Five Keys to Negotiating Power

People who want to bargain and haggle over the price of your products or services usually fall into one of four categories:
Prospects about to make a large purchase,
Purchasers who have been told by their employers to try and get a lower price,
Customers who are testing you, or
Habitual price shoppers.
WHEN THEY WANT TO NEGOTIATE

When a major account wants to bargain over the terms of an annual agreement or a large purchase, negotiation is often an important part of the process.

If a prospect wants to haggle over the price of a single toner or a dozen ribbons, usually this is a "price shopper" who is ONLY looking for the lowest price NOT the best service, quality or value. If you run into a lot of price shoppers, look at last year’s Issue 21 of Weekly Sales Tips, titled: "Are you Attracting Price Shoppers?"

FIVE KEYS TO NEGOTIATING POWER

Following are five "don’ts" to keep in mind when negotiating:

Don’t make concessions too quickly or too easily.

If you lower your price too EARLY in the conversation, the prospect will feel he/she can easily get a much LOWER price. S/he may also feel you do not have confidence in your products.

Don’t create anxieties with questions.

Instead, use questions to CLARIFY the customer’s need and guide the conversation to new alternatives and ideas, i.e.: how much and how often do they buy the product? Questions should seek information, spark the thinking process and lead to the close of the negotiation in favor of a win/win solution for both sides.

Don’t interrupt or contradict the customer.

Instead, LISTEN carefully to everything the customer says, then evaluate it thoroughly. Even when you try to listen, you may find yourself jumping in with a question before the other person has a chance to elaborate. Take notes and evaluate after the prospect has finished speaking.

Don’t use technical terms, jargon or cliches without clarification. Use language that is clear, direct and to the point. Jargon and cliches can CONFUSE the communication/negotiation process.
Don’t fall into a negotiating rut.

Don’t depend on strategies and tactics whose only recommendation is that they worked once before. Every situation is different. Keep in mind that there may be many different alternatives.

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