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Advice You - Strategic Negotiations - Better Relationships - Better Deals
Are you getting the results you want from your sales organization? If not, it could be possible that your sales force’s negotiation skills need sharpening.
Negotiation is part of each step of the sales process, not a one-time event. It begins prior to the first sales call and ends with customer recognition of the value your
Negotiation is part of each step of the sales process, not a one-time event. It begins prior to the first sales call and ends with customer recognition of the value your
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
product or service brought to his business. Successful negotiating, then, requires the right mindset, the right tactics and a keen understanding of the pitfalls along the road to closing the deal.
Representing the Sales Performance Journal, business journalist Jennifer LeClaire talked with Dan Ball, a Miller Heiman
Representing the Sales Performance Journal, business journalist Jennifer LeClaire talked with Dan Ball, a Miller Heiman
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
Sales Consultant based in Atlanta, Ga., who works with several Fortune 500 clients in the region. Ball shed some light on his successful approach to negotiating by communicating value every step along the way.
Sales Performance Journal: What is the proper mindset going into successful negotiations?
Dan Ball: You nee
Sales Performance Journal: What is the proper mindset going into successful negotiations?
Dan Ball: You nee
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
to go in with the mindset of trying to maximize not only the value that you get out of the relationship, but also what the customer gets. You also need to go in knowing what your desired outcome is.
SPJ: How does the salesperson break the ice, so to speak? What is the best strategy for breaking down those walls of resis
SPJ: How does the salesperson break the ice, so to speak? What is the best strategy for breaking down those walls of resis
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
tance or overcoming salesperson stereotypes at the onset?
DB: Have the best interests of the customer in mind--as well as your best interests. Make sure your product or service is a good fit and meets each buyer’s interest. Be sincere and remember, people buy because they believe what you’ve told them. As soon as you sh
DB: Have the best interests of the customer in mind--as well as your best interests. Make sure your product or service is a good fit and meets each buyer’s interest. Be sincere and remember, people buy because they believe what you’ve told them. As soon as you sh
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
p the product or perform the service, they consciously or subconsciously check back to see if they got what they paid for. Make sure they see the value in what you’ve sold.
One of the key things to remember is that negotiation is not an event in itself. It is a process made up of a series of meetings. Communicating the valu
One of the key things to remember is that negotiation is not an event in itself. It is a process made up of a series of meetings. Communicating the valu
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
e of your products and services throughout the sales cycle can have a huge impact on negotiations. Negotiation actually begins prior to your first sales call, and doesn’t end until the customer has realized the value of the solution that he bought from you and its positive impact on his business.
SPJ: How do you create t
SPJ: How do you create t
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
he perception that you are working with the buyer as opposed to against the buyer?
DB: Throughout the sales cycle you are trying to uncover the interests of the customers and what they are trying to fix or accomplish, or, in some cases, avoid. You are trying to understand the buyer’s personal and business drivers. The
DB: Throughout the sales cycle you are trying to uncover the interests of the customers and what they are trying to fix or accomplish, or, in some cases, avoid. You are trying to understand the buyer’s personal and business drivers. The
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
EO is looking for something different than the production line manager. What are they tasked with? What are their goals? How are they measured? Cost will always be an issue but it certainly shouldn’t be the deciding factor.
SPJ: What are a couple of common negotiation pitfalls and how do you avoid them?
DB: Not unde
SPJ: What are a couple of common negotiation pitfalls and how do you avoid them?
DB: Not unde
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
rstanding the business impact your products and services can make on the customer’s business. It’s a mistake to continue pushing product. You need to sell the business solution.
Delta recently went through negotiations with its pilots. The airline was trying to reduce pilots’ salary because it needed to cut costs to stay in
Delta recently went through negotiations with its pilots. The airline was trying to reduce pilots’ salary because it needed to cut costs to stay in
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
business. On the other side, the pilots were looking at how pay cuts would impact not only their salary, but also their retirement package and other benefits. Both Delta and the pilots gave a little and got a little to preserve the pilots’ benefits and the airline’s future.
SPJ: When is positional bargaining, like haggli
SPJ: When is positional bargaining, like haggli
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
ng, appropriate and when is it a big mistake?
DB: Bargaining and haggling are pitfalls. The other party may come into an interaction with a strong demand or position. You can’t negotiate a position, but if you understand the drivers behind the position you can develop solutions during the negotiation for the underlying
DB: Bargaining and haggling are pitfalls. The other party may come into an interaction with a strong demand or position. You can’t negotiate a position, but if you understand the drivers behind the position you can develop solutions during the negotiation for the underlying
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
problems that are causing people to take that position. Discovering interests behind their position leads to finding common ground on which to agree.
SPJ: What types of issues cause people to take certain positions?
DB: It comes down to what they think the solution should look like and not being willing to look at a
SPJ: What types of issues cause people to take certain positions?
DB: It comes down to what they think the solution should look like and not being willing to look at a
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
ternatives. When people are going to buy a car, for instance, they go on the Internet and do research. They find out what is the manufacturer’s cost and add a margin. That’s what they are willing to pay. They have made an assumption as to how much profit they will allow the dealer to make on that sale. They take a position.
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
But if they only buy the car on price, they may be surprised when the service department is poor. So the salesperson needs to understand and communicate the value he brings and justify his price based on his impact on the business.
SPJ: How does the salesperson protect against manipulation and control?
DB: First of
SPJ: How does the salesperson protect against manipulation and control?
DB: First of
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
ll, recognize it for what it is and then deal with it as the tactic, as opposed to reacting to it. If a buyer is sitting behind a nice desk and he seats you in a chair across from him that’s eight inches lower than his, just tell him you are not comfortable there and move to another location so you can be eye level with him.
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
Then there’s the tactic where the buyer has a fading memory. They make an agreement and forget what they agreed to. You have to document everything and furnish these notes to all participants after every meeting. That way you have a written trail of what agreements were reached during every negotiation session.
SPJ: Wh
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
at do you do when you reach a stalemate? How do you unlock the negotiations when there are no agreeable options?
DB: That’s what you call your walk-away position. When you discover it is not going to be a good deal for you and the customer is not willing to consider alternatives, then just walk away from that bad busine
DB: That’s what you call your walk-away position. When you discover it is not going to be a good deal for you and the customer is not willing to consider alternatives, then just walk away from that bad busine
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
s. Salespeople have a tendency to not want to lose any deal, no matter what the cost. That can cause you to write unprofitable business.
SPJ: How do you close the sale without coercion?
DB: Get in agreement on all points and simply ask for the business. We try to put together a package of options that meet the needs
SPJ: How do you close the sale without coercion?
DB: Get in agreement on all points and simply ask for the business. We try to put together a package of options that meet the needs
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
of both parties and get agreement on each one of those options. Get agreement on the easy things first--but make sure each individual agreement is contingent on coming to a final agreement on all the issues. Start by developing solutions to mutual interests first, and then go to the harder points. Then you can bring it home
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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