Negotiating Price, Don't Negotiate Price

“Everything is negotiable. Whether or not the negotiation is easy is another thing.”

Who among you has never had the experience of getting involved in lengthy negotiations over rates?

Regardless of how reasonable or competitive you believe your pricing is, you'll likely run into at least some customers who want a better deal. It can be tempting to play hardball, or in some cases, walk away—but if you can negotiate a win-win solution, you'll have the chance to preserve not only your own interests, but possibly build a long-lasting customer relationship as well.

Now let’s talk about negotiation:

  • Most price objections are value objections

  • What your client might mean when you get a price objection

  • The goal is to understand what your client really wants

  • Don’t cut your price for a proof of concept, and don’t cut your price unless you’re getting something valuable in return

Smart buyers ask about price out of instinct, out of principal, if only because they’ve been taught that the first offer isn’t real anyway.

This doesn’t mean they’re not going to buy. It also doesn’t mean they’re not going to buy at the first-quoted price. Price objection isn’t always about the price, but rather, it often means something else. That’s why a prospect objects on price, don’t become defensive or resort to discounting. Instead, ask questions and listen. Explore, with the prospect, how your product or service will impact their business economics.

People know you are in business to make money, but no one wants to feel like they are being screwed over. If your margins are reasonable and you explain your costs to potential customers, they shouldn’t have an issue.

Mentioned In This Episode:

Never Split the Difference by Chris Voss
Serve Don’t Sell Newsletter
Serve Don’t Sell Book Pre-Launch Updates
Sales Training

Past Episodes:

Finding the Pain
Setting Goals
Determining Value

PodcastListon Witherill