Why is it that most business negotiations today are more like bargaining in a street market – “The price is 25 AED” – “I’ll pay you 20 AED” – “No I need to charge you 25 AED” – “OK, let’s settle on 22 AED” – “No, no, I need at least 23 AED”…blah, blah, blah.
Is this an effective way to negotiate? Do you feel that buyers have been trained to act this way? Is this selling or persuading? If you would like to develop a more professional manner for effective negotiation read on…
Buyers in today’s market are trained to negotiate. Most only focus on how much discount they can get from the current price, luring sales people into the trap of using price as the only thing that is used to negotiate. The message here is…
When negotiating, if the other party talks price, you should talk value.
Negotiating takes place after you have attempted to close the deal. By this stage you should have understood the client’s NEEDS. Why discount further if you know that your solution will benefit them in other ways apart from the price?
Here are some common benefits that may have been identified in an earlier stage of the sales process:
- You are already saving them money on their costs for your product / service
- Your solution is making an overall saving for their company
- They are going to gain more clients
- They are going to retain their clients
- They will save time
- It makes their life easier (less stress)
- They can go home earlier
…And so on.
Why don’t sales people talk about these type of solutions rather than simply bargaining with the buyer. An effective negotiation from the sellers perspective is one that looks at the value of the offer rather than just the price. Is it always possible? Probably not. But it is up to you to make sure that you position the sale from the beginning for an effective negotiation if required.
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