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  3. March
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  5. LOSS Survey - Generic Numbering with PW
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Exit Survey
 
 
Instructions
 
 
Thank you for participating in this Important Negotiation Benchmarking Study.

In this survey, we will be asking questions about a recent price negotiation you have participated in during the last year. We will ask about the context of the negotiation, customer characteristics, product and service characteristics and specific negotiation tactics used by your firm and the customer.

Let us talk about the most recent LOSS deal that you have worked on. 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 already have low sales to the customer.

It is important to answer each question in the survey. There are no right or wrong answers to the questions. If you are unsure of the exact answer, please provide your best guess.

Thank you again for your help.
 
 
 
Customer Characteristics
 
 
 
We would like to understand some general information about the customer involved in this negotiation.
 
 
 
* 1. How would you describe the customer’s primary business? (Please check one.)
 
Manufacturing
 
Chemical
 
Financial Services
 
Retail
 
Consumer Products
 
Food & Beverage
 
Technology
 
Services
 
Pharma and Biotech
 
Health Care
 
Other
 
 
2. How large is this customer relative to other served by your company?
1
(One of the smallest) 		2 3 4 5 6 7 8 9 10
(One of the largest)
* Size
 
 
 
* 3. Was the customer experiencing any unusual financial or market pressure at the time of the negotiation?
 
No
 
Yes
 
 
 
* 4. Did the customer have a professional buyer handling the negotiation?
 
No
 
Yes
 
 
 
* 5. Would you say you have a close working relationship with the primary buyer at this company?
 
No
 
Yes
 
 
 
* 6. What is your best estimate for the percentage of the customer’s business that your company currently holds in this product category?
   %
 
 
 
* 7. Is this customer one of the larger accounts in your territory?
 
No
 
Yes
 
 
 
* 8. Was this negotiation focused largely on one of your firm’s new products?
 
No
 
Yes
 
 
 
Negotiation Context
 
 
 
Now we would like to ask some questions to understand the context of this negotiation.
 
 
 
* 9. What type of goods were the primary focus on the negotiation?
 
Capital good
 
Maintenance, Repair or Office Supplies
 
IT / Technology
 
Services
 
Components and parts
 
Raw materials
 
Combination of products
 
Other
 
 
 
* 10. How do you think the customer would describe the size of this purchase?
 
Very small
 
Smaller than average
 
Average
 
Larger than average
 
Very Large
 
 
 
* 11. Approximately how much sales volume was up for bid?
$    
 
 
 
* 12. To the best of your knowledge, how many vendors (including your firm) were bidding on this deal?
 
1
 
2
 
3
 
4 or more
 
Don't know
 
 
 
* 13. Were you the incumbent supplier holding a majority of the customer’s business?
 
No
 
Yes
 
 
 
* 14. Did your firm have any notable product or service failures with this customer in the 6 months prior to the negotiation?
 
No
 
Yes
 
 
Please indicate the extent to which you agree or disagree with the following statements:
1
(Strongly Disagree) 		2 3
(Neither Agree nor Disagree) 		4 5
(Strongly Agree)
* 15. The buyer had a high degree of trust that my
       firm would deliver on our commitments.
* 16. I had a high degree of trust in this buyer to
      treat us fairly.
* 17. There are many alternative vendors that could
       have met the customer’s needs for this
       purchase.
* 18. It would have been costly for the customer to
      switch vendors for this purchase.
* 19. This was a very important purchase for this
      customer.
* 20. The suppliers in this industry have
      considerable excess production capacity.
 
 
 
Product and Service Advantages
 
 
 
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.
 
 
How do your products and services compare to your competitor’s product and services?
-5
(Competitor is significantly better) 		-4 -3 -2 -1 0 1 2 3 4 5
(We are significantly better)
* 21. Product Features
* 22. Product Reliability
* 23. Service Quality
 
 
How important are the following attributes to this customer?
1
(Not at all important) 		2 3 4 5 6 7 8 9 10
(Critically important)
* 24. Feature Differences
* 25. Product Reliability
* 26. Service Quality
 
 
 
Customer Negotiation Tactics
 
 
 
In this section, we would like to explore specific tactics used by the customer during the negotiation.
 
 
Did the customer use the following tactics at any time during the purchase and negotiation process?
No Yes
* 27. Emphasized the “partnership” or “close relationship” between your firms
* 28. Canceled one or more meetings unexpectedly
* 29. Set tight deadlines without clear justification
* 30. Offered information about your competitor’s pricing
* 31. Emphasized your past product or service failures
* 32. Requested cost data for your products or company
* 33. Claimed that your products or services are undifferentiated from the
      competition
* 34. Asked for an arbitrary discount without justification
* 35. Offered future volume in exchange for a larger discount
* 36. Attempted to limit the negotiation to only price
No Yes
* 37. Tried to unbundle your offer and negotiate the price of each line item
* 38. Discovered an overlooked item after the negotiation was concluded
* 39. Made meaningful concessions to get to a deal
* 40. Provided clear information about their objectives and priorities
* 41. Acknowledged the value of their relationship with your firm
* 42. Threatened to give most or all of the business to another vendor
* 43. Offered you a “final” look to see if you would lower prices
 
 
* 44. Overall, how would you describe the customer’s negotiation style over the course of this negotiation?
 
Highly collaborative
 
Somewhat collaborative
 
Neutral
 
Somewhat aggressive
 
Highly aggressive
 
 
 
Vendor Negotiation Tactics
 
 
 
In this section, we would like to explore specific negotiation tactics used by you or your firm during the negotiation.
 
 
Did you or anyone at your firm use any of the following tactics during the course of the selling process and negotiation?
No Yes
* 45. Threaten to walk away from the deal
* 46. Provide different offers with distinct product, service and pricing
      combinations
* 47. Provide quantified estimates of cost savings the customer
      could achieve by choosing your offer
* 48. Provide quantified estimates of revenue improvements the customer
      could achieve by choosing your offer
* 49. Offer misleading information about your walk away price
* 50. Over promise on your ability to meet purchase and performance
      requirements
* 51. Used back channel communications to put pressure on the buyer
* 52. Offered lower prices in exchange for increased volume commitments
      from the customer
* 53. Offered free services or products as an alternative to a price reduction.
 
 
 
Negotiation Outcomes
 
 
 
Finally, we would like to learn about the final outcome of this negotiation.
 
 
 
* 54. How did sales volume to this customer change as a result of this negotiation?
 
Substantial decrease from prior periods
 
Modest decrease from prior periods
 
Unchanged
 
Modest increase from prior periods
 
Substantial increase from prior periods
 
 
 
55a. Approximately how much would you estimate that sales volume decreased following this negotiation?
 
0-5%
 
6-10%
 
11-15%
 
16-20%
 
More than 20%
 
 
 
55b: Approximately how much would you estimate that sales volume increased following this negotiation?
 
0-5%
 
6-10%
 
11-15%
 
16-20%
 
More than 20%
 
 
 
* 56. How did prices for the primary products change as a result of this negotiation?
 
Substantial decrease in prices
 
Modest decrease in prices
 
Mostly unchanged
 
Modest increase in prices
 
Substantial increase in prices
 
 
 
* 57. Approximately how much did prices decrease on the primary products for this negotiation?
 
1-3%
 
3-5%
 
5-7%
 
7-10%
 
More than 10%
 
 
 
* 58. Approximately how much would you estimate prices increase on the primary products for this negotiation?
 
1-3%
 
3-5%
 
5-7%
 
7-10%
 
More than 10%
 
 
 
* 60. How was your business relationship with this customer impacted as a result of this negotiation?
 
Substantially weakened
 
Somewhat weakened
 
Unchanged
 
Somewhat improved
 
Substantially improved
 
 
 
Background Information
 
 
 
We would like to get some basic information about you and your company to provide context for the negotiations about which you will be reporting.
 
 
 
61. How would you describe the industry for your division in your company?
 
Manufacturing
 
Chemical
 
Financial Services
 
Food & Beverage
 
Technology
 
Services
 
Pharma and Biotech
 
Other
 
 
 
* 62. What are your division’s approximate annual revenues?
$    
 
 
 
63. How would you describe your firm’s approach to pricing?
 
Price to cover costs plus acceptable margin
 
Price at a premium reflecting our product or service value
 
Price to capture what the market will bear
 
Price to protect and grow share
 
Other
 
 
 
* 64. What is your current job title?
 
Sales Rep
 
Sales Manager
 
Regional Sales Manager
 
Sales Director
 
VP of Sales
 
 
 
* 65. How many years have you worked for your current firm?
   
 
 
 
* 66. How many years of sales experience do you have?
   
 
 
 
* 67. Have you ever participated in formal negotiation training?
 
No
 
Yes
 
 
 
* 68. Approximately how many price negotiations do you participate in during a typical year?
   
 
 
 
* 69. On average, what percentage of your income is derived from sales commissions?
   %
 
 
 
* 70. How are your commissions determined?
 
Primarily on sales volume
 
Primarily on margin
 
A combination of sales volume and margin
 
I don't receive commissions
 
Other
 
 
 
Would you like to receive a summary of the survey results?
 
No
 
Yes