Introduction
In the sale of non-commoditized products and services, price negotiations can be a conversation fraught with tension. Buyers want the best deal possible and fear exploitation while sellers fear objections, push-back and potential loss of sales. In this equation, the buyer is usually in a stronger position due to his ubiquitous supply of alternative providers.
A frequent mistake that sellers make is allowing the price conversation to occur too early in the process. There are tactics that purchasers will typically deploy in the hope of engaging in the price talks prematurely.
A common tactic for example is to pressure the seller for a “ballpark” price too early in the process. The danger is that out of eagerness to get the work, the seller risks under-quoting, and having to come back later with a significant price increase is much harder.
Another potential pitfall is feeling anchored to your “ballpark” figure despite scope creep beyond what you accounted for in your initial “ballpark” calculation. A further risk is that the buyer makes a snap decision based solely on price before having had a chance to really understand and evaluate the value of the product or service that you are offering.
It is vitally important for sellers to be skilled at navigating the price talks effectively!
Sales Versus Negotiation
From the moment that a potential buyer has acknowledged a need and is talking to the seller, the process has transformed from lead generation and sales to one of negotiation. The skills that need to be deployed at this time are no longer sales skills but negotiation skills.
Read more —>
In the sale of non-commoditized products and services, price negotiations can be a conversation fraught with tension. Buyers want the best deal possible and fear exploitation while sellers fear objections, push-back and potential loss of sales. In this equation, the buyer is usually in a stronger position due to his ubiquitous supply of alternative providers.
A frequent mistake that sellers make is allowing the price conversation to occur too early in the process. There are tactics that purchasers will typically deploy in the hope of engaging in the price talks prematurely.
A common tactic for example is to pressure the seller for a “ballpark” price too early in the process. The danger is that out of eagerness to get the work, the seller risks under-quoting, and having to come back later with a significant price increase is much harder.
Another potential pitfall is feeling anchored to your “ballpark” figure despite scope creep beyond what you accounted for in your initial “ballpark” calculation. A further risk is that the buyer makes a snap decision based solely on price before having had a chance to really understand and evaluate the value of the product or service that you are offering.
It is vitally important for sellers to be skilled at navigating the price talks effectively!
Sales Versus Negotiation
From the moment that a potential buyer has acknowledged a need and is talking to the seller, the process has transformed from lead generation and sales to one of negotiation. The skills that need to be deployed at this time are no longer sales skills but negotiation skills.
Read more —>
