Getting a job in sales is no easy task. It takes hard work, dedication, and perseverance. But it’s worth it because once you land that job, the sky’s the limit. You’re now part of an elite group of people who are responsible for bringing in new business and helping to grow the company. But before you can start reaping the rewards, there’s still one more hurdle to overcome: the sales contract negotiation. This is where you’ll need to be shrewd and savvy because this is where you’ll set the terms of your employment.
While this may sound overwhelming, you’re not alone in wondering how you can ensure you have a successful sales contract negotiation. Every month, 28000 people do a Google search for ‘how to negotiate salary. So don’t worry – just follow these tips, and you’ll be able to negotiate a contract that works for both you and your employer.
What Is Sales Contract Negotiation?
Sales contract negotiation is the process of agreeing on the terms of a sales position between an employer and an employee. This usually happens after a job offer has been made, the hiring process is complete, and before the start date of employment.
The goal of contract negotiation is to come to an agreement on compensation, benefits, job duties, and other aspects of the job. It’s important to remember that both parties need to come away feeling like they’ve won something in order for the negotiation to be successful.
Do I Need Any Skills To Successfully Negotiate My Sales Contract?
There are a few skills that will come in handy during the negotiation process. This includes:
Clear Communication
A good salesperson is a clear communicator. This means being able to articulate your needs and wants in a way that is concise and easy to understand. You’ll need to be able to do this during the negotiation so that both parties are on the same page. For example, if you’re looking for a higher salary, be specific about why you deserve it.
Listening Skills
It’s not enough to be able to communicate your needs – you also need to be a good listener. This means being able to understand what the other person is saying and responding accordingly. For example, if your potential employer says they’re not able to meet your salary demands, ask what other benefits they’re willing to offer instead.
Flexibility
The ability to be flexible is another important skill to have during the negotiation process. This means being willing to compromise on some aspects of the job in order to get what you really want. For example, if you’re looking for a higher salary, you may be willing to accept a lower signing bonus.
Confidence
Last but not least, you’ll need to be confident in your abilities. This means believing that you’re worth what you’re asking for and that you have the skills and experience to back it up. Remember, if you don’t believe in yourself, no one else will.
Now that we’ve gone over some of the skills you’ll need for a successful negotiation, let’s take a look at our top career advice to make your sales contract negotiation more successful.
Understand Your End Goal
What do you want to achieve from the negotiation? This is the first and most important question you need to ask yourself because it will determine your strategy. Are you looking for a higher salary? More vacation days? A signing bonus? Company car? Whatever it is, make sure you know exactly what you want before going into the negotiation.
The best way to do this is to make a list of your non-negotiables – the things you absolutely must have in order for you to say yes to the job. From there, you can start thinking about what you’re willing to compromise on. You may want to base this answer on your past experiences or research you’ve done on the company.
For example, if you know the company is notorious for low salaries, then you might be willing to compromise on salary in order to get other things like more vacation days or a signing bonus. On the other hand, if you know they’re known for being generous with bonuses, then you might be willing to negotiate on salary in order to get a bigger bonus.
Do Your Research
In order to be successful in any sales contract negotiation, you need to do your homework. This means knowing as much as you can about the company, the position, and the industry. The more information you have, the better equipped you’ll be to negotiate from a position of strength.
For example, if you know the company is doing well and growing rapidly, then you’ll be in a better position to ask for a higher salary or signing bonus. On the other hand, if you know they’re going through tough times and shedding employees, then you might need to be more flexible with your demands.
On the same note, you’ll want to research average salaries and bonuses for your position and experience level. This will give you a good starting point for the negotiation and help you gauge what’s reasonable to ask for. You can find this information by searching online, talking to people in your network, or even contacting a recruiter. For example, the average medical sales rep salary in Los Angeles is $63,215 per year. If you were offered a salary that was a lot lower, you’d know to negotiate for a higher salary.
Be Realistic About Your Expectations
It’s important to be realistic about your expectations going into the sales negotiation. If you’re expecting to get everything on your list, you’re likely to be disappointed. The key is to focus on your non-negotiables and get the best possible deal on those items. You’ll also want to make sure that the overall package is still attractive to you, even if you don’t get everything you want.
For example, let’s say you’re looking for a higher salary, more vacation days, and a signing bonus. But after doing your research, you realize that the company isn’t able to offer more than two weeks of vacation and no signing bonus. In this case, you might need to compromise on your vacation days in order to get the salary and signing bonus you want.
The most important thing is to make sure you’re happy with the overall package. If you’re not, then it’s probably not worth taking the job – no matter how good the salary is.
Consider Perks Beyond Salary
During a sales contract negotiation, many people focus solely on salary. But there are other important factors to consider, such as vacation days, 401k matching, health insurance, and signing bonuses. These are all important factors that can have a big impact on your overall compensation package.
For example, if you’re looking for a salary of $100,000, but the company is only willing to offer $80,000, you might be able to negotiate for a signing bonus or more vacation days. Or, if you’re looking for a promotion, but the company isn’t able to offer that right away, you might be able to negotiate for a salary increase or additional responsibilities.
It’s important to remember that there’s more to negotiation than just salary. By considering all of the factors involved, you’ll be in a better position to get the best possible deal.
Start High and Be Prepared to Compromise
When you’re negotiating your sales contract, it’s important to start high and be prepared to compromise. This doesn’t mean that you should start with an outrageous number, but you should aim for the top of your range. For example, if you’re looking for a salary of $50,000, you might start by asking for $60,000.
The key is to be prepared to compromise on your initial demands. If you start too low, you’ll have less room to negotiate. And if you start too high, you might price yourself out of a job. By starting in the middle, you’ll give yourself some room to negotiate and increase your chances of getting the salary you want.
Be Professional and Polite
It’s important to remember that negotiations are not personal. The goal is to get the best possible deal, not to make the other person feel bad. With that in mind, you’ll want to be professional and polite throughout the negotiation process.
For example, if the employer comes back with a lower salary than you wanted, you can say something like, “I’m sorry, but that’s not what I was expecting. Can you do any better?” By being polite and professional, you’ll increase your chances of getting the salary you want. If you’re rude or aggressive, you’ll only make the situation worse.
Get Everything In Writing
Once you’ve reached an agreement, it’s important to get everything in writing. This way, there’s no confusion about what was agreed upon.
You should also make sure that the contract includes all of the terms that were agreed upon, such as salary, vacation days, signing bonus, etc. If any of these items are missing, it could cause problems down the road.
By getting everything in writing, you’ll protect yourself and ensure that you get what you agreed upon. If the company is unwilling to put everything in writing, that’s a red flag, and you should be wary of signing anything.
Know When to Walk Away
Lastly, it’s important to know when to walk away from the negotiation. If you’re not happy with the offer, don’t be afraid to walk away. There’s nothing wrong with ending the negotiation if you’re not getting what you want.
For example, if the company is only willing to offer a salary of $50,000, but you were hoping for $60,000, you might decide to walk away from the job. Or, if the company isn’t able to meet your other demands, such as more vacation days or a signing bonus, you might also decide to walk away. It’s important to remember that you’re not obligated to take the job just because they’ve made an offer. If the offer isn’t what you wanted, don’t be afraid to say no and look for another opportunity.
The Bottom Line
When it comes to negotiating your sales contract, it’s important to do your research, start high, and be prepared to compromise. You should also be professional and polite and make sure that everything is in writing.
If you’re ready to find your next job opportunity, check through our open job opportunities or contact us if you’re ready to find new employees in your area. At Sales Recruiters Chicago, we’re always happy to help!
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