10 Tips to help you negotiate your price
10 Tips to help you negotiate your price
Step inside the shoes of your client for a moment and think about her fears – does she know she can trust you? How does she know you will deliver good value for money? Will you make her look stupid for buying from you?
Make sure you understand exactly what she wants and what she expects to receive from you. Invest time in educating your client how you operate.
2. Plan in advance
Make a list of what you have to negotiate. What will your customer insist on and how flexible are you prepared to be? Can you offer delivery before or after Christmas? Can you offer a six month or twelve month warranty … or would he prefer a monthly contract? Look for solutions, not problems, and keep thinking creatively. Ask him: ‘Would you prefer this or what about that?’
3. Make sure you are dealing with the person who has the authority to say yes
If possible, find out how much discretion the person you are dealing with has, and who else is involved in the purchase decision. How are you going to sell them anything if the person you are dealing with has no authority to buy?
4. Don’t mention your price too soon
Get your client thinking about what you are going to give her before you start her thinking about what she’s going to have to pay you. Build her confidence and reassure her that the quality will be just what she wants and make sure it is, or let the client go.
5. Test them
Tell your customer what others are paying and how happy they are with your products and service. Then test your customer by asking: What were you expecting to pay? How much are you paying now? What are your usual rates? Is there a company policy on this? What did you pay the last person?
6. Sandwich your price between benefits
When you tell your customer how much it costs tell her the significance of all that she is getting and how it will benefit her.
7. Compare the product quality to the price difference
If you are making a comparison between your own products and services, or those of a competitor, tell your client all the extra special effort, or components, you put in. Remember: It’s not the price that’s important it’s what the product does for her.
If your product or service is higher priced don’t be afraid of the competition. Be proud. You are better. Likewise, if you are cheaper – be proud. Tell your customer how and why you made it cheaper, and what the benefit of this is.
8. Show the penalties of not buying
What might she miss out on if she doesn’t buy now? Show the savings - gross them up or show them as extra profits if they are reselling your goods.
9. Explain the cost (or the savings) in a way that is meaningful to your customer
Reduce the expense into smaller units e.g. $520 extra is just $10 a week; $1.42 per day: a few cents per hour. If it’s a large purchase you can work it over the lifetime of the product.
Compare the value of your deal: What else could they spend their money on? Put it in their language. For example, the cost is less than one meal out. You only need to make one sale to cover it.
10. Create some urgency
Motivate your customer to act quickly. Make them an offer, for example: Buy one and get one free; Free gift with purchase; Extended five year warranty.
Focus their attention on deciding now, not later. Give them a deadline on the offer. ‘Offer valid until [date].’ You don’t want them to procrastinate any longer.
10 Tips to help you negotiate your price - To learn more about this author, visit Jane Francis's Website.
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1. See your price from your client’s point of view
Step inside the shoes of your client for a moment and think about her fears – does she know she can trust you? How does she know you will deliver good value for money? Will you make her look stupid for buying from you?
Make sure you understand exactly what she wants and what she expects to receive from you. Invest time in educating your client how you operate.
2. Plan in advance
Make a list of what you have to negotiate. What will your customer insist on and how flexible are you prepared to be? Can you offer delivery before or after Christmas? Can you offer a six month or twelve month warranty … or would he prefer a monthly contract? Look for solutions, not problems, and keep thinking creatively. Ask him: ‘Would you prefer this or what about that?’
3. Make sure you are dealing with the person who has the authority to say yes
If possible, find out how much discretion the person you are dealing with has, and who else is involved in the purchase decision. How are you going to sell them anything if the person you are dealing with has no authority to buy?
4. Don’t mention your price too soon
Get your client thinking about what you are going to give her before you start her thinking about what she’s going to have to pay you. Build her confidence and reassure her that the quality will be just what she wants and make sure it is, or let the client go.
5. Test them
Tell your customer what others are paying and how happy they are with your products and service. Then test your customer by asking: What were you expecting to pay? How much are you paying now? What are your usual rates? Is there a company policy on this? What did you pay the last person?
6. Sandwich your price between benefits
When you tell your customer how much it costs tell her the significance of all that she is getting and how it will benefit her.
7. Compare the product quality to the price difference
If you are making a comparison between your own products and services, or those of a competitor, tell your client all the extra special effort, or components, you put in. Remember: It’s not the price that’s important it’s what the product does for her.
If your product or service is higher priced don’t be afraid of the competition. Be proud. You are better. Likewise, if you are cheaper – be proud. Tell your customer how and why you made it cheaper, and what the benefit of this is.
8. Show the penalties of not buying
What might she miss out on if she doesn’t buy now? Show the savings - gross them up or show them as extra profits if they are reselling your goods.
9. Explain the cost (or the savings) in a way that is meaningful to your customer
Reduce the expense into smaller units e.g. $520 extra is just $10 a week; $1.42 per day: a few cents per hour. If it’s a large purchase you can work it over the lifetime of the product.
Compare the value of your deal: What else could they spend their money on? Put it in their language. For example, the cost is less than one meal out. You only need to make one sale to cover it.
10. Create some urgency
Motivate your customer to act quickly. Make them an offer, for example: Buy one and get one free; Free gift with purchase; Extended five year warranty.
Focus their attention on deciding now, not later. Give them a deadline on the offer. ‘Offer valid until [date].’ You don’t want them to procrastinate any longer.
10 Tips to help you negotiate your price - To learn more about this author, visit Jane Francis's Website.
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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