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Negotiating power plays a major role in every type of negotiation, whether it's a labor negotiation, political negotiation, or a buy-sell negotiation.

Both the buyer and the seller have power in a negotiation. Power is each side's perception of its strength or weakness in comparison to the other. This perception of power affects the ability of each party to achieve its own goals. The more negotiating power you have in comparison to that of your buyer, the fewer concessions you'll have to make.

For each party in a negotiation, there are eight sources of power. These are:

• Need
• Options
• Time
• Relationships
• Investment
• Credibility
• Knowledge
• Skills

Just remember the acronym NO TRICKS

"N" stands for Need

The essential question here is: who needs this sale more, the buyer or the seller? The more intense the buyer's need, the more power the seller has. The more intense your need to make the sale, the more power your buyer will have.

"O" stands for Options

What are the options for each party if an agreement is not reached? A buyer who believes that your product or service is unique has no other options. Your other options consist of the other sales opportunities you have waiting in the wings. The more options you have, and the fewer acceptable options your buyer has, the greater your negotiating power.

"T" stands for Time

This refers to any impending events that place a deadline on either the buyer or the seller. If the buyer is under time pressure, it usually gives the salesperson negotiating strength. In commercial real estate, for example, the expiration of an old lease may put time pressure on the tenant to find new office space. The time factor also affects many other purchases related to the move, such as hiring a contractor, selecting office furnishings and business equipment, and so on. A deadline creates time pressure and limits the buyer's opportunity to shop around.

If you are feeling time pressure, perhaps to close the sale by the end of a quota period, your buyer will have time power. Several years ago, I had the opportunity to win my company's annual incentive vacation - a trip to Bermuda. On the last day of the year, I needed a $2,000 sale to achieve my annual quota of $3 million. I felt time pressure! I made some hefty concessions that day, but I won the trip.

"R" stands for Relationship power

How strong is your relationship with your prospect? If you have a high quantity of high quality relationships with your customers you have relationship power. But some customers may not allow you to develop these relationships. They may tell you that you can only talk to purchasing. In such a situation, you'll have a hard time developing relationship power.

"I" stands for Investment

How much time and energy has been invested in the buying process? The more effort someone invests, the more committed he or she will be to reaching an agreement. The more energy your buyer puts into a buying process, the more negotiating power you'll have. Conversely, the buyer's power of investment is enhanced when you've put a lot of time and energy into a prospective sale. If you put 20 hours into preparing a proposal, you'll have a hard time walking away from the deal.

"C" stands for Credibility

When I was selling dictating machines for Lanier Business Products, a salesperson in our Washington D.C. office, whose sales territory included the White House, sold a portable dictating machine in the Oval Office directly to the President. Subsequent photographs of the president showed his dictating machine on his desk. Lanier's credibility was enhanced by having the president as a customer.

"K" Stands for Knowledge

Knowledge is power. You have knowledge power when you thoroughly understand your customers' problems and needs and can foresee how the products or services you are offering will help them achieve those needs. If you do not have this knowledge, we suggest you attend on of our 2-day sales seminars to help you get a leg up on your competition.

Conversely, if your customers know as much as you do, or perhaps more, about the application of a particular sales solution, they're less reliant on you. A few years ago, IBM reorganized its sales forced to emphasize industry-specific expertise so that their salespeople would become more knowledgeable about their customers' businesses. IBM has 14 industry sales teams dedicated to areas such as health care, travel, and financial services. IBM recognizes that salespeople are not adding value to the buy-sell relationship unless they know more than the buyers.

"S" stands for Skill

Who is the most skillful negotiator? Buyers are making more buying decisions today, and are getting better at it. Many buyers have attended seminars to improve their negotiating skills, which means they're gaining more skill power. Today, you must constantly improve your skills, just to keep up.

For over 200 years the US Constitution has served as the system of fundamental laws and principles of our society. This amazing document has served as the cornerstone of our democracy. A reflection of our Founding Fathers' core values, the Constitution has kept our society on track since 1787, and has certainly contributed significantly to the growth and success of the United States.

What is the Constitution of your sales team?

Have you, as yet, identified and communicated your cornerstone? If I was to ask five of your salespeople to describe to me what is expected of them in areas other than sales results would I receive five different answers?

The Production Equation: B+A=R.

Behavior plus activities equals sales results. Or, another way of saying this is that every successful sale is the outcome of a series of behaviors (how something is done) as well as activities (how many times a behavior is performed).

Unfortunately, many of us sales managers try to manage results. We wait until a rep has a bad month before we decide to get involved in "coaching" them. So then, when a rep produces a bad month, we rush over and smother them in coaching trying and get their production back up quickly. Sales managers who try to manage results are like a driver of an automobile who only looks in the rear view mirror... chances are they will be surprised when they collide with something that is unexpected. Looking only in the rear view mirror is not an effective way to drive a car, but it happens to be the way that many sales managers drive their sales teams.

Sales results can't be managed, but behaviors and activities can.

To be the best sales manager you must get in front of the result, get the best sales management training possible, and put in writing your expectations of the behaviors and activities that contribute to sales results.

Think of this issue – a team without well-communicated performance standards - from your salesperson's perspective. As a salesperson, you have a clear understanding of the sales quota results expected of you, but you're unsure exactly how to produce those results. So you do what you think you should. You "make it up on the fly." Then, because nobody tells you you're doing it wrong you assume it is acceptable behavior. So you keep doing it, and form bad habits. It's an unproductive cycle.

How to Draft your Sales Team's Constitution

Think of your top salesperson... what specific behaviors does he/she do that contributes to sales success? For example, "makes at least five new business prospecting calls every day." Then, what attitudinal qualities does he/she have which contributes to success? For example, "attempts to solve problems before seeking help."

Make a list of behaviors and activities that describe your top salesperson, and then share this list with everyone on your sales team. Have each of your salespeople assess themselves on a quarterly basis against these behaviors and activities: Meets, Exceeds, Needs Improvement. Then, sit down one-on-one with each salesperson, discuss his/her self assessment, and put a plan in place to improve those.

Four Components of a Sales Constitution are as follows:

• Written
• Well communicated
• Understood by everybody
• Equally applied

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Make every single person an expert at something.

Arrange for training, coaching, and perhaps “certification” on equipment, software, processes, etc. Then make up a list of people and their special skills.

Start meetings and training sessions on time.

People who are prompt should not have to waste their time waiting for latecomers. That’s demotivating.

De-hire people not contributing to your team’s goals.

You know them – the people who have nothing good to say about anything or anybody… the ones who can suck the energy right out of the room. Keep them away from your important projects, your important employees, and your important customers. If possible, “encourage” them to take their sour attitudes elsewhere.

Acknowledge those who display initiative and take the time to train, help, mentor and develop others.

The opportunity for development is a prime employee motivator. And your “teachers” are at the very heart of that.

Hire for attitude, train for skill.

It can be tempting to fill a vacancy with someone who has the required technical skills but has questionable attitudes and behaviors. Do not give in to the temptation of adding this “warm body” to your team. Bad hires drag down the entire team.

Invite representatives from other organizations to see, firsthand, the good work that’s being done at your office.

It’s unbelievably motivating for employees to know that people from the outside are coming in to watch them perform their magic.

Create a “Wall of Fame.”

Look for people who have made positive contributions to the organization over time. Designate a place in a prominent hallway to display their pictures and a description of their contributions.

Periodically conduct “climate surveys” to stay informed of how people feel about their jobs, the type of work they do, and the quality of leadership they experience.

Share the results with everyone. And be sure to use the feedback you receive to develop improvement plans.

We hoped you enjoyed this 5 part series on Sales Management Training -- Motivating Your Team. To receive more hands-on training, please attend our next Sales Seminar.

This is the 5th and final blog post in our 5 part series focusing on motivating your team through sales management training.
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Hold a contest, for example an afternoon off of work to go golfing as a team.

Set a team goal that must be met for anyone to qualify, then set individual goals

Create an individual development plan for each employee.

Work with team members to create development plans that are customized to each person. The plans should identify things like: current and desired skill strengths; job interests; areas for development and enhancement; and strategies (training, assignments, coaching, etc.) for achieving the next step.

Respect people’s time.

If you expect team members to believe that their work is important, you have to believe it too. More importantly, you have to behave like you believe it! Don’t expect people to drop whatever they’re doing every time you need something. Instead, ask if they have a few minutes to chat. Better yet, ask for a time when they’ll be available to meet with you.

Reward initiative as well as results.

When someone tries something new, or wants to make a positive contribution, recognize their effort. Success may not be immediate, but repeated effort and initiative should count for something.

Add motivational notes to your written internal communications.

Look for opportunities to reinforce individual and team contributions, as well as acknowledge positive things that are happening within the entire organization.

Reserve an hour once or twice each month for people to come together and exchange ideas on any topic they choose.

It might be ways to improve customer service, how to enhance quality, or even where to find the best places for child or elder care. Sharing ideas enhances teamwork and energizes people.

Create games and contests that encourage healthy competition between teams.

Offer prizes for things like met or exceeded sales quotas, reduced absenteeism, improved safety days, received positive customer acknowledgements, etc. Post the on-going results for all to see. Games and contests typically energize people around a challenge. Just be certain to keep the competition positive and constructive. And look for ways to make sure that every team wins something.

Promote your key contributors.

Few things build motivation and a winning attitude more than seeing that good work pays off.

This is the 4th blog post in our 5 part series focusing on motivating your team through sales management training.
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Have an important decision to make? Let the team decide!

Or at least invite them to consult with you. They are, after all, the ones who will feel the impact the most. Besides, you’ll probably end up with a better decision – one that team members will support because they helped make it.

A Crash course on motivation:

Words that motivate others

• "That’s an honest mistake. Let's focus on what we’ve learned"
• "Let me pass along what I have learned"
• "I’m really glad you’re here"
• "You did a great job because…"
• "What do YOU think?"

Manage your negative emotions and anger.

Nothing can be more damaging to team morale than losing your temper in a group setting. The next time you feel angry do one of the following: take a deep breath and count to ten; take a walk outside; or simply go back to your work station and look at a prized photograph. No matter how angry you become, keep it inside.

Follow up on agreements.

When someone commits to do something by a certain date, make sure you follow up on it. If it’s done, recognize the achievement. If it’s not complete, find out why, and see what you can do to help it reach completion. You boost morale when your bias is to help rather than discipline!

Look for opportunities to show interest in all team members.

Ask about their life outside of work. Make an effort to learn about their families, their hobbies, their recent vacation, etc. Inquire but never pry. Keep track of names, dates, and events that are important to them, such as birthdays and anniversaries of employment with your company. Showing your team that you care about them as people is one more way to build team sprit. When the sprit is strong, the motivation follows right along.

Invite your boss into the recognition process.

Next time someone on your team does something really special, tell your manager. Ask him or her to write a note to that person. Not only does this make the employee feel good, but it also keeps the boss informed of the good work being done by people in his or her area.

Always tell people “why” something to be done is important.

There’s a much better chance that people will be motivated and give their enthusiastic support if they understand reason behind a goal, assignment or decision.

This is the 3rd blog post in our 5 part series focusing on motivating your team through sales management training.
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Keep a written list of your teammembers’ “bad boss” behaviors.

Refer to it often and consider things you may be doing that are similar. Do whatever you can to minimize or eliminate those demotivating behaviors in the future.

As Ken Blanchard, author of “The One Minute Manager says, “Catch people doing something right.” Take time to recognize the contributions of the people who are there every day, doing a great job. Don’t take them for granted by missing opportunities to let them know how important they are to you and your organization.

Involve your best people in hiring decisions.

Ask team members to participate in interviewing new-hire candidates, when appropriate. This gives your producer a say in how the team works – a significant involvement in something that truly matters. Make sure you provide pre-training on effective interviewing. Such preparation not only gives team members a new skill, but also helps them to help you choose the right candidates for the team.

Build a team culture.

Demonstrate respect for your team members – and confidence in their abilities – by having them sit in on your important organizational meetings. You might even consider having them represent you when you’re unable to attend. Besides sending an “I trust you” message, this gives them yet another opportunity to learn and grow.

Increase the job responsibilities for those who have proven their ability to handle more.

Once someone has mastered a job, look for ways to increase their responsibilities and the depth of their tasks. Involve them in that process. If the job is not expanded, or if there is no challenge to stretch, individuals are likely to become bored and less motivated over time.

Encourage team members to enhance their own job descriptions.

Make it clear that the descriptions must be in line with the goals of the organization, but give people the freedom to add a personal touch.

Turn failures into teaching lessons.

A failure is a failure only when we don’t learn from it. When people make mistakes, encourage them to share their experiences in order to help others avoid similar problems. This can be a great motivational tool because you focus on learning rather than assigning blame. Just remember that it takes guts to admit mistakes – especially in front of others. So be certain to thank each person for his or her courage.

Leadership is easy when your stock price is high. Be tough during tough times. As Vince Lombardi said: “It’s not whether you get knocked down, it’s whether you get up again.” To keep your team motivated, you need to show resilience, recovery, and “contagious enthusiasm” for the mission of your team – especially when your job challenges are significant.

Help others on your team develop by delegating the lead on certain activities and projects. Most of us like “being in charge” – at least some of the time.

Get in the habit of inviting team members to challenge your ideas.

Encourage them to constructively (and positively) criticize your plans. Make it okay for people to disagree with you. This lets people know you value their input, and ensures that implemented ideas will be well thought out. By giving your people permission to disagree encourages teamwork, which, in turn, helps motivate everyone on the team. Do remember, however, when someone disagrees with you he/she should raise the issue with you in private, instead of blurting it out during a team meeting.

Solicit candid feedback.

Every once in a while, ask people for their feelings about the culture and the motivational climate of your team. Pay attention to team members’ perceptions, act on the feedback you receive, and let the team know what you have done (or will do) in response.

This is the 2nd blog post in our 5 part series focusing on motivating your team through sales management training.
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Listen to others.

Listening shows respect… that people and their ideas are important to you. When people know you're willing to listen, they will share their ideas as well as their frustrations. Listening enables you to build trust, which is essential for creating an elite, high-performance team.

Clarify your expectations.

Meet with individual team members and ask each to describe his or her understanding of your performance expectations (as well as behavior and activity expectations), confirm and clarify, as appropriate, to ensure that you're "on the same page" with the employee. The more people know what you expect, the better they'll be able to contribute and help the team succeed … and the fewer de-motivating surprises there will be for both you and your employees down the road.

Hold regular "state of the business" updates.

Try to keep everyone informed onwhat's happening within the organization (future plans, new productsor services, company results, etc.). Make sure people do NOT feel"kept in the dark" about the organization as a whole.

Create opportunities for team members to socialize after hours.

For example, install a softball (or other sport) league. Even better, choose a community service involvement project with a group like Habitat for Humanity.

Play the “Worst Boss” game.

Invite your team to list the behaviors of their worst (unnamed) bosses. Have them describe what their past bosses did (or didn’t do) that demotivated their teams. Make it clear that if they see you emulating a “bad boss,” they’re free to tactfully let you know.

This is the 1st blog post in our 5 part series focusing on motivating your team through sales management training.
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Step 1: Is your “Stuck-in-rut” rep also one of your “Bell Cows”?

A sales team typically consists of a few leaders and lots of followers. So does a ranch, where the herd follows along behind the one cow with a bell around its neck.

Many salespeople, especially those with less experience, emulate the example of the bell cows on your sales team. If one of your bell cows is a senior sales rep stuck in a rut, you must act to improve the situation! Otherwise, everyone else will follow the bell cow’s meandering pace.

Step 2: Get into each salesperson’s head.

Don’t use a “one-size-fits-all” strategy, because every salesperson is different, with different needs, commitments, motivators, etc. You must build a relationship with each individual.

Step 3: Develop a motivation improvement plan for each individual salesperson.

Salespeople who have “lost the fire” are salespeople who have lost sight of their goals, so you must help them see their future more clearly. To create your plan, ask good questions, and really listen. Ask: Why are you selling for a living? What is it that you want, that you don’t currently have? Where do you want to be in 24-36 months? What motivates you? For example, one salesperson may want to buy a house, another wants to join a golf/country club, a third wants your job. Three very different goals, but all could be achieved faster by exceeding quota.

Step 4: Remove obstacles

Are there any barriers to performance that our organization has created for you? If so, how can we remove them (the obstacles)?

Step 5: Improve your energy and desire to excel. Remember, the speed of the leader determines the rate of the pack.

A few more successful strategies include:

• Pay more attention to them. Ask your boss to talk to him/her, 1 on 1.
• Sometimes you can appeal to their competitive instincts by creating a contest against another division of the company, and give the salesperson a stretch goal to shoot for.
• You can recognize their achievements more frequently.
• Delegate the delivery of a few sales meetings on a subject such as prospecting (which they, in all likelihood, need a refresher on).
• Explain to them how their role as a senior tenured salesperson fits in to the big picture and why it’s so important to team results.
• And, lastly, challenge your senior salespeople to “step-up.” Let them know that you expect much more from them, and are counting on them to increase sales.