Value and Negotiation in Sales

Name: Value and Negotiation in Sales
Author: Doug Van Riper

Learn how to determine value in negotiations.

Preview the first lesson free — get full access to all 7 lessons.

Course: On-Demand

(bright music) Have you ever been in a situation where people seem to have completely different opinions on what the value of something is? In these lessons on value and negotiation in sales, we'll review some key ways to focus on value during the negotiation process. We will also address subjective value, value claiming and its impact, value creation in negotiations, and the relationship between value, price, and the offer. How do people determine value? The definition may be subjective as the value set for something may seem like a great deal to one person, but the other party doesn't see it that way at all. Selling value is different from selling on price. Let's start with emotions and their relationship to value in sales negotiations. As humans, our emotions are unavoidable, and can either be recognized or unrecognized. Emotions are essentially who we are, and drive how we are designed to function. They can be negative, or positive, and are powerful influencers. Emotions can cloud the negotiation process by distracting each party from focusing on the main matters at hand. They can also play a role in negotiations. On the transactional side of sales, people buy based on emotion far more than need. Believing you need an item, feeling excited you'll finally get it, and knowing what it can do for you are all emotions by the perceived value as defined by that individual. Learning the why of the emotion and its trigger will help you to understand what's motivating the prospect. Don't debate the validity of the emotion. You'll rarely win, and can't argue against it logically. No matter how wrong or right you feel it is, it is a best practice to address positive or negative emotions. Once you know the source of the emotion, you can focus on reasons, not symptoms. Positive and negative emotions are equal in the sales process. They determine the outcome. People often think they buy logically, but that's actually relatively rare. We search for ways to justify logic via emotion. So, spending time understanding the buyer's emotional reasons for exploring this deal is critical. It is also important for you to keep your own emotions in check, and maintain your composure during the process. Effective negotiators usually have a high emotional intelligence, or EQ. This is because they're able to stay grounded throughout the process. They remember the sales negotiation process is about helping to get what they want in the negotiation. So they consciously work on staying centered, especially when they feel their emotions heating up for any reason.

Intermediate Provider : Doug Van Riper 7 Lessons · 20m in Arabic, German, English, Spanish, French, Portuguese, Urdu, Chinese

Course Description

Negotiation occurs in sales because people have different perspectives of the value of something. When one party establishes a value system based on what they deem reasonable, others may not see the same value, and counter with a different amount. These lessons will teach you how to negotiate in these circumstances, using various methods such as counteroffer strategies. In this course, we will demonstrate how to focus on value during the negotiation process. You’ll learn how value is determined and how to effectively navigate through negotiations by understanding the main drivers of value. We’ll explore why people often have different perspectives on the value of something, which initiates the negotiation process. You will learn how emotions influence value, how people determine value, and how to effectively negotiate with these factors in mind. We will cover the relationship between value, price, and the offer. By the end of this course, you will understand how value perceptions differ, and how to integrate that understanding into a negotiation process that leads to a mutually agreeable solution. Finally, you will learn how collaborations are valuable in negotiations, and how to overcome obstacles during negotiations.

What You'll Learn

Distinguish between value claiming and value creation in sales negotiations
Determine how value is established and identify the main drivers of value
Apply counteroffer strategies to negotiate when parties perceive value differently
Recognize how emotions and subjective perspectives influence value
Analyze the relationship between value, price, and the offer
Overcome obstacles and use collaboration to reach mutually agreeable solutions

Key Takeaways

Negotiation arises in sales because people hold different perspectives on the value of something.
Value can be subjective, and emotions influence how people determine and perceive value.
Value claiming and value creation are distinct approaches within a sales negotiation.
Understanding the relationship between value, price, and the offer helps navigate negotiations effectively.
Collaboration is valuable in negotiations and supports reaching a mutually agreeable solution.

Frequently Asked Questions

What will I learn in this course?

You will learn how value is determined, how emotions influence value, the difference between value claiming and value creation, the relationship between value, price, and the offer, and how to overcome obstacles and use collaboration during negotiations.

Why does negotiation occur in sales according to this course?

Negotiation occurs because people have different perspectives of the value of something; when one party sets a value system based on what they deem reasonable, others may not see the same value and counter with a different amount.

What topics or lessons does the course cover?

The lessons cover Sales, Emotion, and Negotiation; Valuing and Negotiating; Subjective Value and Its Role; Value Claiming in Sales; Value Creation in Sales; Value, Price, and Offer; and a Test Your Knowledge assessment.

What is the goal of the course by the end?

By the end, you will understand how value perceptions differ and how to integrate that understanding into a negotiation process that leads to a mutually agreeable solution.