How to negotiate: what people really want

(c) Kate Matthews 2014 

ARE you getting lots of enquiries but struggling to close the 'deal'? Does it sometimes feel like the client wants only one thing - that is to beat you down on price? We've all been there and while it may seem that way, I hope what I'm about to tell you makes you think a little differently.

When a potential client is haggling for your best price, please don't be disheartened. It is actually a good sign - a very good sign. It means they're interested enough to weigh up your worth. As long as they're negotiating with you - you have the chance to keep moving them forward until they cross the line!

But before you can do that, you need to understand the sales process, what the client really wants and what's holding them back from saying yes. Of course while no two people are the same, but you can make some assumptions based on what you already know about your services.

And remember, it's benefits not features that will ultimately seal the deal.

What does the client really want?

What people really want is for someone to reassure them that the decision they're about to make is the right one. That making the commitment will make their life easier or better in some way. This is known as a benefit - not a feature.

Case study:

It depends what you're selling but let's look at a typical case study: Jackie's mum has phoned you to enquire about your face painting services for Jackie's birthday party. She thinks she wants to know how much it will cost her, but what she really wants to know what you are going to do to make her life easier.

Let's make a few assumptions based on what we already know about kid's birthday parties.

Kid's parties can take a lot of planning. They're hectic, there's usually some organised activities, and a cake ceremony. Often the kids outnumber the adults - it's enough to leave anyone overwhelmed. But at the end of the day, a birthday party is all about creating happy memories, and sometimes even bragging rights.

So Jackie's mum wants to make Jackie's birthday party special. She wants to take lots of photos of all the happy faces so she can keep the memories alive. She wants to impress her guests (other parents), and she wants it all to be easy. In short - she wants someone in a metaphorical (or literal) superhero cape to come in and save the day so she can relax and enjoy it herself. These are all benefits of hiring someone to help - And here you come!

How will you save the day? 

The first thing Jackie's mum is likely to want to know is, "how much will you cost me? - and then, "can you drop your price at all?"

While your gut instinct may be to think about discounting and/or feel insulted - with a little practice you will find you can sail through the sales process and come out the other end with a booking.

Here's how: understanding the sales processI

Ideally before you give Jackie's mum a quote for your service you will extract more information from her. 

YOU: "I've got lots of bookings coming up over the next few months. Before I can quote you, would you mind telling me a few details? Let's start with your name, the name and age of the guest of honour, when and where you are planning to hold the event, and how many guests you think might want face painting? Once I have some details from you I can make sure I'm available and I can tailor the best party package for your needs."

You might like to create a form you can fill out to ensure you get all the info you need.

Once you have established the essential info, it's time to find out if Jackie's mum wants a basic package or if she would like some additional features. Now is the time to run through what your party package/s include. Frame the features in benefits which are appropriate to the but don't throw everything you have at Jackie's mum, limit the offer to a maximum of three.

You may also like to ask if there's a theme or if a costume character is required - if you offer a costume character service.

YOU: "My basic party package includes face painting with quality cosmetic paints and two party games to keep the kids busy while you relax. For a small additional fee I can also dress up in costume and provide party favour bags for your guests. I have a lot of parents who want me to put the party favours together because it saves them time."

See how you've taken Jackie's mum from wanting to know how much it will cost her to understanding how you will help her? The next step is to seek a response and see if she's ready to commit. The additional services you offer may vary, but hopefully you get what I'm working towards.

YOU: "Does that sound OK? Do you think you would like the basic package for $x or would you like to add on a few extras?"

Now it's time for mum to say one of three replies: 'yes that sounds great'; 'I need to talk to my husband and get back to you'; or 'can you do me a better price at all?'

If she's ready to commit then it's time to 'pencil the party into your calendar' and advise your new client how she can confirm. But if she responds by putting you off, or asking for a discount, then you'll need to keep negotiating.

Rather than dropping your price, or letting her go and 'talk to her husband', this is the time you need to add something to sweeten the deal.

IF/THEN

About 10 years ago, fresh out of university, I got a job selling advertising. My clients were mainly used car salesmen. I was in the deep end until one of them took pity on me and gave me this amazing tip and from then on things really changed. While I was lucky my company provided plenty of training opportunities, the tip from that used car salesman that day is probably the most useful in closing a deal. And I'm now passing it on to you.

I still remember seeing the word he wrote on a yellow post-it note which he passed across the table to me: IF. 

That's it! It's a short but very powerful word and when you use it with confidence, it will make a world of difference to your sales. I promise.

You see, the word 'IF' is an awesome way to close a sale, or find out if there are any further objections that prevent the customer from making a commitment. 'IF' warns the potential client they will need to make a decision, or at the very least give you more information so you can keep working towards that sale. It's the perfect negotiating tool.

Here's an example you might like to try out on your next (potential) client. Put it into your own words and practice if a few times before you do it in real life: 

"IF I was to throw in [insert the additional service*] for x number of guests at no extra charge to you, then would you be ready to make a booking today?"

See how 'IF' frames the question - and provokes a response.

Now you must wait - and even if there's a long pause - don't speak until after the other person has responded.

"She who speaks first loses" - or so I was told.

In this moment, the customer is forced to make a decision and give you an answer. They may still be undecided, and you will never win them all, but you should improve the odds. You can always tell them you'll hold the offer for 24 hours to encourage a call back. It's worth a shot.

 Some quick ideas for 'additional extras':

• Party favours
• Invitations
• Party Games
• Balloon Twisting
• Glitter Tattoos
• Photography
• Costume characters
• Party Decorations

Did you find this article helpful? Your comments and feedback are welcome. Please find me on Facebook (click here for the link). If you have any comments or questions, join in the conversation in the forum: Face Painters Q&A

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