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Best Practices Entrepreneurship Human Resources Investing Management Negotiations Sales Skills Women In Business

“This Is How To Detect Fraud In Negotiations Easily” – Negotiation Tip of the Week

“You become susceptible to fraud when your greed outpaces your logic.” -Greg Williams, The Master Negotiator & Body Language Expert (Click to Tweet)

 

Click here to get the book!

 

 

People don’t realize; they’re always negotiating.

I’ve heard some negotiators say all is fair in love, war, and negotiations. And some of them will stop just short of fraud to obtain a favorable outcome. Others will outright attempt to defraud you. The latter negotiator types are the ones whose shenanigans you must be alert to – they’re the ones that can leave you financially and emotionally devastated.

They’re signs to observe, in both the spoken and written words, that someone uses, that can serve as a forerunner announcing their pending trickeries. Take note of the following. You’ll see what I mean. You’ll also discover how to detect fraud to protect yourself from those that attempt to defraud you in your negotiations.

Do you ever consider how easy it is for someone to commit #fraud against you in your #negotiations? Fraud occurs in one form or another more than you realize. Learn how to detect fraud before it’s unleashed on you. bit.ly/3gASVRN

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Best Practices Entrepreneurship Investing Personal Development

Your price defines the customers you get

Have you ever thought that the price of your product or service selects what customers you get? Your price will differentiate how the market perceives your company, and by what kind of customers are attracted to your products or services.

In short, you need to consider that your customers will fall into three categories:

  • The price-sensitive customer
  • The neutral customer 
  • The loyal customer

Let us start examining the price-sensitive customer. The main (and possibly only) reason why this type of customer decided to buy your product or service was because it was the cheapest. They care very little, if at all, about the features and functions and benefits of your products or services that makes it different from the competitions’ products or services. They do not value the extra work and resources your company has spent to develop a better product or service. Moreover, because they don’t really care about the product or service, they are also less likely to learn about how to use it (for a product) or understand it (for a service). The result of this is that they will clog your customer service lines with question after question on the most basic functions. They need a lot of “handholding,” and despite all the effort your company puts into meeting their ever-demanding needs, they will still be somewhat dissatisfied with your company, products, or services. So, to be clear, the price-sensitive customer is an expensive customer in two ways: they cost more to support in cash, and they are likely to express their dissatisfaction with your product or service to their friends, family, and anyone else who cares to listen to them. 

Then also, there is the “ticker” to consider – you spent lots of time and effort supporting the price-sensitive customer, and you finally think you’ve got the customer on your side. You think the customer finally understands why your product or service is not only cheap but it is better, too. But wait a minute. As soon as a cheaper alternative to your product or service shows up in the market they will switch as quickly as a flash. The alternative may not be nearly as good as your product or service, but it has one thing going for it – it is more affordable. So, all your hard work and effort to keep your price-sensitive customer happy and loyal will be for nothing – as they will disappear in a flash! You’ve been unceremoniously dumped – for a “cheaper model.” So, you are lucky if you ever made a profit from that price-sensitive customer in the first place. A lot of time and effort for little, if any reward. 

Next, let’s examine the loyal customer. This customer is the polar opposite of your price-sensitive customer. The loyal customer loves your product or service. The loyal customer does not care much about price. That’s a good thing! But they do care genuinely about the value they receive from your product or service. You need to hear that – it’s important! 

They are unlikely to use your customer support. Another good thing. In the rare occasion, the loyal customer will contact the company’s customer support function, it is more than likely to tell them they have figured out something about the company’s product or service the company itself did not know, or that they have figured out ways to use the product or service in ways that were never really intended for in the first place, or in ways to add even more value than its original design or definition had initially intended.

Whenever possible, the loyal customer talks about your company to everybody and anybody they meet. They are your most dedicated evangelist. This is worth remembering, too!

The loyal customer did not buy your product or service because of low prices but instead because it has some unique feature, function, or benefit that is particularly valuable for them. For consumer goods or services, this includes a wish to be associated with the brand’s messages and positioning.

Next, we have the neutral customer. Alternatively, maybe we should call them the “pragmatic customer.” Obviously, in their behavior, the pragmatic customer is somewhere in between the price-sensitive customer and the loyal customer. The pragmatic customer does care about the price, but price alone is not the reason for their purchasing decisions. For the pragmatic customer, it is essential that they receive what they would consider good value for money. Again, this is worth noting. 

So, of these three types of customers, which customer do you prefer, and is your pricing aligned with your preference? 

Let me review some examples:

Consider this cloud-based telco, focusing on customers in the B2B space. They started out very small and grew slowly. They decided to price very low to capture market share from potential customers. So low, that profitability became an issue. Willingness to pay research showed them there was room in the market for a substantial price increase. In fact, the company was able to, over some time, to quadruple its prices. The aforementioned price increases in itself generated to a 25% increase in sales volume which, in itself, is interesting, but even more interesting, is that with these new higher prices the company attracted a whole different set of customers. Customers the CEO described as “professional” and as a consequence, led to a significant decrease in customer support costs that further led to about a ten times increase in profit margin. 

But not all companies are so lucky as this telephone company. Consider this national seller of home-improvement products. Profit margins were slim, and the company wanted to increase prices to boost its profit margin. Their business model was in-homes sales, and they advertised heavily on TV with the central message of deep discounts. Willingness to pay research showed them that the general consumer population was not very price sensitive. With one exception, those customers who had a preference for buying this kind of home-improvement product by in-homes sales were extraordinary price sensitive. This meant that the company’s ongoing low-price marketing only attracted those customers for which price was the most import decision-driver. This led to a “big” problem for the company. They could not increase prices, because that would severally affect the sales volume among those highly price-sensitive customers. They could not change their TV advertising to a value or benefit message, as this would severely impact the number of sales leads the company received – as those customers who want to buy in an in-home sales model are those that are the most price-sensitive. The company had painted itself into a corner from which there was only one way out – start a new brand, which turned out to be an expensive and involved proposition!

So, think about this the next time you are considering your pricing strategy. The last thing you want to do is cater to the least favorable customer at the expense of your most valuable customer. Your sales volume, profit margin, and revenue depend on you getting your pricing strategy right. 

Per Sjöfors
Founder
Sjöfors & Partners
www.sjofors.com

Categories
Best Practices Entrepreneurship Human Resources Investing Management Marketing Negotiations Sales Skills Women In Business

“This Is How To Attack Difficult Choices In Negotiations” – Negotiation Insight

Negotiations can become complicated when presented with difficult choices. But you can attack those difficulties by being cunning, beguiling, and using a little lateral thinking. The following is how you can accomplish that.

Click here to discover how you can make difficult choices easier!

 

Remember, you’re always negotiating!

 

Listen to Greg’s podcast at https://c-suitenetwork.com/radio/shows/greg-williams-the-master-negotiator-and-body-language-expert-podcast/

 

After reading this article, what are you thinking? I’d like to know. Reach me at Greg@TheMasterNegotiator.com

 

To receive Greg’s free “Negotiation Tip of the Week” and the “Negotiation Insight” click here https://themasternegotiator.com/greg-williams/

 

 

 

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Best Practices Entrepreneurship Human Resources Investing Management Marketing Mergers & Acquisition Negotiations Sales Skills Women In Business

“This Is How To Use Leverage To Win Negotiations” – Negotiation Insight

As a #negotiator, #leverage can enhance your #negotiation efforts. But it can become a tool turned against you if you misuse it. Discover how you can use leverage to improve your negotiation outcomes. bit.ly/310PAHc
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Best Practices Entrepreneurship Human Resources Investing Management Marketing Negotiations Sales Skills Women In Business

“This Is How To Use Doubt To Win More Negotiations” – Negotiation Tip of the Week

“Doubt can be a mental strangler that leads some people to become less than who they are.” -Greg Williams, The Master Negotiator & Body Language Expert (Click to Tweet)

Click here to get the book!

 

“This Is How To Use Doubt To Win More Negotiations”

 

People don’t realize; they’re always negotiating.

“I’m not sure. If we use that in our negotiations, our real intent might create doubt about our seriousness. That could cause the other negotiators to act unpredictably. You’re right. That’s something we have to consider and plan for, but by having them doubtful about our intent, we’ll keep them off balance. Then, when the time is right, we can be more definitive about our actions.” You’ve just been privy to a conversation that occurred between two negotiators about the use of doubt in their negotiation.

Doubt creates uncertainty. It’s a tactical tool that every smart negotiator uses in negotiations. Thus, good negotiators use it deliberately to motivate the opposing negotiator mentally. Doubt is also the tool that’s used in everyday life to encourage people to adopt one action versus another.

Click here to continue, and you’ll discover how you can become a more persuasive negotiator by injecting doubt into your negotiations.

 

Remember, you’re always negotiating!

 

Listen to Greg’s podcast at https://c-suitenetwork.com/radio/shows/greg-williams-the-master-negotiator-and-body-language-expert-podcast/

 

After reading this article, what are you thinking? I’d like to know. Reach me at Greg@TheMasterNegotiator.com

 

To receive Greg’s free “Negotiation Tip of the Week” and the “Negotiation Insight” click here https://themasternegotiator.com/greg-williams/

 

Categories
Entrepreneurship Human Resources Investing Management Negotiations Sales Skills Women In Business

“Would You Like To Be A More Powerful Negotiator” – Negotiation Tip of the Week

“To be seen as being powerful, you must first see the power within yourself.” -Greg Williams, The Master Negotiator & Body Language Expert (Click to Tweet)

Click here to get the book!

“Would You Like To Be A More Powerful Negotiator”



People don’t realize; they’re always negotiating.

In every aspect of your life, you’re negotiating. The vast majority of people don’t realize that. Thus, to become more successful, you must become a more powerful negotiator! Why? Because the better your negotiation skills become, the more successful you’ll be as a negotiator. And that will allow you to obtain more in your daily activities. So, would you like to be a more powerful negotiator? If the answer is yes, observe the following.

 

Getting Better Answers

Asking questions as a negotiator is a way you gather information during the negotiation. But the questions you ask, and the way you ask them is what’ll determine the quality of information you receive. To get better answers, listen carefully. Be attentive to how people speak and what they say, so you know what questions to ask that’ll get them to give you better answers.

When people speak, they give insight into what’s important. A negotiator does that by the emphasis he places on certain words or phrases, the gestures he emits as he’s talking, and the reflections displayed when he pauses while speaking. That’s what you can observe to determine the questions to ask.

As an example, if a negotiator talks whimsically about a time he obtained a significant achievement, most likely, he’s speaking from a position of pride. Thus, during the negotiation, ask questions that put him back into that mindset. And imply that he can experience that sensation again. That will give you momentary power. And with it, he’ll be more inclined to accept your offer at that time.

 

Control Emotions

How did you feel mentally, the last time you engaged in an activity that required alertness, and you were emotionally distraught? If you’re like most people, you experienced sluggishness in your thinking and responses. You weren’t firing on all cylinders. That’s what occurs when you enter a negotiation, and you’re depressed. You don’t perform at your optimum level, which means you’re less likely to perform at your peak.

As a negotiator, emotions can be daunting to deal with during a negotiation. You have natural highs and lows, depending on what’s occurring as your bargaining. While it can be easy to say control your emotions when you negotiate, in reality, it can become a more challenging task to accomplish.

So, what might you do to control the destruction that taut emotions can bring to a negotiation? You can role-play, before the talks, to get a sense of the feelings you might experience during the proceedings. You could also consider having another negotiator, as a teammate, to deflect and combat negative emotions that might occur. And you can establish walkaway points, marked by a heightened state of emotions, that signals your departure from the hagglings.

The point is, you must control your emotions to negotiate effectively. Thus, the better you manage your feelings, the more significant will be the probability of you having a successful outcome. And since you know the role and value that emotions have on your negotiation, plan how you’ll control them before you engage in your next one.

 

Empathy’s Role

He doesn’t care about me. He’s the negotiator type that only wants the best outcome for himself. Have you ever heard someone say that about a person with whom they’d be negotiating? A lack of empathy can wreak havoc in a negotiation because it has an enormous role per how negotiators perceive one another. I’ve witnessed some negotiators improve the deal for their counterpart because the other negotiator displayed an interest in that person’s wellbeing. That’s the added value that empathy can have.

During a negotiation, when possible, let your counterpart sense the emotional care you have about his plight. Display through your actions that you have a sincere desire to be fair. With a negotiator that’s like-minded, he’ll appreciate your gesture and reward you with an easier going negotiation. You will have exercised a peaceful power that ignited the desire for him to reciprocate.

 

Accept Reality

If you wish to become a more powerful negotiator, you must learn to deal with reality. Some negotiators engage in negotiations too long. That causes them to become more emotionally involved, which pulls them deeper into staying engaged. They do so because psychologically, they want to see the outcome. In some cases, it’s like watching a movie that’s so bad; you can’t tear yourself away from it. Don’t allow this to happen to you!

When you first sense the minimum goals for the negotiation may be too far out of reach, begin to consider how you’ll exit. The sooner you withdraw from a situation that’s not getting better, the faster you can address one that may produce a more significant benefit. And that’s the value of accepting reality.

 

Positioning

Everything mentioned thus far, getting better answers, controlling emotions, the role of empathy, and accepting reality, can be enhanced through your positioning. Positioning is the tool that sets the stage per how others will perceive you. Thus, if you’re situated correctly before engaging in a negotiation, you’ll have a more significant opportunity to impact those activities.

You can position yourself by understanding the mindset of the person with whom you’ll be negotiating. That means you must know that person’s preferences, likes, and dislikes. Once you have those insights, display those characteristics when you’re in her presence. You can have others project your persona that she views as influencers. That will assist your attempts exponentially. It will also be the leverage that allows you to be a more powerful negotiator during your interactions.

 

Reflection

I started by suggesting you heighten the sense that you negotiate in every aspect of your life. And I suggested, to acquire more in life, you must become a better negotiator. By employing the insider-thoughts presented, you can increase your negotiation abilities. That will make you a more powerful negotiator. And everything will be right with the world.

 

Remember, you’re always negotiating!

 

Listen to Greg’s podcast at https://c-suitenetwork.com/radio/shows/greg-williams-the-master-negotiator-and-body-language-expert-podcast/

 

After reading this article, what are you thinking? I’d like to know. Reach me at Greg@TheMasterNegotiator.com

 

To receive Greg’s free “Negotiation Tip of the Week” and the “Negotiation Insight” click here https://www.themasternegotiator.com/greg-williams/

 

 

#Powerful #BodyLanguageSecrets #csuitenetwork #thoughtcouncil #Negotiator #NegotiatingWithABully #Bodylanguage #readingbodylanguage #Negotiation #NegotiationStrategies #NegotiationProcess #NegotiationSkillsTraining #NegotiationExamples #NegotiationTypes #negotiationPsychology #HowToNegotiateBetter #ReadingBodyLanguage #BodyLanguage #Nonverbal #Negotiate #Business #SmallBusiness #Power #Perception #emotionalcontrol #relationships #BodyLanguageExpert #CSuite #TheMasterNegotiator #ControlEmotions #GregWilliams #success #Howtowinmore #self-improvement #howtodealwithdifficultpeople #Self-development #Control #Conversations #Howtocontrolanegotiation #howtobesuccessful #HowToImproveyourself

 

 

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Best Practices Entrepreneurship Investing Marketing Personal Development

Behavioral science puts old price theories to an end

Low prices gets more customers, high prices gets fewer customers. This is an “old” truth that the business economy has lived by for a very long time. In reality, our buying behavior is considerably more complicated than that, and a higher price can on the contrary increase sales volume. 

Traditional knowledge in business economics follows that price and demand have a linear relationship. The management’s marketing strategy in terms of pricing is then simplified to the practice of setting the price so that the total earnings are optimized.

However, modern research complicates this well-known business practice. We humans tend to allow psychology and other non-rational factors influence our behavior and that includes our buying behavior. This strict economic theory does not give the whole picture, though.

When people make decisions in purchasing situations, it is based on an estimate of the product or service value. Of course, that valuation may differ across various situations. For example, an umbrella is much more worthwhile to the buyer when it rains. Still, you see shops that sell umbrellas when it is not raining.

However, the estimated value correlates not only with the personal and current needs, but also on its relation to other products or services of the same kind. Is this product or service of good quality? Is it worth its price? If the answer is “Yes,” the consumer will purchase the product or service and on the contrary, if the product or service is not considered worth its price, then a purchase is unlikely to occur.

Since the consumer often does not know how good the quality of a particular product or service is, the price itself is a quality indicator. The value thus rises in the consumer’s eyes as the price rises. This is not about status or a desire to show off wealth. Of course, this can have a determining effect, but the principle applies in a general sense and also to products that do not have “status” attached to them.

An everyday example can be a pair of winter shoes. In the shoe store, it is difficult for the consumer who is not able to look at the shoes in-depth, to see if they are of high quality or not. If, on the other hand, the price is high, we assume that the quality and thus the value are higher. Buying low-quality shoes for the winter season, which may start leaking or quickly lose their freshness, is a huge miss, even if they only cost a fraction of the more expensive shoes.

The problem is that you as a consumer do not know this in advance. The cheap shoes can keep the moisture out as well as the expensive ones, but it is uncertain factor, that only time will tell whether your purchase gave you good value or not. However, price is a factor – perhaps the only one – that the consumer has in assessing the (perceived) value of the shoes.

As a company or trader, this becomes an important thing to consider, especially with regard to pricing strategies. A low price means that people also perceive the value as being lower. Therefore, a low price does not, of course, mean higher sales in number. In fact, in some contexts it can be just the opposite. Too low a price can lead to reduced sales as “cheap” signals poor quality and value to the (potential) customer.

Price is therefore important in itself. Companies need to understand that a correctly set price is not about placement on a linear graph, but about finding the point where consumers’ perceived value is the greatest.

The next question then helps to know how this value can be found, where is the optimal price? The answer is perhaps obvious: You ask the consumers. By asking consumers to value different products and indicate what they would be willing to pay, you get results for price indicators for a specific product or service. You can then see the true balance between price and sales volume. This can be refined through a number of variables and it is also possible to work across different markets.

The results are analyzed and processed and at the other end, there is a graph that looks very different from a “standard” graph analysis. Instead of just a linear relationship, it becomes a two-way staircase where different price plateaus and price walls appear in the data.

So, we humans do not act according to the classical and traditional economic theory mentioned earlier. Psychologically, we perceive a low price as lower quality and thus of lower value. The price we as consumers are prepared to pay is about what we perceive as “worth the money.” In this situation, a higher price can be a sales advantage too good an opportunity to pass up on.

An estimated 95% of companies today use a simplified model for pricing their products and services. You guess, use cost-based pricing or predetermined marginal goals. However, if the actual willingness to pay is included in the calculation, the profit margin can often increase by 25–40%. Sometimes even more!

This means that the price of the products can be significantly improved. Businesses and traders, many perhaps pressed under small margins, can, through such an analysis, have a more stable basis for their pricing. Profitability is increased and they have better opportunities to develop their business.

Of course, this is based on the fact that the products or services are genuine. Trying to bluff consumers by setting a high price on a substandard product or service is not going to be a success. This will quickly have a detrimental effect and damage the brand significantly.

The importance of consumers’ perceived value may not be revolutionary. However, it is a new process how this value can be investigated and analyzed. In this, behavioral science and psychology play a greater role than the classical and traditional economic theory. Pricing strategy becomes a whole new ball game, once you know what the consumer is willing to pay for a product or service.

Per Sjöfors
Founder
Sjofors & Partners
www.sjofors.com

Categories
Economics Growth Personal Development

Want to Win in Business? Test your Strategic choices with a Simulation

My former employer, BTS pioneered the use of business simulations for strategy alignment since the company was founded in 1986. Since then, they have developed more than half a million leaders in this space. They have built hundreds of simulation and experiential learning solutions for virtually all industries, which means that we have deep and varied industry expertise across our 1,000 full-time professionals.

Some of our current clients include: IBM, Microsoft, GE, Salesforce, SAP, Citi, Fidelity, JP Morgan, Unilever, LG, Coca-Cola, and others.

Why all this background? As a Hero Club Member, I would love to share this content with fellow members. Winning in Business is a powerful, flexible, 3- to 4-hour digital solution that puts users in the driver’s seat of a virtual company. In the simulation, users compete to construct and run the most profitable and sustainable company in an evolving marketplace. Over the course of 3 simulated years, users must plan for and respond to a variety of events and external pressures.

Click HERE to learn more and get a free demo of this amazing business simulation.

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Best Practices Economics Growth Leadership Personal Development

Learn about your customer’s business

Some of the best sales professionals I ever met demonstrate a strong combination a business acumen and influencing capabilities.

For the business acumen part, I asked a Senior Partner at one of my clients how did he learn about the industry, and his answer was – “With a Business Simulation Experience”. Through an Industry Business Simulation, participants:
• Understand the interdependencies in the industry ecosystem and how key players create value and influence one another
• Inhabit the executive mindset, understand industry terminology and how the industry sector business is run
• Articulate the key strategic priorities, financial levers, and challenges facing the industry
• Identify the critical decisions made on a day-to-day basis, the inputs, outputs, impacts & implications of those decisions, and how market changes implicate decision making
• Engage in informed discussions about the industry with a true appreciation of the business and a point of view on how and why market trends impact the industry sector ecosystem
• Develop an action plan to apply the knowledge and capabilities back on the job and drive results

Click HERE to learn more

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Economics Growth Leadership Personal Development

Why do you think pilots train with simulators?

The answer to this question is so simple but true. Pilots train on simulators so they can make mistakes in a risk-free environment and not die.

I believe it is the same for Business Leaders. Our simulations use an engaging board-based format to simulate a company that participants are required to manage and operate as a team. Participants increase their business acumen by experiencing business flow, functional interrelationships, and how making a decision in one area has a ripple effect across the entire business—which eventually impacts the bottom line.

During the simulation, participants are challenged by realistic scenarios that require them to evaluate business situations, apply sound decision-making, analyze the results, and learn from the conclusions drawn.

Click HERE to learn more. We would love to help