SALES AND NEGOCIATION TECHNIQUES

Practice vocabulary and concepts related to sales models, pricing strategies, communication techniques, and negotiation styles within the hospitality industry.

Sale

The process of persuading a potential buyer to buy a product or service by communicating its value and appeal.

Negotiation

An interactive process between two or more parties with authority to adjust conditions to reach a mutual agreement while avoiding disputes.

DMC

Destination Management Companies, which act as incoming agencies.

MICE

An acronym for Meetings, Incentives, Conferences, and Exhibitions agencies.

Psychological or Learning Model

A consumer behavior theory based on Maslow’s hierarchy of needs (physiological, psychological, and self-fulfilment).

Sociological Model

A model stating that purchasing habits are influenced by a person's social standing, interest groups, family, work, and hobbies.

Psychoanalytical Model

Based on Freud's thesis, it suggests that conscious and unconscious motives, such as social values or individual opinions on appearance (smells, music), drive behavior.

Economic Model

A model where consumers evaluate an item's value against its price using the price effect, substitution effect, and income effect.

Price Effect

An economic concept where the price of an item determines the quantity a consumer buys.

Substitution Effect

An economic concept where consumer purchasing is influenced by competition.

Income Effect

An economic concept where a consumer's income level affects the quantity of goods they purchase.

Price Skimming

Charging high prices for innovative products, such as an air fryer.

Penetration Pricing

Offering lower pricing during the initial offering or opening phase of a product or service.

Economy Pricing

Setting a competitive price that is lower than the market value for sensitive markets.

Dynamic Pricing

Pricing that is adjusted daily according to offer and demand.

BAR

Best Available Rate, a type of hotel pricing often used for loyal clients or leisure packages.

Rule 4'20

The face-to-face greeting guidelines: the first 20 seconds (entrance/look), first 20 gestures (handshake/posture), first 20 words (positive/simple), and first 20 centimetres (guest circle space).

Leading (Reflective) Questions

Questions used to influence decisions, often phrased as: "If we reduce our offer by $5\%$, then we are on the same level as your budget, would you confirm with this updated offer?"

Rhetorical or Mirror Questions

Questions that encourage listeners to develop their own conclusions, such as: "Isn’t this what you are looking for?"

SONCASE

A framework to understand customer motivations: Safety, Pride, New, Comfort, Money (Argent), Sympathy, and Environment.

CAP

A product pitch method consisting of Characteristic (product detail), Advantage (benefit for the client), and Proof (evidence like figures or feedback).

Presumptive Closing

A closing technique where the seller assumes the sale is made, for example: "I’ll send you the contract by Monday next week."

Distributive Negotiation

A competitive "win-lose" negotiation style where parties divide resources (a fixed pie) at each other's expense.

Integrative or Collaborative Negotiation

A "win-win" negotiation style where parties share information to create a mutually beneficial agreement and maximize value.

Power-based Negotiation

A style where one party uses status, influence, threats, or control over resources to force an agreement.

BATNA

The Best Alternative to a Negotiated Agreement, used to provide a plan B and determine the reservation point if negotiations fail.

Reservation Point

The worst price or lowest valued alternative a negotiator is willing to accept.

Avoidance (I lose – You lose)

A style used by negotiators who dislike conflict or when emotions run high, and the benefit of not negotiating outweighs the value of the investment.

Accommodate – Conciliation (I lose – You win)

A style where a negotiator gives the other party what they want, typically used when in a weak position.

Compromise (I lose/Win some – You lose/Win some)

A negotiation result where both parties settle for less than what they originally wanted or needed.

Net rooms commission calculation

The process of dividing the room total by $1.06$ (the $6\%$ VAT) before multiplying by the commission percentage.