1. Sell the discounts Some people just love a bargain, in fact, they must get a bargain. Keep their attention on the $300 they will save, not the $6,000 they will be spending.
Most people relate to cash better than a percentage – three hundred dollars is far more meaningful that 5%!
Use price points to ease your customer through the psychological pain barrier - $9,999 looks a lot less than $10,000.00.
2. Ask them to make a counter proposal Get your client to bring their ideas into the open. See how far apart you are. Do a reality check, go back to the original brief and specifications and check they are all mandatory. Since starting the purchase process it is possible your client may have altered his expectations.
3. Price bargain ‘If you want a better price, give me a better order.’ Search for joint benefits and win-win solutions. For example, you could lower the price if the customer does part of the job or pays you cash in advance.
It is in the nature of your customer to want all the discounts you give him. It is not his job, nor is he ever likely to tell you you’re too cheap.
4. Don’t drop your price before it is necessary Don’t become too committed to your lowest price early on. Try to hold your price by giving them more value – an extended warranty, a free upgrade. You can always come down later but it’s difficult to go up.
If you give them something make sure they appreciate you more for it.
5. Leave yourself room to negotiate Allow for contingencies. Give yourself the right to add or alter the quotation later if the client changes their mind in some way, or you have unexpected difficulties sourcing raw materials and the like. Put your conditions in writing to save any misunderstandings later.
6. Keep your objectivity If the negotiation is overheating take time to think things over. Be wary of high pressure tactics. Give yourself an ‘out clause’ like referring to a higher authority (your boss, your lawyer, your mother) so you have time to take the deal away and review it.
7. Practice saying no, maybe, okay then Negotiating is a two way process – you can dance to and fro for ages – but always keep in mind the bottom-line and be prepared to walk away. Use your intuition and don’t allow yourself to be bullied. You can always say no but do it in such a way that you leave the door open so you can change your mind and say ‘yes’ later if you think you might want to.
8. Listen for the ticking clock One property investor buys a house every year in the week prior to Christmas. She gets a great deal and the owner goes on holiday able to make plans for the future. Make sure you know your client’s timeline and use this information to your advantage.
Also make sure your contract has specific time frames e.g. this quotation is valid until << date >>. You want to retain control over your time – this is your life.
9. Assume nothing When you present the quotation, some clients go quiet for a while before responding. Others react as if they’ve never seen or heard anything so preposterous … You can never know for sure what they’re thinking. Ask as many questions as you can to try to find out and be confident you know why you charge what you do, what’s negotiable and what’s not.
10. Keep an open mind If you find the market situation or your competitor’s tactics have changed you may need to recheck your facts. Don’t believe that you offer the right price for all time – do some research and intervene, if necessary.
10 MORE tips to help you negotiate your price - To learn more about this author, visit Jane Francis's Website.
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