I will be focusing my blog on the area of commercial negotiations. This has not only been an area of business that I am passionate about but also an area where I have seen significant real value created by leveraging strategies, techniques and tactics that are, in some cases, different and unique. With this in mind, my objective for this blog is to share insights I have from both the buying and selling sides of the business so that hopefully you will be able to leverage some of these learnings in your negotiations.
In many instances, buyers and sellers are placed into their roles, given a list of goals and given a hearty “good luck, god speed” from their manager and off they go to create commercial deals on your organizations behalf. The challenge with this approach is that individuals, in the absence of professional development that provides insights into how to effectively negotiate commercial deals, will encounter situations where they find themselves head to head with a trained negotiator who may, depending on the nature of the relationship, be there to build a partnership with your organization. However, if this person is looking to extract every dollar and favorable commercial term (e.g. payment terms) from you, an untrained negotiator is going to have their hands full. In fact, the risk is high that you will leave money on the table or lose the business altogether.
If this is a situation that sounds familiar to you, it’s OK because you are definitely not alone. In fact, based on some benchmarking I have done with business professionals over the past five years, 98% of individuals who are buying or selling have not been trained in commercial negotiations. There are organizations that will send their buyers to programs that help them develop sourcing strategies, outline how to effectively complete an RFP, etc.. On the selling side, some organizations will complete sales training that focusses on how to assess a customers needs, how to deal with objections, etc.. Commercial negotiation is different. In fact, the negotiation starts once the selling is complete and is principally focussed on creating the best possible terms.
In upcoming blogs, we will go much deeper into the principles and concepts that will enable you to complete commercial negotiations that are favorable for your business. Examples of the areas that we will discuss include the different types of negotiations, key principles of commercial negotiations, the behaviors of extraordinary negotiators, strategy and planning as well as outlining negotiation tactics that you can you use in a negotiation as well as how to handle situations where the tactic is being used against you.
It is also important to highlight that I am going to focus the blog discussions on the transportation / supply chain sector as well as balancing the discussion between the buying and selling functions of an organization.
I am looking forward to the journey of exploring the multiple aspects of commercial negotiations. If there is a specific area that you would like me to speak to, please send an email to me at email@example.com and I will work to provide the answer in upcoming blogs.
Warren Sarafinchan is providing advisory services and professional development in the areas of Business Strategy, Negotiations, Supply Chain Management, Sales Management as well as Leadership
Coaching. Warren has extensive experience working with leading organizations across North America designing and implementing solutions to complex business challenges and opportunities. Warren’s facilitative approach
has allowed teams he has worked with to accomplish ‘impossible dreams’.
In addition to Warren’s experience leading Supply Chain functions, he has implemented multiple ERP solutions, lead a Sales organization through a period of significant challenge and change as well as heading
Information Technology functions. This broad ranging experience allows Warren to bring total business solutions to his clients. Warren works from the initial problem solving / visioning through to successful implementation.
Most recently, Warren was the Vice President of Supply Chain and Sales at SunRype Products Limited. Prior to SunRype, Warren worked in senior leadership roles for Mars Canada, Maple Leaf Foods and Labatt
Breweries of Canada. Under his leadership, the teams Warren worked with have developed and implemented strategies that have delivered significant financial improvements, increased customer collaboration and overall improvement in team engagement. Additionally,
Warren has developed a professional development program focussed on negotiation that is proven to enable organizations to create significant value with both customers and suppliers. All posts by Warren Sarafinchan