Business owners have to engage in all sorts of negotiations. From contracts to purchases, negotiation is an essential part of the process. There is no guaranteed formula that will work in all sorts of transactions. It depends on who you are dealing with and what goal you are trying to achieve. You can’t expect everything to be favorable for you in the end. Negotiation also entails compromise. Here are some techniques you can use so the results would be good enough for your business.
Make the other side understand the down sides
When making deals, you usually think of how you can convince the other party to believe in what you are offering. For instance, you would want to purchase equipment. You are asking for a lower price for the said equipment and your argument is that you are buying a lot. Don’t just talk about why you want to buy the equipment because it will just make them go hard on you. Instead, mention what could possibly happen if no deal takes place. This will make them realize that partnering with you is a better choice.
Again, this is not a magic formula, but it can work to your advantage if used the right way. There are a lot of paths to cross in making a deal and you should try whatever it is that could make it more favorable for you.
Offer a price range
If you are in the business of selling stuff, you want to make sure that you maximize the profit as much as possible. Selling the items at a higher cost is a good way to do so. However, the other party will most likely ask for a lower price. Therefore, when talking about the price, give them a range. The lowest figure should be the lowest amount you can tolerate where you can still get profits in the end. However, you also need to make the other party realize the benefits of going higher. Explain the difference between what they are getting for the amount on the lower range and upper range. If even the lower range number is still a question for them, you are dealing with people who are not real customers in the first place.
Don’t give in to threats
When making deals, the worst thing you would hear is the other side saying that the deal is off. This is a threat that you should never give in to. Just because you are the seller does not mean you only have them as the buyer. You must have this mentality that there are still other customers out there and the absence of this one won’t lead to the failure of the business.
As soon as the other side tells you to give them a discount or the deal is off, don’t say ok. Stick with the previous amount that you have already given. Agreeing to a discount is like saying that the last amount was a lie. How can they trust you know for future pricing? They might even go lower. On the other hand, if they are honest in telling you that they could really not afford the price, but they want the products or services you are providing, agree to the discount, provided that you are also taking something off the table. They must get exactly what they pay for.
In making deals, you have to be tough but also be compassionate. It is a delicate balance that you need to be really careful of.
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