll be put to the test in various
scenarios, using essential tools and techniques for gaining increased confidence
in your negotiations. while you will learn vital negotiation shortcuts, you will
also gain deeper insight into how the person across the table thinks, assumes and
reacts. by acquiring the benefit of proven techniques you will be able to
effectively manage every phase of the negotiation process.

this programme brings together a number of approaches, including a �three

dimensional� negotiation methodology created by harvard business school
professors, james sebenius and david lax. the methodology seeks to develop
effective negotiators who act in a mutually reinforcing way across three
dimensions:
(1) during the process at the table
(2) with respect to the substance of value creation
(3) away from the table to change the game so it is most likely to yield optimum
results.

key learning objectives:

1. understand effective preparation techniques for improving your negotiation
outcomes
2. assess your individual strengths and weaknesses against a profile of �the ideal
negotiator�
3. recognise different approaches to negotiation and understand their implications
4. understand negotiation techniques for both one-to-one and team-to- team
negotiations
5. find out how to pick up signals, interpret them and act on them during your
negotiations
6. improve your ability to assess concessions, analyse priorities and go for win-
win
7. recognise closing opportunities and use them for strategic advantage
8. gain an insight into the role of culture in the negotiation process
9. learn how to cultivate partnership relationships with clients or suppliers
10. discover the most effective techniques for handling negotiation deadlock

who should attend

everyone who needs to develop win-win negotiation techniques including:
� purchasing & procurement managers
� senior managers
� commercial managers
� contract managers
� business managers & analysts
� finance managers
� sales and marketing professionals
� recruitment consultants
� project managers
� team leaders
� technical professionals and engineers

your course facilitator

bernie diver, associate, management toolbox limited

bernie diver is an associate of management toolbox limited. bernie focuses on

assisting companies to design, negotiate and implement appropriate commercial
constructs using balanced scorecards (bscs) to drive performance. previously
bernie worked with telecom new zealand ltd, transforming the way in which telecom
approached the management of its supply chain. bernie was the architect of the
remuneration model (rem model) and bscs, and a member of the negotiation team for
telecom�s $800 million partnering agreement with french telecommunications
equipment provider alcatel.

bernie has successfully translated the theory of strategic partnering and

relationship management in to the implementation of simple and pragmatic
commercial structures with rem models and bscs that are communicated at all
levels.

previously bernie was the national procurement manager at tiptop ice cream company
and held a number of senior contract management and logistics roles within the new
zealand dairy industry.

bernie is a regular presenter of strategic partnering, negotiation and

relationship management at both public and in-house conferences and has recently
studied strategic negotiation at harvard business school.

previous attendees of the business negotiator� said:

� the interaction was invaluable - real examples helped with understanding the
theory�.
mike lockyer, finance/corporate services manager,
techtonics group

� enjoyed the open, relaxed feel - felt free to discuss anything�.

aaron young, sales and marketing manager, capital machinery nz ltd
� well managed and practical�.
campbell cooper, business development manager, aragorn ltd

programme

day one

8.30 registration and coffee

the strategic negotiator: developing the mindset of a strategic negotiator

� defining the characteristics of successful versus average negotiators
� analysing your own strengths and weaknesses as a negotiator
� recognising how body language and voice quality affect your negotiation
� identifying the power in negotiation so that wherever it sits, you can harness
it to deliver win-win outcomes
� how to use creative thinking to develop options for mutual gain
� negotiating strategically for long term benefits

planning your negotiation effectively for a win-win outcome

� techniques for identifying information concerning the other side�s position
� defining entry and exit positions
� setting your maximum and minimum objectives in advance for each negotiable issue
� building a settlement range in advance
� valuing and identifying concessions and determining what you want in return
� a framework for ensuring that you have all bases covered

choosing your win-win negotiation style

� key factors that should affect your choice when choosing the appropriate
negotiation strategy
� understanding the six types of power in negotiations: how to recognise and use
them
� how should the balance of power influence your choice of strategy?
� examples of different types of negotiation tactics - how to use them and how to
counter them
� effective tactics that can be used when in a low power or weak negotiation
position

establishing the climate: gaining advantage early on in the process

� maximising your advantage with a strong opening
� establishing and maintaining control without dominating the negotiation
� techniques for creating the right atmosphere to increase the probability of a
successful outcome
� using questioning effectively to identify a negotiator�s maximum and minimum
objectives
� techniques for recognising and reading signals from the other negotiator
� examples of the right and wrong type of question to ask in negotiations

core concepts:
a broad introduction to negotiation concepts and an opportunity to share examples
of negotiation challenges we aim to overcome.

assess the relevant context of the negotiation problem

� barriers to progress
� access to the right people

planning:
understanding for all parties the alternatives to not reaching an agreement

what is the negotiation problem?

� deal vs batna
� structural assessment
� psychological assessment

creating value:
looking at ways to align incentives between parties so as to create a need for
ongoing engagement.

opportunities and barriers to creating and claiming value

� performance based remuneration models
� balanced scorecards

framework for action:

a set of tools that can be used to assist in the strategic planning and tactical
engagement of any negotiation.

a 3-d approach to the negotiation:

� 1-d tactical
� 2-d diagnosis and design
� 3-d scope and sequence

day two

strengthening your bargaining and proposal making skills

� understanding how you can build on yourown strengths and overcome your
weaknesses in a negotiating situation
� effective methods for making and receiving proposals to aid agreement and avoid
deadlock
� using counter-proposals to keep the negotiation processing
� packaging the proposal to interest the other party
� successful strategies when trading concessions
� reading the other side�s negotiating position from the pattern of their
concessions
� using bargaining to build momentum and avoid deadlock

understanding the key considerations for team negotiations

� identifying opportunities for using teams to negotiate
� what are the differences between one-to-one and team-to-team negotiations?
� planning issues when negotiating with a team
� examining the different roles in a negotiating team
� essential team negotiation strategies and techniques for win-win
understanding the impact of culture on negotiation behaviour
� adapting your negotiation style to different cultures
� the importance of values in the negotiation process
� techniques for avoiding regional generalisations
� understanding and reading differences in non-verbal communication styles
� differences in thinking and decision-making processes: sequential approach
versus holistic approach
� being aware of different closing styles
case study examples

avoiding common pitfalls and effectively handling �dirty tricks�

� increasing your probability of success by avoiding obvious obstacles
� examining the most commonly made mistakes in negotiation
� techniques for handling common negotiation ploys and dirty tricks
� breaking deadlocks and overcoming obstacles to agreement
� changing bargaining practices that have evolved over time
� applying the �negative consequences� technique
practical exercise: deadlock breaking techniques

closing the deal

� negotiating strategically for the long-term
� timing the close: techniques for testing when the other side is ready to close
� assessing different types of closing techniques and how to use them
� key points to consider when writing up the agreement at the end of the
negotiation
� understanding the difference between agreement and commitment: agreeing on
actions and recording outcomes immediately

eric gould's negotiation newsletter

subscribe to newsletter

* a bigger box
* could you just listen?
* previous newsletter

a bigger box

how many times have you heard the following: "oh, that's what you're talking
about!" or "oh, that's what you want! why didn't you just say so?" most of our
problems in communicating with others stem not from disagreeing but
misunderstanding the other person. because we don't understand where the other
person is coming from, we make assumptions about his or her real needs and desires
based on the face value of what he or she says, and this limits our ability to
devise creative solutions. it limits the scope of our box.

to solve a problem, we first have to be aware that there is one. we have to see
that a misunderstanding, rather than disagreement, exists. we then need to take
the time to listen to what the other person is saying to understand what their
needs and desires are. we also have to communicate our needs and desires to the
other person so that they can understand us. once we have mutual understanding,
we can begin to look beyond our respective statements and come up with the
solution that best fulfills everyone's concerns. understanding our counterpart's
needs and desires as well as our own increases the box we're working with by
giving us more knowledge, more information - in other words, better data.

mother knows best?

two sisters are arguing over an orange. the first sister says, "i should have
that orange. it's mine." the other sister comes back with "no, i should have it.
it's mine." the first sister responds, "i'm older, so i should have it," and the
second sister retorts, "no, i should have it because i'm younger." they keep
arguing back and forth, each trying to make a stronger case for having the orange.
the argument doesn't go anywhere -- the sisters could argue like this forever.

when the mother comes into the room, all she sees are her daughters arguing
again. why can't they just get along and learn to share? the mother is tired of
always being the referee, but she's sure that with the knowledge and wisdom of
motherhood she can resolve things quickly. she tells the first daughter to slice
the orange in half, and the other daughter to choose her half first. now each
girl has half of an orange -- as far as the mother's concerned, the problem's
solved. for her, 50-50 is a fair split. but the mother only considers the
problem from her perspective and never asks the girls what their real needs and
desires are. this limits her understanding of the real problem.

that's why she's surprised when the girls come back. "look at how little
juice i squeezed out of my half," says one. "look at how little rind i could use
for my marmalade," says the other. so what was the girls' real interest in the
orange? one daughter wanted to make orange juice and the other orange marmalade.

if the mother had looked beyond the face value of the girls' argument "i want
the orange" she would have been able to see the situation from the girls' point of
view, and would have understood their reasons for their frustration with each
other. she would have been then able to divide the orange in an entirely
different way: the full fruit pulp to one daughter for the orange juice, and all
of the rind to the other for the marmalade. even if one of the sisters had used
"hard ball" tactics such as "i am older therefore" and negotiated 70% of the
orange, she would have still been on the losing side because she could have had
the full 100% of what she needed. the significant point here is not how much of
the orange each daughter received, but whether their true interests were served as
a result of the mother's understanding of the scope of her "box."

monday am voicemail

imagine you're a stressed-out manager and you receive a voicemail monday morning
from one of your employees. he wants a higher salary and he wants to meet with
you this morning. you've just been told last week that you will have to make do
with the budget you have for the rest of the year. you have no extra money in
your budget. so what do you do? the employee wants more money, and you have
none. if you take the employee's assertion at face value, there is no solution.
you need to enlarge your box, increase your options.

let's take a closer look at your dilemma. what would happen if you looked beyond
"i want a raise"? there probably are many more reasons for the employee's
discontent than just a desire for cash:

# the employee is bored with his job and doesn't feel challenged
# the employee has been putting in a lot of overtime and is exhausted
# two people in the department left, creating more work for the employee
 # the employee just found out his friends are getting paid much more for
similar work in other companies
# the employee has a job offer and doesn't know if he wants to take it, so
he's testing his current company
# the employee has significant personality conflicts with his current
supervisor/assistant/etc
# the company's stock just fell, and the employee lost confidence in the
company

your goal is to find a mutually acceptable solution that fits within your
budget. but before you attempt to solve the problem, try looking beyond the
employee's initial statement. this way, you will be sure you are dealing with the
right problem, while expanding your box -- your set of possible solutions. for
each possible problem above, there are countless solutions. the more you know
about the source of the employee's unhappiness, the bigger your box will

the million dollar deal

consider the sales representative who goes out on the road with orders to get a
million dollars for a deal. setting a fixed price gives the sales rep no
alternatives. she's working within a very small box. she spends hours trying to
get the client to come up with the cash price, but the client is becoming
frustrated and the negotiation is going nowhere. the sales rep secretly wishes
that the vp could be there. he always seems to be able think outside of the box,
to come up with creative solutions.

but the vp isn't necessarily more inventive or clever than the sales rep -- he
is simply better informed about their company's direction, strategy and overall
levels of commitment. he's working within a bigger box than she is -- he has more
possible options to work with. because she is not as familiar with the company's
overall needs, wants and desires, and because she has not been given the authority
to use this knowledge, she is crippled by the size of her box, or the tight
boundaries of what she perceives as her authority.

frustrated with the meeting, the sales rep goes back to the vp and asks if he
has any other suggestions. he suggests something and she says, surprised, "you
mean i can do that?" her mind opens up not only to the vp's suggested action but
all of the other possibilities she has always wanted to have but never thought she
could. suddenly her box is a lot bigger -- and so is her perceived authority.
she is empowered by the knowledge she has about the company's best interests and
by the authority to use this knowledge in negotiation. this is what makes the
sales rep's box bigger and her negotiation much more effective.

one dog too many

little billy's dog just had two puppies. billy's family doesn't want to have too
many dogs in the house. so the parents sit down with their son and together they
decide they should sell one of the puppies. it's a mutual decision, one in which
billy fully participates. he offers to sell the puppy himself. the next thing
they do is decide their asking price. "i think this puppy is the best and the
cutest puppy in the whole world," says billy. "i think he's worth ten thousand
dollars." the parents smile and say, "alright, you go sell the puppy."

puppy for sale $10,000.00

 the next day billy comes home with no puppy. "where's the puppy?" asks his
mother. "i sold it," the boy proudly declares. "you sold the puppy?" the mother
exclaims. billy replies, "yes!" "well, how much did you get for him?" "ten
thousand dollars. just like i said i would," says billy. "you got ten thousand
dollars for that puppy?" the mother cries incredulously. and billy says, "yes.
little suzie down the street gave me two five-thousand-dollar kittens."

as children, we see no limits - anything is possible. but as we grow, we box

ourselves in with rules we learn at home, in school, at work. in negotiation, we
cannot allow ourselves to get locked in by these walls. we need to understand how
big our box is as well as the box of the other person. we need to understand
where and how these two boxes overlap. that's where we can start thinking
creatively. listen, ask questions, understand, and then tear down the walls.
ultimately, it's not about thinking outside the box, but about what size box you
have to work with.

you're back in that meeting. you've got to close the deal. you have 30 seconds
to decide who is the best person to help you negotiate. who are you going to take
- little billy or suzie down the street?

could you just listen?

when i ask you to listen to me and you start giving me advice, you have not done
what i have asked.

when i ask you to listen to me and you begin to tell me why i shouldn't feel that
way, you are stepping on my feelings

when i ask you to listen to me and you feel you have to do something to solve my
problem, you have failed me,

strange as that may seem.

listen! all i ask was that you listen, not talk to or

do - just hear me.

advice is cheap; 50 cents will get you both dear abby and dilbert in the same
newspaper.

i can do for myself; i'm not helpless - maybe discouraged and faltering, but not
helpless.

when you do something for me that i can and need to do for myself, you contribute
to my fear and inadequacy.

and when you accept as simple fact that i do feel what i feel, no matter how
irrational, then i can quit trying to convince you and can get about the business
of understanding what's

behind this irrational fear. when that's clear, the answers are

obvious and i don't need advice.

irrational feelings make more sense when we understand what's behind them.

perhaps that's why prayer works, sometimes, for some people - because god is mute,
and s/he doesn't give advise or try to fix things. "they" just listen and let you
work it out or yourself.

so please just listen and just hear me.

and if you want to talk, wait a minute for your

turn - and i'll listen to you.

mr. schatzki is the author of negotiation: the art of getting what you want,
published by signet books.

change the negotiator �

michael schatzki frequently the negotiator on the other side will change for
reasons that are not tactical. for example, the old negotiator may have been
transferred or conceivably even fired. in such a situation it is important to be
very aware of the political needs of the new negotiator. he or she may find it
necessary to place his or her own stamp upon the agreement that is being
negotiated and may in fact feel forced to disown anything that the prior
negotiator did. rather than reacting angrily or negatively to such a situation,
try to work with this person in the framework of their political needs, perhaps
reshaping the deal or trading off some minor concessions in order to satisfy these
needs.

change the negotiator can sometimes be an effective strategy, when a

negotiation is deadlocked, particularly if personalities have become part of the
problem.

change the negotiator is also sometimes used as a tactic to throw the other
side off balance. the new negotiator will enter the scene, feign ignorance of what
has occurred to date, try to disavow concessions made by his or her predecessor,
while at the same time demanding to retain the concessions that you made.

when faced with "change the negotiator" either as a tactic or simply as a

result of personnel changes, never allow it to push you into making substantial
additional concessions simply because the negotiator has changed and wants more.
remember that the negotiation isn't over until it's over and if the new negotiator
doesn't like anything about what has happened to date, you always have the option
of going back to your initial positions and starting all over again. certainly
don't let them withdraw their concessions while insisting that you keep yours on
the table.

copyright 1997 - michael schatzki

a master negotiator

michael schatzki is a master negotiator whose high energy, content-packed

negotiation dynamics� keynotes, breakout sessions and seminars draw rave reviews.

memorable and entertaining

his negotiation dynamics� system offers participants a powerful set of tools

that will give them a critical edge in organizing and structuring all of their
negotiations. his stories, anecdotes and sense of humor bring to life his powerful
negotiation dynamics� system.

fully customized

mike does his homework. he customizes every program, from a 45 minute keynote
to a two day seminar. he learns about your business or industry and tailors the
program to precisely fit the needs of his listeners. the result is that audiences
take away ideas, concepts and approaches that they can use immediately to
negotiate the best possible agreements.

it works

more than 75% of mike's programs are for satisfied repeat customers who find
him to be a dynamic, entertaining speaker and trainer. the negotiation dynamics�
system really works!

phone us at:
(888) 766-3530
fax us at:
(908) 766-5125
e-mail us at:
mikeschatzki@negotiationdynamics.com
visit our web site:
www.negotiationdynamics.com

write us at:
negotiation dynamics
79 page hill road
far hills, nj 07931

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negotiating the price you deserve

by ed brodow, ceo, ed brodow seminars, inc.
many salespeople are afraid to stand by their price structure because of a single
mistaken assumption: "if i refuse to negotiate my price, i'll lose all my
customers." the reality is just the opposite. if you aren't prepared to defend
your price, your customers will lose respect for you.
online spokesperson

the salesperson's dilemma

every salesperson eventually must confront the following situation: you want the
deal badly. you need the business. you've been suspecting that your price is too
high to begin with. so what do you do? you lower your price rather than negotiate.

many salespeople are afraid to stand by their price structure because of a single
mistaken assumption: "if i refuse to negotiate my price, i'll lose all my
customers." the reality is just the opposite. if you aren't prepared to defend
your price, your customers will lose respect for you. here are ten tips that will
help you to negotiate the price you deserve.

tip number one: you are entitled to reasonable compensation.

just as your doctor, your accountant, and your plumber are entitled to a
reasonable compensation for their services, you are entitled to a reasonable
compensation for your product or service. what is reasonable? whatever you can
convince your buyer that your product/service is worth. the operative principle
here is value. no buyer will begrudge you a price that is reasonable relative to
the perceived value of the product/service.

tip number two: don't sell yourself short!

do you believe that what you are selling is worth the price? if the answer is yes,
and i certainly hope it is, then you should expect to receive a worthy price. if
you lack confidence about your product or service, buyers will become aware of
your doubts.

have you noticed the range of prices for similar products and services? it
fascinates me when some salespeople are able to bring in the order at a premium
price while others can't seem to get by without discounting. what accounts for
this? one salesperson gets up in the morning and says, "my product is great and my
customers are happy to pay my price!" another salesperson gets up and says, "my
product is great, but the buyer will never pay me such-and-such!"
don't sell yourself short.

tip number three: don't apologize!

once you have established the value of your product/service, present your price
with confidence. never apologize for your price. if you believe your price is
correct, just assume that your customers will agree.

tip number four: always be willing to walk away!

i call this brodow's law. you must be prepared to say, "next!" or your customers
will sense your uncertainty. the willingness to walk away from a sale comes from
having options. it is crucial to have other potential sales in the line-up. when
you know that your sales career doesn't hinge on this one deal, you can exude
confidence. and buyers will bow to confidence.

tip number five: how to justify your price.

once you have decided on your price, it's not good business to tell your customers
to "take it or leave it." you must provide reasonable justification so your buyer
will say, "okay, that makes sense. i can accept that." here is your justification:

1. give your price legitimacy: "my price is reasonable for the marketplace.
this is the going price for this product/service." if your buyers are doing their
homework, they will know you are telling the truth. and remember, you are entitled
to a reasonable compensation.

2. focus on the value of your product/service, not on the price. buyers will
pay for value. sell features and benefits.

3. show them that you'd like to help them out, but you can't because you
can't lower your price for one customer without lowering your price for everybody.

tip number six: when to negotiate your price.

obviously, there are exceptions. you want to leave yourself the option of
negotiating a lower price if it is in your best interest to do so. the operative
principle here is called "saving face." in other words, you will only lower your
price if you can save face, i.e., maintain the integrity of your basic pricing
structure. so you tell your customer, "i only accept a lower price under the
following circumstances..." what are those circumstances? you might consider
offering a discount if the customer will buy more than one, or if the merchandise
is flawed. i recently gave a keynote speech at a reduced fee for a client who had
already booked six two-day seminars. my face saver: the multiple bookings. as a
result of the interest generated by the keynote, the client booked another six
seminars.

tip number seven: make the buyer work for concessions.

if you appear too anxious to negotiate your price or terms downward, the buyer
will perceive you as worth less (or worthless). one of my favorite price
negotiations was with a client who received a proposal from a competitor of mine
who wanted the job so badly that they offered to do a two-day negotiation seminar
for nothing (just to break into the account). my client tried to convince me that
i should lower my fee, but i politely refused. in the end, the client booked me
because they viewed my competitor's presentation as worth the price, namely zero.
my seminar was perceived to be more valuable due to my confident negotiating
posture.

if you do lower your price, be sure you make your buyer earn the concession. don't
give in right away. ask for concessions in return, such as additional business.

tip number eight: qualify your prospective buyers.

there are occasions where you may be wasting your time negotiating with a
customer. if you think a buyer may be out of your price range (either below it or
above it), ask:

"what kind of budget are we looking at?"

"what range are we looking at here?"

you may want to let them know that you are not in the same range. you may want to
sell them a more or less expensive item. or you may want to fit them into an
exception category-provided you can save face.

tip number nine: how to deal with three typical buyer tactics.
 1. the flinch: the buyer says, "your price is what!" and they start choking.
your response:

� silence. they just wanted to see if they could get a reaction out of you.
don't react. it's a test.
� be a broken record. repeat your price and justify it as in tip number five.

2. the squeeze: the buyer tells you, "you have to do better!" or "i can get it
for less." your response:

� sell your unique qualifications. take the focus off of the price. get them
to agree that yours is the one they want, and that the price is only a
technicality. if they really want yours, they will find a way to pay for it.
remember my story of the competitor who offered to speak for nothing. just because
the buyer has a potential vendor with a lower price doesn't mean that they want
that vendor.
� tie a string. offer to reduce your price only in return for additional
volume, or a commitment to purchase other products at full price.

3. the sob story: they cry, "all i have in my budget is." or "all we can afford
is." your response:

� don't budge. call their bluff. they may be testing to see how firm your
price is.
� ask, "are there any other budgets you can draw from?" their budget for your
product or service may not be the only one available to them.

tip number ten: leave the customer feeling satisfied.

whatever you do, remember that your objective is to create a satisfied customer.
how to satisfy your customers without lowering your price:

1. be a good listener. allow them to get their gripes about your price off
their chest. they will thank you for being patient with them.

2. help them to accept your fee by providing reasonable justification.

3. sell your unique strengths.

believe in yourself

the major obstacle that prevents salespeople from receiving the price they want is
the fear of rejection. one way of dealing with this fear is to lower your price. a
better way is to overcome your fear by schooling yourself in assertive negotiation
techniques. when you do it right, both you and your customer will feel a sense of
satisfaction.

ultimately, your belief in yourself and your product/service will be your best
weapon. your confidence will be rewarded.

copyright � 2000 ed brodow seminars, inc. all rights reserved.

sales negotiations
business challenge
customers expect business negotiations to result in positive, fair outcomes that
satisfy all parties. this expectation requires salespeople who can negotiate in
any sales situation, ensuring outcomes that preserve the relationship and create
benefits both for the customer and the selling organization.
sales negotiations

sales negotiations teaches negotiation methods that enhance both the customer
relationship and sales results. the course builds skills for working all phases of
the negotiation, from preparation to follow-through.

key content

the following are content highlights of sales negotiations:

* driving principles that high performing salespeople use in successful

negotiations
* critical skills to identify the customers position, create forward momentum,
and influence the customers perception
* discussion of five modes of negotiation and how they relate to results and
relationship
* examination of the perceived value that the customer is receiving and giving
in the sales negotiation
* practical application of five skills for surviving a competitive negotiation
* a worksheet tool for preparing and conducting competitive negotiations

target audience

sales negotiations is for salespeople faced with a complex sales task in which
building the client relationship is crucial. it is most effective for salespeople
who must negotiate price, terms, and conditions of a sale in a competitive
environment. sales managers involved in similar tasks will also find value in the
course.
outcomes

by participating in sales negotiations, participants will be able to:

* negotiate more profitable business deals for the selling organization

* build customer relationships and loyalty through tough, but fair,
negotiation
* increase win rates for new business opportunities by negotiating deals that
create clear value for customers

sales negotiations is a 2-day classroom-based learning experience.

for more information

please call 1-800-forum-11 or visit us at www.forum.com.

you can`t sell anything if you can`t sell yourself

by marjorie brody, csp, cmc

more information about the author: click here for the marjorie brody, csp,
cmc home page

what makes some sales professionals standouts and others merely competent?
i'll give you a hint, it's not the products they are selling. top sales
professionals have an edge. they know how to develop sales presentations that
deliver not only the benefits of their products, but the best of themselves to
their audience.

salespeople construct and deliver presentations around the theory that

speaking is an audience-centered sport. they think about their clients as they
plan, create, and deliver their presentations. sales professionals know that the
most effective presentations have to start and finish with the audience's needs as
the focus.

in a world filled with parity products and services, sales professionals who
best present themselves to their clientele come out on top. in a sales situation,
it is essential that your client or prospect be receptive to the communications
signals you will be sending, simplified here as the three v's - the visual, the
vocal, and the verbal. while all three are important, in some situations what you
say may not be as important as how you say it; for still others, they way you look
and the facial expressions you use will influence the impression your presentation
leaves.

your ultimate credibility as a sales professional will be determined by how

well you master the three v's.

visual - if a "picture is worth a thousand words," then the picture you

present to your clients as you stand before them must be visually sound. before
you have had a chance to say a word, many people will judge you strictly by your
appearance.

your choice of clothing for the occasion should be suitable; business dress
is always appropriate, even if your client is dressed informally. the only
exceptions are if you are at a sales meeting at a resort, and everyone is dressed
casually, or if your client asks you to come dressed informally. that still means
professionally dressed --neatly pressed, never sloppy. for women, nothing tight or
revealing - save the sandals for the beach.

you can never be faulted for looking "too professional," even if the
audience is dressed down. clothing should fit well, and you should be able to move
comfortably in it. always check yourself - both front and back - in a full-length
mirror. you don't want your appearance to detract from what you are going to talk
about. good grooming and pleasant facial expressions all add to the visual impact
you will be creating.

when you smile, it translates into your voice and your clients will pick up
on your enjoyment of speaking to them. your body language will also send a
message. don't cross your arms or fidget. use gestures to emphasize points, but be
careful not to flail your arms around. when standing in front of a client, lean
forward. don't sway or bounce. make regular eye contact with him or her. this
approach helps draw the client into your presentation. nodding to emphasize a
point also helps make a connection. if you nod occasionally the people you are
talking to will also. these interactions help to create a bond between you and
your customer.

vocal - the way you sound also has an impact. if you have ever listened to
someone speaking in a monotone, you know how difficult it is to pay attention to
what they are saying. there are six vocal cues to remember: pitch, volume, rate,
punch, pause and diction.

we all have a vocal range to work with, and when we are stressed, our voices
tend to rise. most clients prefer listening to a calm, lover pitched voice, and we
can all learn to speak this way. you can learn to lower your pitch by practicing
this simple exercise: repeat the following three sentences, each time using a
lower pitch: "this is my normal pitch." "do, re, me, fa, so, la, ti, do." "this is
my normal voice." repeat these sentences until you can deepen your pitch at will.
practice this exercise several times a day; after about a month, you will have
greater control of your pitch.

vary your volume, but keep it easy on the ears. not so loud that it's
painful, and not so soft that people have to strain. it is also important to speak
clearly and enunciate so you can be easily understood. if you speak too quickly or
softly, clients will have to work hard to pay attention.

vary your tone and speed, and tailor your delivery rate to accommodate any
regional differences. people from the northeast tend to speak more quickly than
speakers from the south. emphasize or "punch" certain words for effect, but don't
forget to incorporate pauses to let important points sink in.

proper diction is also essential - if you're not sure how to pronounce a

word, look it up or don't use it. and, unless you are asking a question, your
voice should drop at the end of a sentence. finish each sentence completely and
clearly, keeping your volume up while dropping your pitch.

verbal - there are four verbal communications rules to remember:

* use descriptive language

* use short sentences
* avoid buzz words and jargon
* avoid tag questions and qualifiers ("i guess," "i hope," "sorta,"
"probably") when preparing your sales presentation, keep your points focused, so
you don't ramble on in long sentences. adding tag questions (like "i think this is
a good proposal, don't you?") weakens your position, and using words like "umm"
and "like" and "you know" detract from what you are saying. think about what you
really want to say, and then say exactly what you mean.

by mastering the three "v's," you will be well on the way to mastering the
skills needed to effectively sell yourself, your company, and your product or
service.