Know When To Walk Away From A Deal

Writen by Dave Lorenzo

There are times in business when you need to walk away from a deal. This is a tough thing to do. I hate doing it. It takes money out of people's pockets and it makes me sick to my stomach – but sometimes you have to do it to be successful. Here are three times when it may be best to walk away from a piece of business:

When it compromises your integrity. If you have to do something that will make you feel dishonest, unethical or immoral to get the business or to fulfill you agreement, you should walk away. In the end a person's character is demonstrated by what he does when nobody is looking. If you don't feel good about it, you should not do it.

When you sacrifice the long-term potential for a short-term gain. If you need to mortgage your future for the instant gratification of an immediate deal, you should walk away. Business strategy is about playing the "long game" that is developing relationships that last. A short-term solution that damages a long-term relationship is bad business.

When you question the intentions of the other party involved in the deal. If you think the other party is "up to no good" or setting you up for failure you should walk away. If you know that the other party is out to harm you and you move forward, you are asking for trouble.

Walking away from business is horrible. It is a rare thing. The best thing you can do is set your guiding principles (things that you won't compromise, such as the items above) and stick to them.

David Lorenzo has more than 20 years of business experience as a successful corporate executive, entrepreneur, strategist, author, and speaker. He has worked with and mentored some of the world's most successful businesspeople while helping lead many large organizations to unprecedented success. His latest book is titled: Career Intensity: Business Strategy for Workplace Warriors and Entrepreneurs.

Mr. Lorenzo's experience in starting new business enterprises and repositioning under-performing business units, along with his ability to implement innovative performance improvement solutions, makes him one of today's most sought-after trusted advisors.

Mr. Lorenzo is a participant in the Wharton Fellows Program at the University of Pennsylvania, a management think tank that meets regularly to analyze and address timely business issues. He received his MBA from the Lubin School of Business at Pace University, and he received a Masters of Science in Strategic Communications from Columbia University in New York City.

Dave's blog is http://www.careerintensity.com/blog.

The Book Read Negotiation Made Simple

Writen by Lance Winslow

Negotiation made simple indeed, no this was not an actual book I bought this week, although there is no doubt someone has written such a book. The fact is that negotiation is not so simple and until you have done lots of negotiation, you really are not that good at it and it is not so simple. You see, there are so many little tricks that are used in negotiation. Simple psychological tricks of the trade and when it is all over if you are not so good at it, you think to yourself, what just happened.

Obviously in a negotiation you much perform well for your team or your own interests and if you do not have that mindset well you should not be there. The other team certainly does and they may do whatever it takes to serve their will using every trick in the book really. So, best to be prepared, but how do you prepare for negotiation?

Indeed you need to find out all the true desires of the other party. Perhaps they want fame, credibility, awards and it is not all about money? Perhaps they have other motivations that you have not considered. If you know what these other things are you can appeal to their psyche and get what you want insuring that they come out looking good and get that recognition they are looking for. Consider all this in 2006.

"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/wttbbs/

Effective Negotiating The Key To Sales Success

Writen by Sachin A

No two persons agree on all things. When people come together to work out a deal, they try to maximize their benefits and minimize their costs. Each person places a different value on individual elements of the deal.An effective negotiation is not just about making people see things from your point of view, but it is also about converging two different views to a point that is perceived by both parties as mutually beneficial. The art of negotiating is the backbone of a successful sales campaign.

Focus On The Customer - Show Him The Money:

The customer is not bothered about how badly you need to make the sale to meet your monthly target. He is more bothered about fulfillment of his needs and getting value for his money.

Talk about the customer's benefit. Don't tell your customer about the latest technology in the car's engine - tell him how this new engine saves him fuel and time.

Know Your Competition:

Knowing your product is not enough. You must know what your competition is offering. You don't want to end up staring at the customer, when he says your competitors are 20% cheaper. Have your answers ready. Give him valid reasons for your higher price.

Don't Waste Your Time With People Who Don't Matter:

When dealing with an organization, learn to prioritize. Don't waste your time explaining the secretary why your power tools are good. Save your time and energy for the decision maker. Try to get an appointment with "the boss". If you can't get one immediately, try for a later one, else move on. The secretary is not going to buy your tools.

Exploit The Copycat Mentality:

Humans have a mentality to copy what others are doing successfully. If a person's competitor or acquaintance is using a product, he may be tempted to use the product too. Keep your references ready and tell him how others have greatly benefited from your product or service.

Get Them To Agree:

When a person agrees to something you are saying, he subconsciously creates a positive frame of mind towards your offer. Getting the other person to say "Yes" on various occasions brings both of you on the same side - with the same goal.

Your Negotiating Strength Lies In Your Uniqueness:

If it is easy to find someone providing the same service or product that you provide, your negotiating potential is reduced. The more unique your offer, the greater negotiating powers you have. Always make a list of points which differentiate you from your rivals. Sometimes people buy things just because they are different from what most other people are using.

Use Time To Your Advantage:

Every one of us has been to a stock clearance sale. When the merchant runs out of time to sell his stock, his loses his pricing power.

Customers use this tactic on sellers and give a deadline to make a decision on price and terms. The person who is short of time is always at a disadvantage. Never allow yourself to be trapped in a "time limit" trap. Even when you are short of time, don't let it be known to the other person.

On the other hand, a person's urgency to get something done can work in your favor. If the other person is in a hurry to get things done, you can be assured that he will be more willing to bend than he would in a normal situation.

A word of caution - never exploit the other person's urgency to such an extent that it makes the deal grossly one sided. You may get what you want one time, but such deals have a negative impact on your reputation and future business. A win-win situation is always desired.

Price Is Not Everything - Terms Matter Too:

Terms of service are as important as the price itself. An example could be the loans and mortgage industry. Companies are able to charge higher interests rates than competitors by allowing flexible repayment options. Companies offering freebies with their products are compensating a higher price with friendlier terms. Create a balance between the price and the terms - when price is your weak point, offset it with better terms.

"The Policy" Tactic:

Since childhood, people are taught that rules are not to be broken. At subconscious level most of the people carry a perception that it is their duty to follow all rules. You will be surprised how easily people give in when they are told that the terms which they expecting are against the company policy. Salespersons always keep a printed price list with themselves. Those few black words printed on a white paper add authority to the salesperson's arguments and send the message that it is not within their power to alter the terms.

Keep Your Last Price For The Last:

Most buyers have a tendency to ask for a lower price than offered. If asked for "the last price", quote something more than the actual "last price" which you are willing to give. It doesn't matter if initially you offer a price 2% lower or 20% lower - buyers will ask for a further lower price in both cases.

The Final Gambit - Say "No":

Risk taking is an essential ingredient of success.

Agreeing to customers' terms all the time weakens your image in the market. Walk out of the deal if it doesn't seem profitable. If the customer gives in to your terms, you win a profitable deal. If you lose the customer, why repent? He wasn't a profitable customer anyway.

Sachin A. is a freelance article writer and specializes in articles that require extensive research. Check out his work at http://www.rightarticle.com