Everybody wants to feel like they’re getting a good deal, regardless of what the transaction is for. However, as a businessperson, you have more to think about than just saving a few dollars. To run a profitable business, you’ve got to have good margins, which requires you to have strategic pricing. So when your customers or clients start trying to negotiate prices down for your products or services, especially if your industry doesn’t normally deal with negotiations, it can be hard to know how to handle it. So to help those working with customers know how to deal with this situation, here are three tips for negotiating prices with clients or customers.
Watch Your Mouth
As a business, we usually get in trouble with negotiations when we speak without thinking. Because negotiations require us to be quick on our feet, this can often lead to revealing more than we should or saying things we shouldn’t if we want to keep the upper hand in the negotiations. Mike Hofman, a contributor to Inc.com, shares that some things you should avoid saying during negotiations include the word “between”, expressing that you think the negotiations are getting close to an end, asking them to state their prefered number, or exerting too much power too forcefully. By watching your mouth for these words, phrases or sentiments, you will have a much more constructive time negotiating.
Finding An Easy Out
For businesses like Ford dealerships in Fort Lauderdale, negotiations are just a part of everyday life. In these scenarios, or if you have the occasional client or customer who wants to negotiate, Tim Parker, a contributor to BusinessKnowHow.com, suggests finding an easy way out by having a few go-to negotiation strategies. These could include a standard discount rate you’re able to offer, agreeing to price-match where appropriate, or giving a discount for cash payments. Employing one or more of these options will make it simple for your employees to negotiate if and when the situation arises without cutting too much into your margins.
Move Away From Price
Although price is usually the first thing customers or clients look to negotiate, Ken Dooley, a contributor to CustomerExperienceInsight.com, suggests looking at other ways to negotiate that aren’t centered around price specifically. To do this, Dooley recommends listening to what your customer is saying about their problems with making the sale as-is. If you’re able to uncover the real reasoning behind these issues, you could negotiate to resolve those issues rather than knocking down the price. This could mesn offering creative solutions, so be prepared for what the outcome of these negotiations could mean to your company before agreeing on anything.
You never want to get in a situation while negotiating with customers or clients where you’re losing money on the sale. To help keep this from happening, use the tips mentioned above to find more success when negotiating price.
Originally posted on August 25, 2016 @ 2:50 am