Negotiating  Guidelines  for
Field Representatives and Account Managers

Sales people in the field, and often account managers based at headquarters, must fill three key roles: Selling, Mediating, and Negotiating. To be effective, reps must understand when and how to perform each role.

Selling: A rep determines the explicit needs of a customer, and, if possible, presents the product in a favorable light based on understanding those needs. These actions are designed to enhance the probability of a buyer’s agreement to buy the product. To be a seller, you must be empowered to contact potential customers, present your product, and solicit business.

Negotiating: A rep personally resolves conflicting interests and positions between the customer and him- or herself, and so brings about agreement. Both the seller and the buyer are empowered by their organization to resolve the conflict by offering currencies of exchange that bridge the gap and satisfy underlying needs.

In order to negotiate an agreement with a buyer, you also must be empowered to change the parameters of your position and accept, at least tentatively, changes in the position of the other party.

If you are a sales manager, you should determine carefully your own role in the resolution of a specific conflict with a customer. If you want to negotiate directly rather than let the rep handle it, clarify your role with your rep and ensure an understanding of the role that you expect to play. If you want the rep to negotiate the issue, ensure that you have provided adequate flexibility so that the rep can modify positions and make appropriate exchanges without having to consult you at every step.

Mediating: A seller may enhance the process of negotiation between a customer and someone else whom the seller represents. This activity requires a thorough knowledge of negotiation as a process, as well as an impartial willingness to problem solve to help the other parties negotiate effectively. Handling conflicting positions at the account interface is complicated. Sometimes a rep finds that an internal negotiation (for example, with one’s own sales manager) is necessary before any work can be done with the customer. In this case, the rep is well-advised to ensure that the internal conflict is resolved—and that all stake holders are clear about their respective roles—prior to entering discussion with the customer. Note that we have been careful to say “discussion,” not “negotiation.” The rep may find that the appropriate role is to mediate the negotiation process between the customer and a different key person from the selling organization. Understanding the difference between the role of mediator and negotiator reduces confusion for the buyer as well as for the seller.

Most sales representatives identify with the role of mediator. They probably have not had a label for such behavior, and they may even have been confusing the mediator’s role with negotiation. If so, they are glad to recognize the difference. In order to be a good mediator, a rep must be thoroughly skilled in the rules and process of negotiation: it is the mediator’s responsibility to ensure that the process is running smoothly and that the parties involved in the actual negotiation are working in good faith. A mediator is also aware of and sensitive to the emotions that are generated on both sides during a negotiation.

As a rep, you have to carry your deal back to your own organization. Suppose you have just successfully negotiated a deal with a buyer. Now, you should recognize that the internal negotiation—advocating the deal made with the buyer upward in the seller’s organization—is sometimes harder than negotiating with the buyer. Sometimes sellers have the attitude that they should not have to negotiate internally. It is good to remember that there is not always a right answer to internal situations. Reps who are skilled at these internal negotiations provide additional value: they clarify and enhance the position of the selling organization to itself. Good sellers remember to bring the skills learned in external negotiations (with buyers) to the internal table.