Negotiate Price Late in the Sales Process, Never Early
There is no reason to discuss price until buying desire has been aroused. If you customer doesn’t need it, any price is too high. Discuss price only when buyers recognize what they need and why the need it. Lowering price does not necessarily make a product or service more attractive to a buyer, in fact it rarely does.
Carefully Consider the Consequences of Any Concession You Make
Without profit there is no purpose. Therefore, carefully analyze each concession before making a commitment. Any concession will become an expectation later on. Don’t give away the store or that’s all you wind up doing, all the time.
Don’t Propose a Solution with an Already Discounted Price
Purchasing agents are often evaluated by how much they save the company. If you cut price right away in your initial proposal you may actually be doing that purchasing agent a disservice. If you don’t start with significant gross profit built into the deal you don’t leave yourself any negotiating room. There are exceptions of course. If you get into a deal late, you may have to shoot your best price just to be considered.
Relax! Slow down! If the prospect wasn’t interested, you wouldn’t be negotiating. Take the time necessary to achieve a true win-win.
Never Give a Concession Without Getting One in Return
To a prospect asking for a lower price you might reply with a willingness to discount if the prospect will agree to purchase several more units during a specified time. The prospect wins by obtaining a lower unit price. You win by increasing the size of the sale. (Discuss other real life requests prospects make and how you might respond by asking for a concession.)