17 Tips for Convincing the Buyer to Pay More

So what do you do? You lower your price rather than negotiate. Many salespeople are afraid to stand by their price structure because of a single mistaken assumption: “If I refuse to negotiate my price, I’ll lose all my customers.” The reality is just the opposite. If you aren’t prepared to defend your price, your customers will lose respect for you.

Here are seventeen tips that will help you to negotiate the price you deserve:

1- Before the negotiation begins, prepare yourself; aim to appear keen to do the deal, but not desperate.

2- Clarify your objectives (eg price, volume, or a quick sale) and how important the deal is to you.

3- Find out what the customer wants. What features or extras do they value, and what are their priorities – price, service or delivery?

4- Once you have established the value of your product or service, present your price with confidence. Never apologize for your price. If you believe your price is correct, just assume that your customers will agree.

5- Research the customer’s position: how urgently they need your product, what they can afford and what alternatives the competition are offering.

6- Assess the value of your offering to the customer: what benefits it offers, what problems it solves for them, what alternatives it replaces.

7- Identify the strengths and weaknesses in your proposal and plan your strategy; aim to reach a deal which will suit the customer as well.

8- Decide what could be negotiable; try to identify concessions which would cost you little but which the customer would value.

9- Consider the potential impact on other deals and other customers of any concessions you make.

10- Clarify your terms and conditions from the start of the negotiation.

11- Pitch your opening price high; explain how the value in what you are offering justifies the price.

12- Know how to deal with three typical buyer tactics.

1.The Flinch: The buyer says, “Your price is what!” and they start choking. Your response: Silence. They just wanted to see if they could get a reaction out of you. Don’t react. It’s a test. Be persistent. Repeat your price and justify it.

2.The Squeeze: The buyer tells you, “You have to do better!” or “I can get it for less.” Your response:
a.Sell your unique qualifications. Take the focus off of the price. Get them to agree that yours is the one they want, and that the price is only a technicality. If they really want yours, they will find a way to pay for it.
b.Tie a string. Offer to reduce your price only in return for additional volume, or a commitment to purchase other products at full price.

3.The Sob Story: They cry, “All I have in my budget is…” or “All we can afford is…” Your response:
a.Don’t budge. Call their bluff. They may be testing to see how firm your price is.
b.Ask, “Are there any other budgets you can draw from?” Their budget for your product or service may not be the only one available to them.

13- Agree what the negotiating points are.

14- Concentrate on asking questions and listening; fend off questions aimed at
discovering your own negotiating position.

15- Test the strength of any concessions the customer asks for; ask whether they are deal-breakers, or what alternatives there are.

16- Look for reciprocation on any concessions you make: for example, an increased order size in exchange for a discount.

17- Summarize each point as it is agreed; shake hands on the deal when all the points have been covered, and follow up with a written agreement.

And at last don’t forget the Cardinal rules

Do:

– Find out what the customer wants
– Decide in advance what areas you are prepared to negotiate
– Ask questions, and listen
– Aim for reciprocation on any concessions
– Confirm the deal with a written agreement

Don’t:

– Make concessions from the start
– Reveal your negotiating position
– Throw in extra concessions for nothing

The major obstacle that prevents salespeople from receiving the price they want is the fear of rejection. One way of dealing with this fear is to lower your price. A better way is to overcome your fear by schooling yourself in assertive negotiation techniques. When you do it right, both you and your customer will feel a sense of satisfaction. Ultimately, your belief in yourself and your product or service will be your best weapon. Your confidence will be rewarded.

Remember: Negotiations are attempts to reach an agreement, not a contest to see who can win