Who doesn’t want the best possible price when buying something?
Whether it’s B2B or B2C, customers have come to expect negotiating as part of the sales process and are prepared to talk you down in price.
To keep your customers happy while remaining profitable use these simple negotiating strategies:
1. Be prepared to negotiate.
Know what your entry and exit prices are before you begin negotiating.
This helps you to quickly see if a deal will be profitable for you or not. You’ll also be prepared to walk away when any unreasonable demands are made.
2. Don’t rush into negotiating too early.
Find out your customer’s budget before you start to negotiate.
Don’t waste valuable time negotiating with a customer only to find out later that your product or service is out of their budget. Ask them questions early on about their needs, time-frame and budget so you successfully negotiate the sale.
3. Never give up anything without getting something in return.
Get a commitment or signed contract before you negotiate a customer’s asking price.
Avoid dropping your price too early when negotiating or your buyer will think there’s room to negotiate further. This helps you maintain control of the sale and keeps your profit as high as possible.
4. Know when to be quiet.
After you’ve given your customer a price, be quiet.
It’s important when negotiating that you give a customer time to think about the price you’ve offered them. This strategy prevents you from lowering your price unnecessarily if they don’t respond. Staying quiet implies you’re firm on the price until they give you a reason to lower it. Their silence doesn’t mean your offer isn’t being considered.
5. Be aware of your body language and non-verbal communication.
Resist crossing your arms over your chest during negotiating so you don’t seem closed off.
Show customers you’re receptive and open to working with them by smiling, using expansive gestures and mirroring them if possible. On the phone you can use a similar tone to match theirs and in person subtly copy their body language or gestures.