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Thank you for participating in this Negotiation Benchmarking Study. The purpose of this survey is to learn more about the factors affecting the outcomes of price negotiations with B2B customers. The results of this study will be incorporated into an upcoming book titled “Changing the Game: a Handbook for Winning with Aggressive Customers”. The results will also included in a white paper, which will be shared with you in exchange for your participation.
The survey will take approximately 10 minutes to complete. We ensure the privacy and security of the information you provide in this survey. The data you provide will be used only in aggregate with other respondents.
We kindly request that you complete the survey by the end of business on February 17, 2015. If you have any questions specific to the administration of this survey, please contact John Hogan at [email protected].
Thank you again for your help with this important study.
Dr. John Hogan |
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In this survey, we will be asking questions about two different price negotiations in which you have participated over the last year. For each negotiation, we will ask about the context of the negotiation (e.g., # of vendors bidding, product type), customer characteristics (e.g., size, length or relationship), negotiation tactics used by the customer (e.g., applying time pressure) and negotiation tactics used by you or your firm (e.g., threaten to walk away).
The first negotiation will focus on a deal that you consider a “WIN”. For the purpose of this study, a WIN is defined as any negotiation that resulted in increased sales to the customer or in maintaining already high sales. It does not matter if the “WIN” resulted in higher or lower prices.
The second negotiation will focus on a deal that you consider a “LOSS”. For the purpose of this study, a LOSS is defined as any negotiation that resulted in substantially lower sales to the customer or failing to gain substantial volume when you currently have low sales to the customer.
Please answer each question to the best of your ability. It is important that you answer each question even if you are not sure of the precise answer. |
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We would like to get some basic background information about you and your company to provide some context for the negotiations you typically face. |
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| First Name: | | | | Last Name: | | | | Company: | | | | Email Address: | | | | Phone Number (Optional) | | |
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* GB1. How would you describe the main industry for your division of your company? |
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| * GB2. What are your division’s approximate annual revenues (in dollars)? | | |
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* GB3. How would you describe your firm’s general approach to pricing? |
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* GB4. What is your current job title? |
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| * GB5. How many years have you worked for your current firm? | | |
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| * GB6. How many years of sales experience do you have? | | |
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* GB7. Have you ever participated in formal negotiation training? |
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| * GB8. Approximately how many customer price negotiations do you participate in during a typical year? | | |
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| * GB9. On average, what percentage of your income is derived from sales commissions? | | |
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* GB10. How are your commissions (if any) determined? |
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Take a moment to think about the customer price negotiations in which you have participated in the last year. For this section we would like you to focus on a recent negotiation that represented a WIN for your firm. For the purpose of this study, a WIN is defined as any negotiation that resulted in increased sales to the customer or in maintaining already high sales. It does not matter if the negotiation resulted in different prices. |
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We would like to understand some background information about the customer involved in this winning negotiation |
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* CC1. How would you describe the customer’s primary business? |
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CC2. Please rate the size of this customer relative to customers served by your company (1= smallest customer and 10=largest customer).
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* CC3. Was the customer experiencing greater than normal financial or business pressure at the time of the negotiation? |
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* CC4. Did the customer have a professional buyer handling the negotiation? |
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* CC5. Would you say you have a close working relationship with the primary buyer at this company? |
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| * CN6. Approximately what percentage of the customers business do you currently hold for this product category? | | |
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* CN7. Is this customer one of the larger accounts in your territory? |
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* CN8. Was this negotiation focused largely on a new or improved product? |
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Now we would like to ask some questions to better understand the specific context of this winning negotiation. |
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* DC1. What kind of product was the primary focus of the negotiation? |
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* DC2. How large was this purchase from the customer’s perspective? |
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| * DC3. Approximately how much dollar volume was up for bid? | | |
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* DC4. To the best of your knowledge, how many vendors (including your firm) were bidding on this deal? |
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* DC5. Were you the incumbent supplier holding a majority of the customer’s business? |
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* DC6. Did your firm have any notable product or service failures with this customer in the 6 months prior to the negotiation? |
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Please indicate the extent to which you agree or disagree with the following statements:
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Product and Service Advantages |
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A vendor’s product and service quality are often a key determinant of negotiation outcomes. Please tell us about the nature of your products and services. |
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How do your products compare to your competitor’s products? (10 point scale: 0 = competitor's products have significantly better features, 5 = the same, 10 = Our products have significantly better features)
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How important are the following to your customers? (10 point scale: 1 = Not at all important, 10= Critically important)
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Customer Negotiation Tactics |
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In this section, we would like to understand the specific negotiation tactics used by the customer during the negotiation. |
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Did the customer use the following tactics at any time during the purchase and negotiation process?
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Vendor Negotiation Tactics |
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In this section, we would like to understand some of the specific negotiation tactics used by you or your firm during the negotiation. |
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Did you or anyone at your firm use any of the following tactics during the course of the selling process and negotiation?
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Please check the box that best describes the outcome of this particular deal.
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* NO4. How did this negotiation impact prices for the primary products in this negotiation? |
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* NO4(a). Approximately how much did prices increase on the primary products for this negotiation? |
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* NO4(b). Approximately how much did prices decrease on the primary products for this negotiation? |
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* NO5. How was your business relationship with this customer impacted as a result of this negotiation? |
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