Negotiation Skills – Winning As a Seller

Just as a buyer can employ certain tactics to strengthen her negotiation position and results, a seller can do certain things to benefit his position and results. It is learned negotiation skills that give a seller advantage and the consistent application of them will pay off over time.

In a previous article, I noted how the buyer in a negotiation usually has the upper hand, because there are more things a buyer can do to successfully conclude a deal. The reason for this is fairly obvious: a seller has a product or service they need to sell to make money, and in almost every market on the planet, there is substantial competition for that product or service. Buyers can always go elsewhere and try to get a better deal if they don’t like the one they are engaged in. It’s what makes selling anything a tough, tough job.

But, there are things a seller can do to help his position. Here we will discuss a few.

1. Make it clear you have the buyer’s best interest at heart.

This means be sincere and prove it. Using over-baked, cliche ridden lines about how much the you care for the buyer and will suffer a loss just to make her a great deal – does not cut it. Buyers see through this and it has the reverse affect of what most cheesy sellers are hoping for when they use this method. Buyers want to know the seller is there for something more than simply making money. Buyer’s understand why the seller is selling (to make money), so good sellers reveal to buyers there is more to it than just that. Communicating to the buyer that you love what you do, and giving them specific reasons why, will go a long way toward lessening the buyer’s concern that she will only be sold the most expensive product at the highest margin.

Make it personal. Tell the buyer you sincerely hope she will be coming back to see you on her next purchase because you hope to establish a strong, ongoing relationship. Few people are so hard nosed they will not react positively to a sincere offer of friendship. As a seller, you can make use of the natural human tendency to want more friendships. And if a buyer sees you as a friend instead of a huckster, she will benefit you with a sale and more to come.

2. Take a “Low Key” approach.

A low key approach is self-explanatory. It means “not high key”. A high key approach is talking a mile a minute, asking insincere questions, laughing inappropriately and too often, showing the buyer twice as much product as she needs to see and telling her twice as much information as she needs to know until she buys something… just to get rid of you. Interestingly, most people who go into sales naturally take this approach with buyers. And it usually does not work.

A low key approach is vital for a seller seeking to use negotiation skills to ensure a profitable outcome. This seller reminds the buyer he is there to assist her – not push her. He suggests products or services that may meet her needs and if they don’t, he will gladly refer her elsewhere. He reminds her he wants her to be happy, but not so that he makes a fat commission or profit, but so that she considers him a consultant, someone to whom she will come back to for counsel, or advice.

3. Apply the lever of time.

A buyer can negotiate like a bulldog. Usually a seller cannot. Again, this is because a buyer can usually walk if they are unhappy, whereas a seller must find another buyer if there is no sale. However, a seller does have the issue of time to his advantage.

Everyone has a limited amount of time. Nothing could be more obvious. Well, for a buyer, this has a cost, because if a buyer cannot make a deal work, she must go on to the next seller, and try again. And if that seller cannot make a deal or does not have what she needs, she must move on again. And again.

For most buyers, this a nightmare. Unless they are simply having fun with the buying process (and some people actually do), there is a strong likelihood the buyer simply wants to find the right product or service at the right price and get it done. Negotiating can be tiring and take away from other productive uses of one’s time.

A clever seller keeps this truth in mind at all times. He will engage with the buyer in every way possible, giving her total focus and attention and immersing her in the process of buying as much as he possibly can, for as long as he can, so that she will not be inclined to end the process and go somewhere else and start the whole thing over. As a seller, you remind the buyer how much she has learned about your product or service, how much you have devoted yourself to working through the deal, and how much more you are willing to do to see a beneficial result for both parties.

Now some sellers push this concept by claiming deadlines, such as a sale ending in 10 hours, or competition, such as another buyer who is waiting to make an offer on the same product, but often these are disingenuous methods of pushing buyers to buy before considering further. These methods may work, but if they are false, and a buyer learns of it, you may lose a customer for life. It is better to be straightforward, and tell the buyer about something imminent if it is true, but never use it to push buyer to a decision.

Just as a buyer can make productive use of negotiating skills, a seller can employ methods to give him a greater likelihood of success. Negotiating is a crucial element of buying and selling almost anything, and those who know the principles are most often the ones who realize the profitable deals.

How to Instantly Improve Your Next Presentation

Do you want to make sure your next presentation is as good as you can make it? This articles gives 7 ways to instantly improve your presentation so that you hold your audience’s interest, get your point across, and leave your audience wanting more.

1. Have one main point you can say in one sentence.

If you can’t describe your presentation’s main point in one sentence, your audience will likely not know what your point is either.

If possible, decide in advance what your point will be. But even if you’ve already prepared your talk, you can still choose a single point that pulls it all together.

If this article were a speech, the main point would be: You can instantly improve any presentation using these 7 simple techniques.

Ask yourself: If an 8-year-old asked you what your presentation was about, how would you answer them? Your answer is probably your main point. If you couldn’t give them an answer, spend a few more minutes quickly clarifying what your speech is all about. It’s the single best step you can take to improve your presentation.

2. Give structure to your presentation to make it easier to follow.

When we listen to a presentation, we don’t know what’s coming next unless the speaker tells us. We can’t know the next word or the next sentence. Unlike an article reader, your audience can’t glance ahead to see where you’re going. They also can’t re-read a paragraph they missed because if they do, they won’t hear what you say next.

What’s the solution?

Give them a structure they can follow. The classic outline is to “tell them what you’re going to tell them, tell them, and then tell them what you told them.”

But here are other ways to add structure to your talk:

Use chronological order: first, next, last; or past, present, and future. Talk about problems, solutions, and results. Focus on priorities, going from most important to least. Compare myths and reality. Use a familiar analogy where the parts of your talk correspond, such as the roots, trunk, and leaves of a tree. These are just a few ways to add structure to make your presentations easier to follow.

3. Ask questions that engage the audience.

One of the best ways to improve a presentation is to involve the audience. Instead of talking to them or at them, turn it into a conversation. One of the easiest ways to do this is to ask questions.

Asking questions gets people thinking and responding to you, at least inside their minds. With a small audience you may ask a few people to raise their hands or call out their answers. But even with 1,000 people you can ask questions and have 1,000 people coming up with answers in their own minds. Each will engage in their own inner conversation with you.

4. Speak as though you are talking to one person.

If you have ever heard a speaker who seemed to talk directly to you, it’s probably because they were. Even if you didn’t notice it, they probably always spoke as though they were one-on-one with each member of the audience.

How can you do this when you’re standing in front of dozens or even hundreds of people? You never address the group as a whole. You don’t say, “Everyone here…” or “all of you…” You say everything as though you were speaking to one person. This is a subtle but powerful difference.

5. Speak in short sentences.

If you want to drastically improve how well your audience pays attention and understands what you say, speak in shorter sentences than usual. Many of us tend to ramble a bit. In natural conversation, it’s common to use run-on sentences linked together with the words “and,” “so,” “or,” or “but.” Force yourself to use shorter sentences. This will make it much easier for your audience to stay with you. And it will also keep you from losing track of where you were going with your sentence. You will communicate more clearly.

6. Add variety to your voice.

Many speakers, especially men, talk with a monotone when they give presentations. They are either nervous or so focused on covering the content that they forget to speak with variety.

The solution is to pay special attention to adding vocal variety when you speak. One technique is to imagine that you are reading a children’s story. Use that same kind of variety that comes naturally when reading a story. Another approach is to pretend you are talking to a friend about something you are excited or feel strongly about. Give your voice some color and your audience will appreciate it–and they will stay much more interested.

7. Tell stories and give examples.

People love stories as long as they are relevant. You can improve your next presentation dramatically by adding a story or two that illustrates your points. I remember a time when I was speaking to a group of teachers, and I told them how my first grade teacher had changed my life by encouraging my parents to get help for my speech impediment. As a result, I speak without any impediment even though I was barely understandable when I started first grade.

That’s an example of using a story to create more interest and engagement.

Start adding stories to your presentations and your audiences will perk up and take interest. And if they don’t remember anything else you say, they will remember your stories.

Understand Present Value Versus Future Value

In this article, we will continue the financial investing series with the discussion of financial market structures known Present value and future value in macroeconomics.

The concept of present value versus future value is like the concept that a dollar today is worth more than a dollar. In fact, a dollar invested today earning interest will grow in value when the interest is paid and if the dollar plus interest is automatically reinvested for a further period of time, new interest will be earned on both the dollar of original investment and on the interest already earned. As this is repeated over a period of time, we call the result of compounding interest. It is possible to determine the future value of money by using

1. Financial tables.

a) Present value represents the original investment that we have in hand today.
b) Future value represents what that investment will grow to when interest is earned on a sequential renewal of investment, where the original investment plus all interest earned, keeps being reinvested for subsequent periods until maturity.

Here is the formula

FV = PV (1+I) where
FV is future value
PV is present value
I is annual interest rate
n is number of compounding periods

2. Present value of a single sum
In order to determine the present value, we must take the final sum and discount it by the interest factor working backwards from our known single sum. Here is a formula:
PV= FV/ (1+I)
The definitions for PV, FV, I, n are the same as 1. above.

3. Present value and the amount of the annuity payment of an annuity
There are two types of annuities
*Deferred Annuity:
Receipts on payments are made at the end of the period.
*Annuity Due:
Receipts or payments occur at the beginning of the period.
Future value of an annuity helps to calculate how much money needs to be invested today, in order to receive a certain payment in the future.

a) The present value of an annuity is calculated by the formula below
PV = (PMT/i) ยท [1 - (1 / (1 + i)n)]
Where
PV= Present value
PMT= The amount of the annuity payment
i =The annual rate of interest
n =The number of discounting periods

b) The amount of the annuity payment is calculated by this formula below
Where
PV= Present value
PMT= The amount of the annuity payment
i =The annual rate of interest
n =The number of discounting periods

I hope this information will help. If you want more information of the above subject, you can find this series of articles at my home page: