Q & A Table of Contents
Selling Projects in a Down Economy
From: Raja, Malaysia
Question: I work for a construction management company specialising in development and contracting works. Currently we are negotiating plus trying to put up a proposal with federal and state government agencies to put up various facilities. We know they are in dire need of these facilities but they are undecided because of cost factor and the economy in Malaysia is not good at present. We need you valuable advise in how to conduct a "winning negotiation " with client. We need that "Magic" word to convince the client.
Response: Dear Raja,
Your question is, in many ways, the fundamental question most salespeople must face: How to convince someone that they need something that you have to offer, even if the price is beyond the expectations or limitations they face.
There's both good news and bad news in response to your question: The bad news is that there is no such thing as a 'magic' word that is guaranteed to produce results. The good news is there are things you can do to try to move folks from your 'prospect' file into the 'client' file.
In your question you make it clear that the projects your company would like to undertake for various government agencies are all quite needed. While there may have been indications of the importance of the projects at various times in the past, you need to consider the timing of those indications: were the priorities spelled out when there was lots of governmental money? Is the support from the projects coming from above or below?
You need to take a look at the interests of the various parties:
- You may be interested in bringing income to your company, and, consequently, to yourself.
- Your company's owners want income and to assure the company's survival. They may also be interested in the prestige of being able to point to a particular project and say 'I built that."
- The workers need to earn their salaries.
- People in the general public have an interest in having good facilities to use; they are also likely to be concerned with the amount they pay in taxes.
- Government officials might be concerned with political ramifications, budgetary constraints, credibility with their constituents, relationships with contractors, etc.
Now that I have suggested this list, let me suggest that there are probably many constituencies to add. In addition, all of the interests listed above are assumptions on my part. When you map out the interests of the various parties you must make assumptions, but must also be aware that "when I assume, I take the risk of making an 'ass' of 'u' and 'me'. So once you've outlined your assumptions, you need to do a reality check on each one to learn whether it is an interest of another party -- and how important it is to them.
You learn about interests by asking questions and then by LISTENING. The better you listen to the people you want to convince, the more likely you are to respond with language and ideas they will find appealing. If you listen well, you will probably learn things that will 'sell' them that you might never have considered.
Given that the economic situation is a particular problem, your success could well depend on figuring out the priorities in the minds of government agency decision-makers. Which projects are most important? Which areas need to have government impetus for employment? What long-term financing possibilities exist? Are there projects that might be supported by international agencies, by private sector users who need a better facility to aid their businesses? What allies can you find to help encourage favorable decisions by the governmental folks?
You face daunting challenges; I do not envy your situation. But I have a feeling that doing a good job of homework can increase the likelihood of your success, and in that I wish you good luck. The American inventor Thomas Edison said that genius is 99% perspiration and 1% inspiration.
Let me know how things go.
Steve
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