o matter how good our poker face, we all wonder after we sign on the dotted line whether we really got the best deal. Sure, the dealer says we took everything he had to give, but after all, he’s playing poker too.
In fact, as many of us have learned, it can be all too easy to get so fixated on the game when you’re buying machinery, you lose sight of what you wanted in the first place. You just want to win.
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There’s a second mistake too, and it can be just as serious as the first. It’s the mistake that says the only place you can learn to be a good negotiator is at your parents’ knees. The books in the Resource box with this article are a good start.
Farmers are already quite good as negotiators, says Doug Arnold, a salesperson at Expressway Motors in New Hamburg, Ont. Arnold should know. He has spent 17 years in agricultural sales and another 21 in vehicle sales where a quarter of his customers are farmers.
“They’re good at cost control,” Arnold says of the farmers who he sits across the table from. “They have to be.”
Still, the science of negotiation says that essentially everyone can improve their negotiating skills, at least a little, and everyone can control the negotiation process so they’re more confident at the end of the day that they got the right deal.
There are different philosophies behind negotiating but the goal is to come to an agreement with which both parties feel comfortable, says Kelley Robertson, president of Robertson Training Group, a Burlington, Ont. company that provides training to sales people.
“It’s important to realize that both parties have different agendas but they can work together to reach an equitable solution,” Robertson says. “If the seller is going to stay in business, they must also make a fair profit.”
Similarly, in Arnold’s daily life on the dealership floor, he tries to play out what he sees as a win-win philosophy of negotiating. Even before he starts, Arnold says, he sets his objective as finding a deal that is good for both the buyer and the seller. “Both parties have to feel they got a good shake,” Arnold says.
For the buyer, preparation is key to the negotiation, says Robertson. Know the prices, features, delivery terms, etc. before you try to make a deal. With the Internet, it’s possible to get a lot of information ahead of time. This can help a person narrow down their choices. “However, if a customer doesn’t know what they need it’s the salesperson’s job to walk them through that process,” says Arnold.
Practising the negotiating process before buying can also be an important part of the preparation. If you are making the purchase with a partner, discuss your strategies and how you’ll respond to different scenarios ahead of time. “The idea is to have the brain, mouth and ears working together,” explains Robertson.
Look at the whole package, advises Robertson. “Price is important but it isn’t everything,” he says. Delivery, service and support are important factors, too. People are usually willing to pay a little more for good service, agrees Arnold.
Arnold recommends people be up front with the sales person about their needs. The customer is not going to be happy if he or she doesn’t get the right equipment for the job to be done, he explains.
The Total Negotiator
Getting to Yes —
Negotiating Agreement Without Giving In
by Roger Fisher, William Ury and Bruce Patton (1991).
Having realistic expectations is important. There isn’t as much room to negotiate as there was even five years ago, says Robertson, who negotiates on every major purchase he buys for himself. “It’s always worth it to negotiate on major items.”
Timing is also crucial. “Leaving purchases to the last minute will make it harder to walk away,” explains Robertson. “You have the power to walk away if time is on your side. This gives you more leverage.”
Having time on your side helps to keep emotion out of the negotiation process — an important piece in any negotiation strategy.
Both buyers and sellers have “walkaway power” but sellers are loath to let a buyer walk away once the negotiation process has begun, he adds. “Buyers can use this to their benefit.” If you’re buying a new vehicle you may have more negotiation power during the last few days of the month if the sales person has sales quotas to meet and it has been a slow month, adds Robertson.
A reputable dealer or sales person is your best bet. A strong, healthy long-term relationship between buyer and seller is best for all, asserts Robertson. Arnold, who takes a long-term approach to sales agrees. “I want my customers to be happy so they will come back again and tell their family and friends about me.”
It’s important to understand exactly what you’re buying so there are no surprises. Ask lots of questions so you are clear on what’s involved, suggests Arnold. And make lots of notes. Don’t rely on memory. “It’s easy to get confused about details, especially if comparing different products from different companies.”
Once the negotiation is complete, Arnold recommends making sure all of the details are spelled out clearly to avoid any confusion afterwards.
One thing that people often don’t realize, says Robertson, is that the negotiation begins with the first contact between the salesperson and the buyer. “If you’re too aggressive right off the bat you’ll put the sales person on the defensive,” he explains. “It’s better to be neutral and open. Being ultra-aggressive is not necessarily going to get you the best deal.”
Robertson gives me one last bit of advice. There are no hard and fast rules of what will work every time, he says. “Every scenario is different,” says Robertson. “It’s a dynamic between two human beings.” Don’t be afraid to negotiate, adds Robertson, but you need to be confident to be effective. CG
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