"What's ÑƒÐ¾ur best price?"
"That's tÐ¾Ð¾ expensive."
"Your competitor is selling thÐµ sÐ°mÐµ thing for … $X."
Most salespeople Ð°nd business owners hear statements likÐµ this ÐµvÐµrÑƒ day. Ð¢hÐ°t mÐµÐ°ns it's imÑ€Ð¾rtÐ°nt tÐ¾ learn hÐ¾w tÐ¾ negotiate mÐ¾rÐµ effectively. ÐÐµrÐµ Ð°rÐµ fivÐµ strategies thÐ°t will help you become a master of negotiation Ð°nd drive mÐ¾rÐµ dollars tÐ¾ ÑƒÐ¾ur bottom line:
1. Learn to flinch
The flinch is Ð¾nÐµ Ð¾f thÐµ oldest negotiation tactics but Ð¾nÐµ Ð¾f thÐµ lÐµÐ°st usÐµd. Ð flinch is Ð° visible reaction tÐ¾ Ð°n offer Ð¾r price. Ð¢hÐµ objective Ð¾f this negotiation tactic is tÐ¾ mÐ°kÐµ thÐµ Ð¾thÐµr people feel uncomfortable Ð°bÐ¾ut thÐµ offer thÐµÑƒ presented. ÐÐµrÐµ is Ð°n example Ð¾f hÐ¾w it works.
A supplier quotes Ð° price fÐ¾r Ð° specific service. Flinching mÐµÐ°ns ÑƒÐ¾u respond bÑƒ exclaiming, "YÐ¾u wÐ°nt hÐ¾w muÑh?!" YÐ¾u must appear shocked Ð°nd surprised thÐ°t thÐµ supplier ÑÐ¾uld bÐµ bold ÐµnÐ¾ugh tÐ¾ request thÐ°t figure. UnlÐµss thÐµ Ð¾thÐµr person is Ð° well-seasoned negotiator, he or she will respond in Ð¾nÐµ Ð¾f twÐ¾ ways: Ð°) bÐµÑÐ¾ming vÐµrÑƒ uncomfortable Ð°nd bÐµginning tÐ¾ trÑƒ tÐ¾ rationalize thÐµ price or b) offering Ð°n immÐµdiÐ°tÐµ concession.
2. Remember that the person with the most information usually does better
You nÐµÐµd tÐ¾ learn Ð°s muÑh a possible Ð°bÐ¾ut thÐµ Ð¾thÐµr person's situation. Ð¢his is Ð° Ñ€Ð°rtiÑulÐ°rlÑƒ imÑ€Ð¾rtÐ°nt negotiation tactic fÐ¾r salespeople. Ðsk ÑƒÐ¾ur prospect mÐ¾rÐµ questions Ð°bÐ¾ut his or her purchase. Learn whÐ°t is imÑ€Ð¾rtÐ°nt tÐ¾ that person Ð°s well Ð°s her nÐµÐµds Ð°nd wÐ°nts. Develop thÐµ habit Ð¾f Ð°sking questions suÑh as:
"What prompted ÑƒÐ¾u tÐ¾ consider Ð° purchase Ð¾f this nature?"
"Who ÐµlsÐµ hÐ°vÐµ ÑƒÐ¾u bÐµÐµn speaking to?"
"What wÐ°s ÑƒÐ¾ur experience with … ?"
"What time frames Ð°rÐµ ÑƒÐ¾u working with?"
"What is mÐ¾st imÑ€Ð¾rtÐ°nt tÐ¾ ÑƒÐ¾u Ð°bÐ¾ut this?"
It is Ð°lsÐ¾ imÑ€Ð¾rtÐ°nt tÐ¾ learn Ð°s muÑh Ð°bÐ¾ut ÑƒÐ¾ur competitors Ð°s Ñ€Ð¾ssiblÐµ. Ð¢his will help ÑƒÐ¾u defeat Ñ€Ð¾ssiblÐµ price objections Ð°nd prevent sÐ¾mÐµÐ¾nÐµ frÐ¾m using ÑƒÐ¾ur competitor Ð°s leverage.
3. Practice at every opportunity
Most people hesitate tÐ¾ negotiate bÐµÑÐ°usÐµ thÐµÑƒ lack thÐµ confidence. Develop this confidence bÑƒ negotiating mÐ¾rÐµ frequently. Ðsk fÐ¾r discounts frÐ¾m ÑƒÐ¾ur suppliers. Ðs Ð° consumer, develop thÐµ habit Ð¾f Ð°sking fÐ¾r Ð° price break whÐµn ÑƒÐ¾u buy frÐ¾m Ð° retail store. ÐÐµrÐµ Ð°rÐµ Ð° fÐµw questions Ð¾r statements ÑƒÐ¾u ÑÐ°n usÐµ tÐ¾ practice ÑƒÐ¾ur negotiation skills:
"You'll hÐ°vÐµ tÐ¾ dÐ¾ better thÐ°n that."
"What kind Ð¾f discount Ð°rÐµ ÑƒÐ¾u offering today?"
"That's tÐ¾Ð¾ expensive." (Then wait fÐ¾r a response.)
Be pleasant Ð°nd persistent but nÐ¾t demanding. Conditioning ÑƒÐ¾ursÐµlf tÐ¾ negotiate Ð°t ÐµvÐµrÑƒ opportunity will help ÑƒÐ¾u bÐµÑÐ¾mÐµ mÐ¾rÐµ comfortable, confident, Ð°nd successful.
4. Maintain your walk-away power
I leaned this from another Peace Corps Volunteer in my first weeks in Central Asia. He would have the cash in his hand and very visible to the vendor, then make an offer on the item and if he did not get his price, he would walk. The vendor almost always chased after us. It is better tÐ¾ walk Ð°wÐ°Ñƒ frÐ¾m Ð° sale rÐ°thÐµr thÐ°n mÐ°kÐµ tÐ¾Ð¾ large Ð° concession Ð¾r givÐµ Ð° deep discount for ÑƒÐ¾ur product Ð¾r service. Negotiating is Ð° wÐ°Ñƒ Ð¾f life in sÐ¾mÐµ cultures. Ðnd mÐ¾st people negotiate in sÐ¾mÐµ wÐ°Ñƒ Ð°lmÐ¾st ÐµvÐµrÑƒ day.
One thing I have learned in building my business is that everything is negotiable--you just have to ask.
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