Praise for Red-Hot Sales Negotiation ‘‘This bookisspoton.Fromunderstanding pricingandpipelines,to providingguidanceonpersonaldemeanor,ittakesacomplexart, demystifiesit,andprovidessimpleyetpowerful rulestonegotiateby. Itrings truewithmyownexperiences.’’ —AmbujGoyal,General Manager,InformationManagement Software,IBMSoftwareGroup ‘‘GoldnerandMcKeonhavean easy,believable,andenjoyablewayof writingthatsalesmencanrelateto.’’ —LennardI.Carlson,ChairmanandCEO,Modagrafics,Inc. ‘‘This bookexplainsthestepsofasuccessfulsalesnegotiationin simplelanguagewithrelatableexamplesforeachofthefoursteps. GoldnerandMcKeonrecognizetherealissues andfocusontipsand techniquestomaketheoutcomeawin-winforbothsides.After23 yearsofsellingsoftware middlewareandsolutions,Ispecifically relatedtothepriceissue.Theauthorsareabletoexplainhowtodeal withthisissueby‘synthesizing’thedealsobothsideswin.Iwas trainedbymajorcorporationsonnegotiationsskills,and thisbook containsseveralareas(forexample,powerquestionsandphrases)that werenevermentionedoraddressedbefore.Irecommendthisbookas a‘must-read’ foreverysalespersonwhowantstobuildgoodclient relationshipswhileclosing profitablebusinessforhis/hercompany.’’ —NadineM.Rosenbaum,IBMProgramManager .................16412$ $$FM 05-07-0711:15:21 PS PAGEi This page intentionally left blank Red-Hot Sales NEGOTIATION EVERYTHING YOU NEED TO KNOW TO CLOSE DEALS, BUILD RELATIONSHIPS, AND CREATE WIN/WIN OUTCOMES PAUL S. GOLDNER AND PETER MCKEON AmericanManagementAssociation NewYork•Atlanta•Brussels•Chicago•MexicoCity•SanFrancisco Shanghai•Tokyo•Toronto•Washington,D.C. .................16412$ $$FM 05-07-0711:15:22 PS PAGEiii SpecialdiscountsonbulkquantitiesofAMACOMbooksare availabletocorporations,professionalassociations,andother organizations.Fordetails,contactSpecialSalesDepartment, AMACOM,adivisionofAmericanManagementAssociation, 1601Broadway,NewYork,NY10019. Tel:212-903-8316.Fax:212-903-8083. E-mail:[email protected] Website:www.amacombooks.org/go/specialsales ToviewallAMACOMtitlesgoto:www.amacombooks.org Thispublicationisdesignedtoprovideaccurateandauthoritative informationinregardtothesubjectmattercovered.Itissoldwiththe understandingthatthepublisherisnotengagedinrenderinglegal, accounting,orotherprofessionalservice.Iflegaladviceorotherexpert assistanceisrequired,theservicesofacompetentprofessionalperson shouldbesought. LibraryofCongressCataloging-in-PublicationData Goldner,PaulS. Red-hotsalesnegotiation:everythingyouneedtoknowtoclosedeals,build relationships,andcreatewin-winoutcomes/PaulS.GoldnerandPeterMcKeon. p. cm. Includesbibliographicalreferencesandindex. ISBN-13:978-0-8144-7354-2 ISBN-10:0-8144-7354-7 1. Selling. 2. Negotiationinbusiness. 3. Deals. I. McKeon,Peter. II. Title. HF5438.25.G6417 2007 658.4(cid:2)052—dc22 2006102134 (cid:2)2007PaulS.GoldnerandPeterMcKeon. Allrightsreserved. PrintedintheUnitedStatesofAmerica. Thispublicationmaynotbereproduced, storedinaretrievalsystem, ortransmittedinwholeorinpart, inanyformorbyanymeans,electronic, mechanical,photocopying,recording,orotherwise, withoutthepriorwrittenpermissionofAMACOM, adivisionofAmericanManagementAssociation, 1601Broadway,NewYork,NY10019. Printingnumber 10 9 8 7 6 5 4 3 2 1 .................16412$ $$FM 05-07-0711:15:23 PS PAGEiv FromPaul: Tothethreewomeninmylife;mytwodaughtersJakiandElissa,who havealways beenthereforme,andtothenewwomaninmylife,Lynn Spiess,whoisshowingmethewayforward. FromPeter: TomywifeGaye:mybestfriend,mymoralcompass,andmy inspiration. .................16412$ $$FM 05-07-0711:15:23 PS PAGEv This page intentionally left blank Contents Preface ix Acknowledgments xi Part One. The Science of Negotiating 1 Chapter1. WhatIsSales Negotiation? 3 Chapter2. ThePrinciplesofWin/WinNegotiation 15 Chapter3. CreatingaSolutionThatBenefitsYour Company 29 Chapter4. PlanningfortheNegotiation 43 Chapter5. High-ImpactSalesPlanningStrategies 55 Chapter6. HowtoSynthesizeaDeal 83 Part Two. Negotiating Tactics 95 Chapter7. UsingNegotiatingStylestoGainAdvantage 97 Chapter8. PowerQuestioningStrategies 115 Chapter9. PowerCommunicationsStrategies 133 Chapter10. NegotiatingPloysandTactics:TheBuyer 151 vii .................16412$ CNTS 05-07-0711:15:24 PS PAGEvii viii Contents Chapter11. NegotiatingPloysandTactics:TheSeller 169 Chapter12. NegotiatingwithBigCompanies 181 Conclusion 193 Index 199 AbouttheAuthors 209 .................16412$ CNTS 05-07-0711:15:25 PS PAGEviii Preface Before you get started, we want to give you our perspective on what makesthis bookdifferent. First, this book is different because it is written by two great sales professionals, not one. My name is Paul Goldner, and I have been in salessince1983,firstin a computertrainingcompanythatI founded, and now in a global sales training organization that I cofounded with mycoauthorand partner,Peter McKeon. Iwasabletogrowmyfirstcompanyfromzeroinsalesand$3,000 in working capital to one with $100 million in sales in just twelve short years. We were the second largest company of its type in the world. During that period, I negotiated many a sale. There were times that I was very successful, and there were times that I was not. The good news for you is that I will share both my winning and learning (losing)experienceswithyou.Youcanlearnfromboth. My mistakes cost me plenty. You, on the other hand, can save yourselftheagonyoflearningthehardwaybysimplyreadingon. My partner and coauthor, Peter McKeon, is also a great sales pro- fessional. Peter has a great deal of experience to share as well. He is recognizedthroughouttheAsiaPacificareaasthemostdown-to-earth ix .................16412$ PREF 05-07-0711:15:28 PS PAGEix