GUIDELINE 3

CLOSE THE DEAL

You can sell and sell and sell, but it’s all wasted time if you don’t know how to close a deal. Be sure to take the following steps when you are trying to close a deal.

1.   Know in advance your own desired terms (what you will ask for) and your own bottom line (the least favorable terms you are willing to accept).

2.   Make sure you are talking to the person with the power to make the decision involved or at least influence the decision; otherwise you will be wasting your time.

3.   Move the conversation to specific terms—time, place, and money.

4.   State your desired terms, and then shut up. Stop talking. Be patient. Sit through the uncomfortable silence. Somebody has to talk first. The person who does is very likely to try to move toward the other person’s negotiating position.

      So wait for your customer to say something. That something may be “Yes,” or “No way,” or “Maybe.” You won’t know which unless you listen carefully.

5.   Stop and think about your response. If the customer has said, “Yes,” then you just closed the deal. If customer has said, “Maybe,” or has equivocated in any way, simply repeat your desired terms and shut up again. Keep doing this until you get to “Yes” or “No way.” If the decision is “No way,” go straight to the next step.

6.   Ask the customer, “What do you need from me to close this deal?” Then, once again, listen carefully. If the other person’s bottom line is lower than yours, you have nothing to lose because you are prepared to walk away. So go ahead and state your own bottom line and then shut up, stop talking, be patient—and listen carefully. If your customer’s bottom line is higher than yours, accept your customer’s bottom line terms: you just closed the deal.

7.   When you close a deal, commit the terms to paper, initial the document, and pass it along to your customer for his or her initials. Do this even if you are working on a specific project with a coworker or your boss or your best friend. Simply write a memo saying, “My understanding is that we agreed that we will work together on [specify]. You will do [specify] and I will do [specify] by next Thursday. Is this your understanding too?” Also, specify anything a third or fourth party will do.

      Committing the terms to paper confirms that all the parties involved know what is expected of whom; this substantially reduces the chance for misunderstanding and conflict as everyone works together. From a legal standpoint, committing terms to paper and having both parties sign the paper is proof that you have made an enforceable agreement, otherwise known as a contract. In order to have an enforceable contract, you need to include the following details:

—  What are you promising to do?

—  What is the other person promising to do?

—  By what date and time is each person’s performance promised, and in what place?

Consider role-playing this entire process with a friend or colleague. Agree on a hypothetical transaction and hypothetical roles; then, take some time so each of you can decide privately on ideal terms and a bottom line. Finally, role-play the negotiation.

Note: Take turns being the “awesome negotiator,” or your role play could stall at the fourth step.