Welcome back! As you may remember, in the previous lesson we talked about the 3 most common techniques used by customers to negotiate prices. In this lesson, we’re gonna give you some more of these techniques.
So, let’s do it! Technique #1. “My boss is gonna kill me”.
Your client is trying to make you believe that there’s an evil third party dictating them the terms of the deal. It could be their boss, supervisor, tax agent, uncle Dave - pretty much anyone. What they all have in common, though, is they don’t exist!
Here’s a classic example: “I would love to do it but my boss says we can only afford to spend X amount of dollars. He’s gonna kill me if I go over budget. ” Obviously, this is a lie and manipulation.
Don’t buy it! Technique #2. “Can you do us a small favor?
” This is actually a very sneaky trick that even experienced sales reps fall for. Instead of engaging in a big argument over the terms of a deal, the client asks you for one small favor after another slowly stripping you of any profit you might make. Here’s an example: Client: Could you maybe drop the price a little?
You know, give us a tiny welcome discount of 5%? Sales rep: Uhm, I guess I could do that. (some time later) Client: I’m afraid we’re still a bit over budget with this project.
Is there any chance we could get maybe an additional 2% off? Sales rep: Okay, but only this time. (some time later again) Client: You’ve been so kind to us so far.
Is it possible for us to pay 50% of the price now and the rest after the implementation? You get the idea. All these little concessions you make eventually lead to a deal that’s barely profitable for you.
Technique #3. “Promises”. This one is quite popular among large companies.
Here, the client promises you lucrative contracts, mutually beneficial cooperation, huge orders, and whatnot - but only if you agree to their terms now. And, unlike the client’s vague promises, these terms are, in fact, quite specific. Here’s a nice example: “We need you to get this done by the end of the week.
I know, you’ll probably have to work some extra hours but, hey, don’t worry, we’ve got plenty of big orders coming. ” So what do you do when you’ve noticed your client using one of these techniques? Well, first of all, it’s actually a good sign!
Like we said before, if a client starts bargaining, it means that your offer is half-accepted. You just have to work out the terms. The more your clients bargain, the more they want your offer.
Secondly, you have to remember that customers use all these techniques unconsciously, most of the time and never against you personally. Just take a deep breath and don’t let emotions take over. Stay cool and focused.
Thirdly, exercise maximum self-control: Do not argue. Do not concede. Do not try to defend yourself.
Do not engage in pointless discussions that have nothing to do with business. Finally, stand your ground and don’t back down. No matter what technique the client may be using, just stand by your terms.
One last idea before we wrap up this lesson - do not treat the process of negotiating with a client as a battle. It’s quite the opposite. In an ideal price negotiation process, you are on the client’s side trying to find a mutually beneficial solution, in which both of your companies can make your profit.
Good luck with your negotiations!
