Do’s and Don’ts in the Collection Negotiation.
Watch what you say there are “trigger” words in statements a negotiator should avoid.
- I can’t, I won’t; Shows lack of ownership that enables the question, “Who can”
- you must agree Leaves the other side no room for negotiation.
- always diminishes credibility.
- Never sends a signal you do not want to negotiate at all.
- Should have; Should is personal and judgmental.
- I or (we) demand sends a signal that you’re insensitive to what they might need.
- I (we) will not accept shows that you’re rigid and shuts the door to further negotiation
- But sends a signal that you don’t care and that everything that was said up to that moment is not important. Instead of using the word “but” use “nevertheless.”
There are certain trigger words that might help
- I will Shows accountability and ownership it shows that you’re the one that’s responsible you may say I II will make a decision but I need additional input from my management. that is different than saying “I can’t” so much more powerful to use those words.
- Help me understand it shows you’re willing to listen and increase your knowledge of what their position and weakness. It also makes them talk.
- let’s build on what we’ve agreed to so far, we’ve come so far in the negotiation so you’re building going up the stairs, up the steps saying OK we have agreed on five points that’s great we still have some issues may be similar kind of contentious but we’ve come so far in the negotiation it just really wouldn’t be worth it to either of us just to walk away. You’re showing that you’re considerate, that you’re thinking, and that you’re open to more discussion
- let’s develop a solution that works for both Shows a “win win” attitude and that is incredibly important to both sides.
- Nevertheless: Shows that what was just said matters and that you will add upon what was just said. Never use the word but.
Speaking in a Positive Convincing way in collections negotiation
Be truthful being truthful speaking a positive and A and a convincing way
- Use active Verbs of motion to create a sense of force in what you say. Such as: Will stop, will start, will analyze, will report, will seek out.
- Avoid being pompous and pretentious or vague using fancy abstract words that you might not really thoroughly understand, it will reduce your credibility.
- Use small and easily understood words to make what you say clear and positive.
- Give the customer one idea at a time to be convincing and avoid confusion. Don’t bombard them with here’s a way, there’s a way, there’s the issue, that’s an issue, nobody can handle that it will be very distracting and confusing.
- Explain your position using illustrations and examples. “We are going to have to put your account on credit hold, because we need to be paid in a more current fashion, we have to do this because we’re it’s a legal requirement for trade to treat all of our customers the same way, we can’t give you extended terms unless it’s in very confined circumstances.” Explaining your position and giving them examples is very effective and can be quite convincing.
- Be direct Don’t “beat up around the bush” It might be embarrassing to somebody. you might feel embarrassed, a lot of people are not confrontational, but it’s better to be direct get it out on the table and if you don’t know something tell them it’s a great way for them to tell you, their story. if you’re trying to bluff somebody, they’re going to figure it out and you’re going to lose credibility and it weakens your position.
- Don’t talk down to people it’s insulting and it’s going to create some sort of a bad or negative reaction and limit your ability to negotiate.
- Speaking your natural tone and cadence don’t try to rush just be natural again and you can use words as a tactic
- Use more words that solicit an emotion People tend to be more motivated by emotion than logic or reason. Don’t explain what you think about an issue, tell them how you feel. For example; I feel we have to treat everyone on an equal basis and in order to do that, I feel that you need to honor your commitments. that’s a tactic might not fit in every situation but something to think about. We feel our business relationship is worth saving we want to do that and we’re open to work with you so let’s talk about how to negotiate our way out of this.
- Give examples for the different tips given to you.
How to keep the other side engage?
Key things to keep the other side engaged
Avoid sensitive topics outside the scope of the negotiation stay away from volatile subjects like politics or religion or the role of women in business.
Focus on what’s it what is in it for them “if we can reach to a positive conclusion, we can restart shipments. Your company can sell our product make a profit. it’s really worth it to both of us.”
Focus on points of mutual interest and not conflicting positions. for example; “both of us are interested in continuing our business relationship let’s talk about how we can do that.”
Recap the discussion frequently Verify all participants have the same understanding. Ask them to tell you, or repeat what was agreed upon, or is still an open issue.
emphasize the cost of not agreeing Discuss the situations you want to avoid. “If we can’t reach an agreement, we probably won’t have any choice but to refer you to legal action because we have to resolve this. That would be really damaging and we don’t want to do that because we want the revenue from your company just as much as you want to sell our product. The cost of not agreeing is pretty significant.”
Make concessions that are contingent upon settling all the issues or provide an acceptable trade off. This is something that can be developed during the negotiation when assessing potential tradeoffs.