We recently completed an order in which we sold 50,000 books to a pharmaceutical company. The book was about helping patients maintain a nutritious diet while going through cancer treatments. The company purchased the books to give to doctors using their products, who in turn would give the book to their patients. The order was three years in the making and required several meetings to negotiate the sale, each requiring strategic forethought.
Of course, not every sale requires significant pre-planning. When seeking a small order for 100 books, the stakes are low, and you can pivot with relative ease from one tactic to another as your counterpart makes moves. But when you enter more complex discussions about large-quantity, nonreturnable sales, the stakes are higher. Here are some techniques we used and learned in the process of selling 50,000 books.
1. Reduce the potential pressure.
There are two tactics to help you do this. One is to create a best negotiation outcome (BNO) and the second is to define the best alternative to a negotiated agreement (BATNA). The BNO is a list of the terms most favorable to you while dealing. These could be a large discount, minimal customization, long lead time, no returns, customer-paid shipping, and advance payment. The key is to know which you are willing to negotiate and on which you will hold firm.
The BATNA is a list of additional prospective buyers. If you know you have other people to whom you could sell books, there is less pressure on you to take an untenable order on which you could lose money.
2. Understand the two factors present in every negotiation for a large quantity of books.
These are 1) tension and 2) trust. Reduce tension with your professional consulting skills, not trying to push a decision “down their throats.” Build trust and rapport by helping them reach their objectives while at the same time fulfilling your needs.
3. Create allies at all levels.
During the negotiations, one of the key decision-makers left the company. Fortunately, he was replaced by someone familiar with (and supportive of) our proposal. That is not always the case. When confronted with new participants in the process, move quickly to bring them up to date with the history of your negotiations and the benefits of using your book as the solution.
4. Actively listen to people as they speak.
Ask questions and listen attentively to the answers. Demonstrate that you understand the inquiring person’s questions and concerns. Show that you are all on the same side, trying to reach your prospects’ goals. Use the pronoun “we” to make them think you are both in the lineup, working against their competition as a team.
5. Employ positive leverage.
Do not perceive yourself to be at a disadvantage in a negotiation with an important buyer because the order represents a small piece of the buyer’s business. First of all, they would not have invited you in if they were not interested. They look at an investment in using your book as a promotional item that could generate millions of dollars in new business for them. And if you are working with new product managers, they may be very interested in implementing a successful marketing campaign to advance their careers. Your proposal then takes on a much more important implication.
6. Know your competition.
When selling through retailers (bookstores or others), you are competing against books nearby on the same shelf. In corporate sales, you compete against other promotional items such as coffee mugs, T-shirts, or umbrellas. Know the costs of those items in relation to the cost of your book when printed in large quantities.
7. Consider if and how to significantly alter the scope of the deal and take the focus off the terms.
If you are only discussing the price and delivery date, the buyer may choose the umbrellas. But if you convince buyers that your book can be used in any weather, cannot malfunction, has pass-along value, is durable, engaging, and can reinforce other campaigns, they are more likely to give you the order.
8. Be patient.
It takes time for a proposal, presentation, and negotiations to unfold; in this case, about three years. The purchasing process in large companies can be ponderous. Let the system unfold without trying to force the issue. A factor contributing to a lengthy decision process is that corporate buyers must go through a formal purchasing process. They can’t make decisions like an entrepreneur would because they have to talk to their bosses and plan the timing to coincide with budget periods or product launches.
9. Do not move too quickly.
There will be times when all the details seem to fall into place and your enthusiasm leads you to accept an order before you have thought it through. Can you really deliver 50,000 books on time, with the requested customization at the agreed price? Is there a penalty if you do not? Can you fulfill an additional order quickly if the initial quantity moves faster than expected? Before you sign on the dotted line, make sure you can do all you promised.
When the deal is finally sealed, the prospect has now become a customer. You are officially on the same team. However, the sale is not yet complete. In some ways, it is only the beginning. A 50,000 book order is not complete until our customer places another order. And that is in the works now.