Here are some key negotiation tactics that you should use before you cut your price. In today’s New Economy businesses and consumers are looking for the best deal. They are bombarded in the media with sales, specials, promotions and coupons. This usually means you will be facing a buyer who has done homework and will ask you to cut your price. Instead of going with the marketplace flow resist the urge and build value before discussing price.
Here are some key negotiation tactics that you should use before you cut your price. Using these tactics can help you negotiate more effectively and sell at a higher price.
DO’s
- When you meet sales resistance, try selling benefits before you
negotiate. - Plan your negotiation.
- Know what you want and what you need.
- Set your aim high.
- Know the other party.
- Establish a positive climate for negotiating.
- Identify all the issues before you begin to bargain.
- Maximize the value of each concession you give.
- Break complex negotiations down into pieces, and solve each piece one
at a time. - When you lack power, structure the negotiation around facts, figures
and hard numbers.
DON’Ts
- Be the first to concede on a major issue.
- Make unilateral concessions.
- Get caught in a price only negotiation.
- Bow to pressure.
- Be afraid to say “no”.
- Offer to split the difference.
- Rush the process – how you negotiate is as important as what you
negotiate. - Be put off by the word “no”.
- Negotiate with anyone who has less authority to make concessions than
you do. - Negotiate at times when you desperately depend on a favorable outcome.
Use these negotiation tactics to increase sales, profits and customer loyalty. Doing so takes planning, discipline and courage. It also take a mindset that projects confidence in your product, your offer and yourself. Remember once you start on the price cut road it is nearly impossible to move to the higher ground.