Streamline Vendor Negotiations with airSlate SignNow's Deal Flow CRM in Vendor Negotiations

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knowing how to negotiate can literally mean the difference between making a couple thousand dollars and millions of dollars so in this video I'm Gonna Give You step-by-step breakdown on exactly how you need to negotiate from start to finish this is the only negotiation video that you absolutely need to watch so let's go ahead and get started now recently I've been doing a lot of sales and marketings for clients the way I've actually been charging is by asking for a percentage of Revenue meaning if a company does multiple seven figures in Revenue I'm literally asking for a percentage of all of that Revenue not profit but Revenue in my particular situation these days I need to negotiate higher percentages of Revenue because the revenue is in the multiple seven figures so obviously I want the biggest cut possible while delivering my marketing and sales services so literally one percent of multiple seven figures can mean a lot for you guys watching this right now so I'm gonna give you my process when I negotiated these deals and walk you through step by step on exactly how you can do this same whether you're negotiating for a percentage of Revenue maybe you're negotiating a commission maybe you're negotiating a fixed price it doesn't really matter because the fundamentals of negotiations are going to be the exact same thing now the first step of negotiations in my personal opinion is how you actually approach the negotiation see most people actually feel like they're fighting against somebody thinking that it's US versus them right but reality what you want to do is you want to come in with a win-win mentality so when I negotiate with somebody it's not like I'm trying to shark them it's not like I'm trying to take everything on the table I'm trying to get a good deal I'm trying to make them feel like they got a good deal and by the end of the deal we're gonna shake hands we're gonna both be happy now you might be asking well how is that possible how can both sides Be Happy doesn't someone have to lose not necessarily right because for my particular deals typically going to be long-term Partnerships so I'm not trying to snake anyone I'm not trying to take their money and disappear I'm trying to work with them over multiple years if possible right so that's the first thing having the approach that it's a win-win situation and you want both sides to walk away happy and here's exactly how you can do this the first step is you you have to know how much someone is willing to pay for your products and services so for me for example if it's a percentage of Revenue I'm just going to give an arbitrary percentage let's say that I'm looking for 20 of Revenue my minimum I'm willing to accept is 15 right these are arbitrary numbers now they don't know that I'm willing to accept 15. so I'm going to go in and come in with 20s right so I'm purposely going higher than what I originally am willing to accept now the thing about negotiations if you have to understand both sides are not telling each other the full truth now I used to feel like people were deceiving each other but then I just realized that's just how business goes nobody's going to tell you exactly the price they're willing to take you have to negotiate and find something that kind of meets in the middle right what you want to do is you want to go a little higher than what you actually want so if you want 15 ask for 20 ask for 22 but just know whichever percent or whatever price that you come in with you have to have some ammunition and explanation to why that actually makes sense because if it doesn't make sense to the other person they're gonna think of it as disrespectful High maybe they're not going to want to work with you because they feel like you're trying to take advantage of them and how you actually find that number is you go around the industry you ask your friends you ask different colleagues to see what other people are willing to pay you can kind of find a range of what you're able to get away with right and so you always want to play on the higher side because you have to understand people will typically negotiate you down sometimes they don't negotiate you down and they think it's a fair deal and boom maybe you're going to get that 20 but usually they're going to be like ah 20 is a little too high how about we meet in the middle how about we do 18 and then we have this whole negotiation right whether you're going for a percentage whether you're going for a fixed fee understand you got to Anchor high and just expect them to lower your price and you might be wondering you know is there a rule of thumb is there a percentage not necessarily because it really depends on your ability to storytell it really depends on what's common in the industry right so like if you're charging let's say ten thousand dollars per year for a software could you go twenty thousand dollars yeah well it depends on how much information the other person has if they know that other guy's getting it for 10K then they're gonna want 10K too but they have no idea then maybe they'll accept 20 right so you can go up by 100 you can go up by 50 you can go up by 70 it really just depends on what information you believe the other person has now so the next step of the process is this once you actually give your price right let's so let's say I'm gonna charge 20 but I'm willing to accept 15 and I'm willing to accept anything between 15 and 20. what's gonna happen next is this the other side is going to say my price is too high and they're going to try and negotiate me down and what I want to do is I want to make them feel that every time they negotiate a percentage now they have to give me something back right let's say they want to negotiate from 20 to 17 I'm gonna be like well you know that's a little steep for me that's that's a really a big discount now if we were to do that is it possible that I de-risk myself a little bit and maybe take an upfront fix fee this is the beauty of anchoring High when you anchor High what ends up happening is the person wants to lower your price but you can't lower a price just for free the person's not going to say oh I want 17 because I want 17. usually they have to give some kind of reason and usually that reason it's not going to be very good so to make it easier for them to lubricate that deal right you want them to give you something whether it's going to be better terms for the deal for you maybe you're going to make more on the long-term back end maybe you're going to get an upfront fix fee to de-risk yourself to pay for your labor or maybe you can say something like hey you want this deal to go on for three years instead of two but then you'd lower the percentage for them in order to do that right so you always want to ask for something every time somebody lowers your price don't let them ask for these things for free you know ask for something now the whole key to making this work is actually quite brilliant the key is to make it feel that every time they lower your price you're gonna feel some kind of pain because when they see you experiencing pain they're gonna be like ah damn like you know this is really hurting them right because they don't know what your situation is they don't know if you have employees that you have to pay they don't know that that one percent that they're taking off is someone's salary right they have no idea but if you make them feel this way and then sales is a very emotional game then they're going to negotiate a lot less harder than they they would have if they believe that this is nothing to you right if you're negotiating against somebody and you feel like this person has just so much money and that whatever you're negotiating with is just like pennies to them well you're not going to feel bad if you negotiate really hard because you think it's just like 0.1 percent of their net worth anyways right but if you really felt that damn you know this is really going to make a big impact on this person's life then you're gonna be a lot more hesitant to negotiate harder now what is the actual truth nobody really knows right because that's why everyone keeps their cards close to their chest it's almost like a game of poker now the thing is some people might be watching this and you might be thinking oh isn't that deceptful well literally if you're gonna go like let's say you know rent an apartment or something like that the real estate agents are doing it to you the landlords are doing it to you is it fair they're doing it to you not necessarily but they will do it anyways and they're not going to tell you the truth and they're not going to tell you anything actually they're just going to give you a high price and hopefully you say yes so that's the way the world works so you got to learn how to play the games if you want to be able to break them okay so what typically what happened next is that you lower your lower you lower your price and then you finally meet somewhere in the middle typically where both sides are happy right the key here is that because you anchored them high you're happy because you're in that range of what you're willing to accept anyways they're happy because they feel like they got a good deal by negotiating your price down so when this person goes to their friend goes to their spouse goes to their business partners and they say dang you know I negotiate it's Patrick's price from 20 all the way to 16 four percent off what a great deal but little did they know I was actually willing to accept 15 but because of that Dynamic of starting from 20 and then making it very painful to go to 19 then 18 then 17 then 16 and and finally making them feel like they got a really good deal that's pretty much how it goes so the other person is going to walk away really happy I'm gonna walk away really happy and everybody wins right so at the end of the day you know when it comes to negotiations what's actually really important is how people feel right so let's say if I want to charge someone 20 I was hard stuck I'm gonna charge this guy 20 if I I could make this person feel like I'm not going down and I'm the only option thing have and they're probably going to take it but if I value the relationship and I want them to be happy long term and I want them to work with me I'm willing to not do 20 I'm willing to put my price down in order to have a better long-term relationship right so just because you have the sales ability and persuasion ability to get a certain price that's very beneficial for you it doesn't mean you should always do it because you got to look at how the relationship will play out in the long run right and sometimes you know they might figure out like damn that guy really shocked me and they won't want to work with you again and maybe they'll tell their peers don't work with Patrick because he's going to shock you right so you have to always keep in mind of what information people will get in the future who will they tell and how that will affect you in the future as well but if you have a clean reputation where everyone loves working with you and yeah you negotiate but everyone settles everyone's happy when they walk away that is the key so in the event where one or more people are not happy with the deal this means a deal cannot be done so this comes some kind of blocker or challenge that prevents both sides from away happy the first thing you have to understand is this it's okay to walk away from a deal so you gotta have that abundance mentality where this deal goes away you'll find another right if this business partner goes away you'll find another the moment you like accept something that you don't feel is right for you that's when you're at a disadvantage now there are situations maybe there's literally no other option that's what you have to do and I totally understand that but in most particular situations especially if you're doing like B2B sales there's plenty of more customers to go around so there's no need to take a very low deal just walk away and when you walk away that gives you more power and then also gives you more negotiation power than when the other person knows you're willing to walk away one really important thing that I thought of right now is that sometimes a deal takes a very long time maybe it'll take you weeks maybe it'll take you months or multiple months right and even if that's the case it doesn't mean you should take the deal just because everyone spends so much time on it if it's not good for you just walk away and so that's exactly how I negotiate my deals hopefully you got some value out of it if you did enjoy this video make sure to check out my masterclass sales legacy.com where we teach you everything you need to know about persuasion pitching negotiation and sales with that said my name is Patrick dang and I'll see you guys in the next one