Cultural considerations
Researching the culture of the country may reveal some tips on what negotiating styles to use.
You may find that your overseas customers value haggling and the first price you put on the table is merely a starting point for negotiations. Other cultures prefer a less formal approach and may wait until after official business meeting to make a decision. Final negotiations may take place over an evening meal or drinks.
Some cultures consider negotiation as leading not just to the signing of a specific contract but a formation of a longer term relationship.
Negotiating and overcoming objections
Try to think in advance of the key objections customers are likely to raise and what reassurances or solutions you can offer. Involve your staff and your advisors in this exercise. It can be useful to imagine what a potential customer might ask. For example:
- Why should we use a non-local company?
- Will the product work in our climate, electrical systems or other local conditions?
- Does the product meet all our industry, health and safety regulations?
- What if something goes wrong – who do we talk to? Will we be able to talk to them on a regular basis?
- Will we have to set up a new supplier number?
- How long does it take to get spares/supplies/replies/additional product/service?
Identify and address all the possible objections or issues. If you can offer positive solutions you can overcome objections before they become deal-killers. If you are:
- Pitching a product – emphasise continuity, local maintenance/back up, and stress features that save money/time. Focus on your unique difference.
- Pitching a service – the people aspect is more crucial. Outline how you will keep in touch through regular visits and/or local alliances on the ground. Remember the more credibility and the better track record you have, the easier it is to pitch, so quote other large companies you have worked with, or work you have done.
Negotiations can take months or even years, so start prospecting early – it will take you longer than you think. Larger companies can often take some time to make decisions as the process has to move through layers of management.
In the meantime, continue to develop your personal relationship with overseas customers. Visit them when you can, or turn up to events, conferences or trade shows where they can meet you. The more you can see them in different settings the better.
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