Summary of the webinar conducted by the Oracle is given below.

Beliefs, Skills, and Techniques

If you are a practitioner in negotiating, you are more fear-free. In order to close the deal, we have to partner with the NetSuite team and close it. Not by negotiating against the netsuite. Think about why we are solutioning NetSuite to the customer.  

Even before we talked to the customer the customer started the negotiating. Consider the BAND & MEDDIC before entering the door of the customer. If the customer says this is the budget, you have to say let’s work on this. 

Negotiate on time and terms. If customer want that discount, can they sign on this day?  

MEDDIC 

• Metrics – Quanitifiable measures of value that NetSuite will provide our customers. Metrics help understand how big the problem is that you’re solving. 
• Economic Buyer – The person with the overall authority in the buying decision. 
• Decision Criteria – The set of principles guidelines and requirements that an organization uses to make decision.
• Decision Process – A series of steps that dictates how you customer will decide and who is involved.
• Implicate Pain – The process of identifying the customer’s problems and communicate the cost of that pain. 
• Champion – A person who has power, influence and credibility within the customer organization who is willing to help us move the deal forward.
• Competition – Any person vendor, or initiative competing for the same finds or resources that we are. 

Be clear about the premium solutions. Believe it or not, Clients will bulk at paying too little if they perceive value is high. We all expect to pay premium prices for premium products. Very often we discount on price because we have not been clear enough on the value of the product or the service.  For example iPhone. Why do people pay for X number of dollars? There are other phones in the market. And they’re willing to pay. For that X number of dollars to get an iPhone. Right.

One more thing to consider is what negotiations are, who are we negotiating against? So on the other side is the customer and all of their beliefs. It can be their research to problems that are on top of the their mind. Sometimes they use applications such as Sage, Infor, Microsoft Dynamics, etc. It can be their research to problems that are on top of their mind. That’s why they’re geared towards using that. Moving forward in the future. And then they receive a phone call or email and you’re expected to dive in. You are to trust an advisor. Don’t get distracted by your prospect’s belief. It may weaken the argument that you have against the biggest competition. And that’s a decision for a customer.

We actually lost 6 out of 10 leads because customers are afraid of the cost of change of an ERP disruption. And Oracle has specifically designed a tool. This is called the value assessment tool to clarify for the customer.

if the prospect says Anita I don’t have any budget right now. Reply as  Let’s push this 6 months forward or 6 months after this conversation. Otherwise, they would say, They don’t have a decision yet at this moment. So this is going to be really helpful because at this point you can tell the prospect or the customer. If we delay having this improvement, you can delay if you like, but there is an opportunity cost for margin leakage and cost inefficiency.

We don’t just want them to pay for their max budget because the highest realistically expected price we will get more from it.

Strengthen Your NetSuite Position.

1. Assemble your team
   1. The best way to strengthen your position right of front is to assemble your team. Your channel team is invest in 100% of your success. So you should assign roles for every person on your team and match up roles to your prospect’s team. 7
2. Develop Your Plan
   1. Meet with your channel manager and proactively develop your negotiating plan. You should clarify the roles. You need to have a close plan. What is going to be your concession plan? And where you will draw the line with a polite no if needed.
   2. Clarify your team’s roles & responsibilities
   3. Calendar your “close plan”
   4. Anticipate likely “Gives” & “Gets” scenarios.
   5. Concede according to plan
   6. Decide when you will “Just say No“ (Politely, of course)

Even before the call we have to know to what extent we can say yes to a discount that they’re asking. If they’re asking for this much discount, what are we going to get in return? Why are we going to concede? what better we can offer etc.

3.  Cover their full org Chart

How do you match up from the very start?If you have the CEO. Those gonna be coming from your end to match up the CEO. Off the prospect or if there’s a CIO a CTO a  VP of sales, who’s going to be coming with you to match up.

4. Use a Joint Execution Plan

The joint execution plan is something that, dramatically improves your deal.

5. Sell to Value

The value assessment value viewpoint so if they’re not providing you a yes let’s proceed you know let’s let’s or let’s wait until you know we have budget.  Provide them that value. What we should do it now instead of later. Okay Now, in working with your channel manager, these are just some additional things that you can look into.

• Subscription Term – e.g., 12, 24, or 36 months. Lengthen the term to improve their NPV by securing today’s price point
• Price Hold($) – Guaranteed price for future purchases of a specific SKU/Cloud service for a specific period.
• Price Lock(%) – Guaranteed discount percentage for future purchases of a specific SKU/Cloud service for a specific period
• Renewal CAP – Limits the price increase on the renewal and only applies to the value of the original functionality of the contract. Limited to a specific period.
•  Payment Terms – Annual vs Quarterly – Quarterly terms provide a risk of abandonment before installed.
• Oracle Finance/Leasing – Provides monthly payments with the benefit of 100% of subscription commission at the time of funding. Enables Partner the option to rebate a portion of your commission to cover the lease cost since the commission received early as opposed to spread over the years with annual payments.
• Removable Elements – Preserve your final license goal by adding items that can be removed through negotiations. Examples: Phase 2 items, premium support, sandboxes, etc.
• Add “Free” months – Change 36 month subscription to 38 months but discount to the original 36 month price. Preserves original value. Helps deter a customer wanting to delay the purchase. In this example, the discount percentage is 1 month/ 38 = 2.63% or 2 months/38 = 5.26%(Caution: Ths is subject to approval of overall discount being offered.)
• One time Discount – Discounts that are applied to specific estimates that do not apply to future purchases or estimates.
• Subscription Services Agreements edits– SSA edits may be considered in return for a reduced discount. Only when the annual value is > $50k per year.

Partners do not create the NetSuite “quote” for software – your Channel  Sales Team does.  

Negotiating Techniques

• Knowing your bias
• ZOPA – Zone of possible agreement
• MESO – Multiple  Equivalent Simultaneous Offers – To your customer, these provide choices (and make them more likely to select NetSuite)
• Gives & Gets
• “No” (politely)

7 Areas of Value Talk Track

Posted article in the Knowledge base, Please refer for knowing the 7 areas of value talk. https://jobinandjismi.in/7-areas-of-value-talk-track/