Professional Engineering

Evolution of sales 

1970s: Product innovation
Companies focused on building better products. These automatically sold because they worked better.

1980s: Focus on quality 
Innovative products became the norm, so making high-quality versions became the way to stand out from competitors. International and British Standards became important.

1990s: Adding value
Companies looked to add value to products as everybody could produce innovative, high-quality goods. Many began offering advice and consultancy as well as products.

2000s: Arrival of procurement
Procurement brings an additional commercial dimension to sales and shifts the dynamic towards efficiency.

Top tips for success in negotiating

Steve Thurlow of Huthwaite International gives his top five tips for negotiating:

1. Preparation and planning are not the same thing
Average negotiators spend most of their time preparing by gathering data about relevant issues, ranges and targets. Skilled negotiators, on the other hand, spend most of their time planning and deciding how the data can be used to their advantage during the deal. The key is to weigh up all the relevant factors and then make sure that you plan how to use them during the negotiation itself. Be creative in identifying all the options available – especially those bargaining counters that may cost relatively little but are of greater value to the other side in the deal.

2. Don’t just split the difference
Negotiation and compromise are not the same thing. It may be tempting to settle at a midway point between both parties when the pressure is mounting. But this short-term thinking is a poor tactic. Take time to consider how to gain the advantage by bargaining your way closer to your desired position.

3) Listening is as important as talking
Skilled negotiators are good listeners. Adopt a consultative style and ask twice as many questions as usual to establish the other party’s position. This helps identify each party’s priorities and keeps them clear. By asking questions you can control the direction and content of the negotiation without appearing to.

4. With supporting arguments, less is more
Skilled negotiators avoid diluting their case with lots of different supporting arguments. Use one strong argument and expand it as necessary. Only employ a second argument if it becomes clear the original one cannot be upheld as the negotiation unfolds. Using lots of supporting arguments can backfire because, if one argument is weak, the other party can use it to undermine the credibility of your position.

5. Avoid ‘fairness’
Try not to use the words fair, reasonable or generous. They are not persuasive and can be condescending. When used in a heated exchange they may even damage the atmosphere.

Building good customer relations

Over the past five years, one company has taken significant steps to be seen by customers as a solution provider instead of a supplier. As part of this transition, bearings, seals and lubricants company SKF has had to shift the mindset of the sales team, too. 

This has involved developing staff negotiation skills. Business development director Chris Rhodes explains that for SKF every transaction with each customer is different, and negotiation helps the company ensure that the value of the product is not undersold. 

He says: “Our sales team need to really understand that value and to negotiate the deal so that we can redeem as much as we can. It’s not just a case of getting paid more for something, it’s a case of understanding the value and making sure we get paid for that value.” 

Training staff in negotiation has helped to give more consistent results across the business. 

“Previously we had some people who you might call natural negotiators and some who weren’t so natural,” says Rhodes. “Now we have moved negotiation from an art form to a process. It’s much more about understanding from the customer’s position and our position.”

Staff have also learned how to develop a positive attitude about negotiation. SKF has a good retention rate among its customers and negotiates with them on a frequent basis, so maintaining long-term relationships is important. 

“Negotiation can sometimes be a hostile environment and we can only lose in that environment,” says Rhodes. “A good negotiator is able to relate to the customer and agree on the value of the solutions that we deliver, and keep a long-term relationship.”