What can you do for me on the price?
A fantastic question when you’re buying. An inevitable inquiry when you’re selling.
How would you and your team respond at this moment?
Many people will respond to the question by immediately giving or implying the possibility of a discounted price. Again – great when you’re buying, a margin killer when you’re selling.
(Managers: How much more revenue could you add each year
by helping your team avoid the immediate jump to a discount?)
Here are the hard-dollar points to better negotiating…
- Remember that negotiation success depends more on the work you do early in the sales process than on the negotiation moment itself. It’s all about the perceived value of your offering and the buying urgency you create with your prospect. The stronger the perceived value and urgency by your prospect, the better. Great front work (e.g., asking open-ended questions, delivering key benefit statements, responding to objections appropriately, etc.) combined with the delivery of strong value/ urgency statements will further strengthen your negotiating position.
- Be prepared for the inevitable discount inquiry. Preparation feeds confidence. Always respond by letting your prospect know that a discount, if it’s possible at all, will mean they’ll need to make a larger buying commitment or give up an added feature before you can “do something on the price. By itself, avoiding the inclination to immediately jump to a discounted price can literally translate into thousands, if not tens of thousands, of extra dollars for you and your company every year.
Think value. Think urgency. Be confident.
Nothing complex. Nothing manipulative. Just simple preparation and thoughtful execution.
Get some starter ideas for your value/ urgency statements and negotiation responses.
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Copyright © 2010 by Give More Media Inc. This was written by Sam Parker. If you’d like to tell people about it somewhere (e.g., blog, newsletter, Facebook, social media), please reference Sam Parker of JustSell.com as the author and link directly to the article. Excerpts are great but please don’t publish the article in its entirety without advanced written permission (email Sam using the address at the bottom of this page).
Dan says:
So you’re telling me i’ve got a chance?
3 January 2011
Ray Punzalan says:
never let them see you sweat; be prepared for the objection of price reduction – and overcome it during your presentation, do that, and there is no reneg on price at the close; only on delivery and time frame.
1 November 2010
Sam Parker says:
Nice, Rick. Thanks.
26 August 2009
basudev says:
no i dont agry with that
24 August 2009
Rick Clark says:
That’s something to consider once we determine whether this is the right product to fulfill your needs. Once we decide that, there are several factors that go into determining the final pricing (including product availability, payment terms and timing of the purchase, etc.). First let’s make sure this is the right product for you, then we can get back to discussing the final price. Fair enough? (Build value first)!
23 August 2009
DJ Crane says:
This is all part of the value dialog … that should happen throughout the relationship. A ValueDialog is a straightforward conversation that starts with “So, What’s it Worth?”
20 August 2009
Jah says:
Raise eyebrow, condescend, “I can make it go UP. Especially if you walk away after all the work I’ve done, and then decide to come back.”
20 August 2009