Day 10

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Review

Rearrange these letters into words.

LGOSICN _ _ _ _ _ _ _

LLESGNI _ _ _ _ _ _ _

Negotiation

What is negotiating?

Negotiation is a communication tactic that can help you get what you want and can be used during selling to help you close the sale.

What is the difference between marketing, selling, and negotiation?

Marketing, selling, and negotiating are all connected. Marketing comes first and is when you make people aware of your product or service. Selling comes next and is when a salesperson persuades a customer to buy your product or service.

Negotiating is a communication tactic that involves compromising and can be used during selling to help you close the sale.

For example, a car company will market a new vehicle with TV commercials. People will be aware of the new vehicle and go to a car dealership to learn more. A sales person at the dealership will persuade people to buy the new car. Finally, a salesperson might negotiate on the price of the new vehicle to close the sale.

Ideally, you want to research the other person before a negotiation.

Why would it be useful to research the other person?

Researching the other person helps you understand their likes and dislikes which you can use to your advantage with your negotiation offers.
When you know their dislikes, you can prepare responses that will overcome their
objections.

First and Last Offers

After you research the other person, you want to prepare your first and last offers.

What is your first and last offer?

The first offer is what you initially tell the other person what you want at the beginning of the negotiation.

Your first offer is not what you really want.
It’s very rare that you get exactly what you want in a negotiation.
The first offer prepares you to compromise with the other person.

The last offer is the minimum you are willing to accept in a negotiation.

The minimum is what you decide you will accept, even though you did not get exactly what you want.

For example, let’s say you own a plumbing business and you have decided to buy a company truck that your employees will use to service your customers. You want to buy a quality truck, however, since you’re a business owner, you also want to keep your costs low. After looking at your company’s bank account, you determine you cannot afford more than $34,000 on a new truck. Your last offer to the car dealership’s salesperson will be $34,000. The exact amount you want to pay for a new truck is $32,000. Your first offer will be $30,000. This allows you to compromise with the salesperson in case he/she asks you for more money. At the car dealership, the salesperson shows you a truck that you see is perfect for your business. He says the truck is priced around $30,000 depending on optional extra features. Now is the moment you throw in your first offer to the salesman. You tell the truck salesperson that your budget for a new truck is under $30,000. Since you have gone below the truck salesman’s first offer of around $30,000, the salesman will want to negotiate with you. As long as you stay below your last offer of $34,000 you will have stayed in your budget.

Side Offers

What are side offers?

Side offers are additional offers that could benefit the other person.

Remember side offers should only be given if you realize you can’t persuade the other person to take your last offer. They’re your last resort. Do not immediately start the negotiation by giving side offers. Instead, try to stay between your first and last offers by effectively communicating around the other person’s objections.

Also, make sure your side offers don’t outweigh the value of what you want.

For example, let’s use the truck story again and say that the car salesman says that he/she cannot go below your last offer of $34,000. You can throw a side offer and say that you can pay with cash instead of financing. You could also say that you have
an old vehicle to trade in.

Your research of the other person will help you with side offers.

Walking Away

Finally, you want to be prepared to walk away from the negotiation.

If the negotiation goes below your last offer or doesn’t feel right, never be afraid to stop. Negotiating will often not go as exactly as you hoped. Sometimes, the other person will absolutely never give you what you want or need.

It’s better to stop, regroup, and try again later.
Don’t feel defeated if you do walk away. It’s the right choice compared to giving the other person more than benefits your business.

Response

What is negotiation?

What are your first and last offers?

What are side offers?

Why should you be prepared to walk away from a negotiation?

Build Instructions

On the next slide, you will decide whether you will allow customers to negotiate on the price of your product or service.

Dwight has decided he will not allow customers to negotiate. The price for his mentoring service is final.

Indirect Closes:

“Are you free in the evenings or mornings?”
“Should we schedule your mentoring session on Thursday or Friday?”
“Would you prefer to be mentored over the phone or in-person?”

Long Term Goals:

Generate at least $3,000 in monthly revenue
Enter into the LA and San Diego market.

Prototype:

Perfect Version – Launch Group clients will be tracked through our online, secure portal. In-person meetings, phone calls, and video conferences with Dwight can be easily scheduled through the online calendar. Long-term and short-term goal progress will be displayed on the portal for reinforcement. Each client will be given 50 GB of storage inside the online portal to place their startup files and media content. Launch Group will also provide clients a meeting room at an office building that can be used for meetings with Dwight or for their own business purposes.
Minimum Viable Product – Dwight will drive to the client’s location for mentoring meetings. Meetings can be scheduled by emailing Dwight with a 24 hour notice.

Profit:

How much profit do you want to make each time you sell your product or service?

_______$75_________ (desired profit per product/service)

How much profit would you like to make from your business each year?

_______$75,000_________ (desired yearly profit)

How many products or services do you need to sell each year to make your yearly profit?

(desired yearly profit) / (desired profit per product/service) = ___________1,000________________ (# sold per year)

How many products or services do you need to sell each month to make your yearly profit?

(# sold per year) / 12 (months in a year) = _____________83.3_______________ (# sold per month)

How many products or services do you need to sell each week to make your yearly profit?

(# sold per year) / 52 (weeks in a year)= _____________20.75_______________ (# sold per week)

Price:

$200.00 for 2 / 1 hr mentoring sessions a month.
$350.00 for 4 / 1 hr mentoring sessions a month
$400.00 for 6 / 1 hr mentoring sessions a month.

Pricing Strategy:

Receive $100.00 if you refer a friend and they sign up.

Costs:

13 inch MacBook Pro – $1,299.00
iPhone 14 Pro – $999.00
T-Mobile Magenta Plan – $70.00/month
Nissan Leaf Lease – $425.00/month
Car Insurance – $99.00/month
Electric Charging – $40.00/month
Office Supplies (ex. notebook) – $15.00/month
Business Cards – $9.99
Social Media Advertising – $100.00/month

Business Name: Launch Group

Logo:

Marketing:

Direct messaging and paid advertisements on social media platforms.
Attend Meetup entrepreneurship events and hand out business cards.

Target Market:

Age: Young Adults, Adults
Location: Orange County, California
Interests: Entrepreneurship; Technology; Innovation; Stock Market
Lifestyle: Ambitious individuals who have a busy schedule which revolves around activities/tasks for their business. They take limited vacation time and frequently attend networking events.

Industry: Mentorship

Product / Service: Service

Values: In-Person, Flexibility

Description: My business idea is to provide mentoring to startups.

Please have your child write down all their answers on paper.

The purpose of this builder is to be a guide to their idea.