| And Other Negotiation Advice Designed to Keep | | | | with their needs met as well. If, however, you |
| Your Value High and Your Customers Happy | | | | ultimately do have to reduce your price, make |
| Despite your best attempts to sell value and | | | | sure to follow these two rules: |
| remain firm on your price, some clients will press | | | | 1. Never reduce your price without getting |
| ahead with their request for a discount. After a | | | | something in return. Getting something in |
| solid attempt from you to reassure them that | | | | exchange for a pricing concession is key to |
| your price is fair, if your prospect is still pushing | | | | managing customer expectations that future |
| for a discount, you have a choice. Walk away | | | | discounts will not be easily dished out. As with the |
| from the business because you want to maintain | | | | "no money" concessions above, what you get in |
| your price or slowly start to give concessions in | | | | return for a price reduction will be unique to your |
| an attempt to win (or save) the business. | | | | business and markets. It could include references |
| If you want to give concessions, following a | | | | or case studies, a bigger order, introductions to |
| simple system will ensure a profitable negotiation. | | | | senior level executives or cash up front, etc… |
| Your First Step | | | | Again, whatever you ask for, prepare the list in |
| The first step, always, is to find something else to | | | | advance so you can respond quickly and |
| give up that doesn't reduce your price. Free | | | | smoothly. |
| shipping. Extra manuals or training. A client profile | | | | 2. Nothing is worse than coming to an agreement |
| on your Web site. What you choose will be | | | | on price (especially a reduced price!) only to find |
| specific to your business, your markets and your | | | | out that your prospect is still looking for other |
| client base. The key is to have the list of things | | | | concessions. Be sure to get a firm verbal |
| you're willing to offer prepared in advance, so you | | | | agreement from the customer that this discount |
| can draw on it during the negotiation. | | | | is all they will need to get the deal done. Try |
| It's hard to think creatively in the heat of a | | | | asking them something like "I'm not sure if I can |
| negotiation, so planning ahead can give you a | | | | get you this price, but if I can, is it fair to say |
| ready-made solution that leaves both you and the | | | | that we can go ahead?" or "I'm not sure I can get |
| client feeling satisfied with the transaction. Your | | | | this discount for you. If I can, though, are you |
| goal is to maintain the price integrity of your | | | | willing to ….?” |
| product while delivering extra value to the | | | | By asking them this last question, you can ensure |
| customer with a service that does not cost you | | | | you get all the issues on the table first, giving you |
| anything (or very little). For example, if the | | | | the chance to deal with them fairly once and for |
| customer asks you for a discount consider | | | | all. So what goes after the “willing to”…. |
| offering them following instead: | | | | in that question? I believe that if you must, |
| 1. An unconditional money back guarantee | | | | absolutely must reduce your price to win the |
| 2. Free shipping | | | | business NEVER let that price drop without getting |
| 3. Payment terms | | | | something in return. “No Free Gifts” my |
| 4. Payment with credit card | | | | friend Steve Kraner taught me. Try some of |
| 5. Free training CD’s or in house training by | | | | these best practice ideas submitted from engage |
| you on the product | | | | clients for finishing the question… |
| 6. Access to a public seminar or trade show your | | | | "I'm not sure I can get this discount for you. If I |
| company is sponsoring | | | | can, though, are you willing to ….? |
| 7. Free set up (if you are a printer/embroidery | | | | 1. Place your order today? |
| promotional products company) | | | | 2. Provide full payment up front? |
| 8. Future discounts based on volume: the | | | | 3. Place a larger order? |
| company will pay full price today and receive a | | | | 4. Provide me 3 qualified referrals / introductions? |
| discount on a future order. You can also do this | | | | 5. Give us a testimonial or case study? |
| as a gift certificate for them to use later. | | | | 6. All us to sponsor the event you are organizing? |
| 9. Free electronic copies or hard copies of your | | | | 7. Invite me to the event you are having for their |
| help / training manuals | | | | clients? |
| 10. Upgraded support levels | | | | 8. Provide me space in your newsletter for a |
| 11. Participation on your client advisory board or | | | | monthly column? |
| panel | | | | 9. Provide my company an exclusive purchasing |
| About half the time, your customer will take you | | | | arrangement? |
| up on the offer to provide a “non monetary | | | | 10. Introduce me to additional departments or |
| concession.” The other half will continue | | | | internal decision makers? |
| pressing for a price discount because in | | | | 11. Have us in for a “lunch and learn |
| today’s marketplace it has become all too | | | | session” with your staff? |
| common for one supplier to attempt to trump all | | | | This step is easy to do if you have conviction. |
| others by lowering their price. In many cases, | | | | The first step to finding better clients – ones |
| your clients are being trained by the competition | | | | that focus on value and not price – is making |
| and other vendors to demand lower pricing from | | | | sure you are 100% confident that you are |
| you. It’s a short term strategy, and it does | | | | delivering such a high value to the marketplace. |
| little to benefit buyers but that doesn’t make | | | | Confident that all buyers will want to own it at full |
| it any easier to assure prospects they’ll get | | | | cost. When you do believe this, you will not have |
| equal or better ROI by paying more. Sometimes, | | | | any trouble asking for something valuable in return |
| a prospect just wants you to lower your price, | | | | for your price discount. |
| and you (with your company’s support) will | | | | Remember that what you ask for does not have |
| need to consider doing it. | | | | too be of equal monetary value. In fact it can be |
| Your Second Step | | | | free for the customer to provide as long as it has |
| If you feel you have to give up a discount in | | | | value for you. The goal is to employ reciprocity |
| order to close the sale, do yourself a huge favor | | | | – you will gladly scratch the customers back |
| and always ask them one of the two following | | | | as long as they are willing to scratch yours! |
| questions first: | | | | Creating equality in your client relationships |
| "What is important to you about an x% | | | | ensures that you will have a long lasting trust |
| discount?" or | | | | based relationship which reduces the amount of |
| "Why is an x% discount important to you?" | | | | “shopping” the customer does each time |
| These questions will flush out any last details that | | | | they need to order. This increases your profits, |
| could help you find a different way to structure | | | | decreases your sales cycle and encourages |
| the terms and pricing. This allows you to keep | | | | referrals. |
| your price while letting the customer walk away | | | | |