Negotiating the Price You Deserve
Confidence is key to cinching the deal

You want the deal badly. You need the business. You suspect that your price is too high to begin with. So what do you do? You lower your price rather than negotiate. BIG MISTAKE.

Most salespeople are afraid to stand by their price structure because of a single mistaken assumption: “If I refuse to negotiate my price, I’ll lose the deal.” The reality is just the opposite. If you aren’t prepared to defend your price, your customer will lose respect for you. BIGGER MISTAKE.

My good friend Ed Brodow is a negotiation expert. He wrote the books, Negotiate With Confidence and Beating the Success Trap. Here are Ed’s eight tips that will help you to negotiate the price you deserve.

1. You are entitled to reasonable compensation. What is reasonable? Whatever you can convince your buyer that your product/service is worth. The operative principle here is value. No buyer will begrudge you a price that is reasonable relative to the perceived value of the product/service.
2. Don’t sell yourself short! It fascinates me when some salespeople are able to bring in the order at a premium price while others can’t seem to get by without discounting. What accounts for this? One salesperson gets up in the morning and says, “My product is great and my customers are happy to pay my price!” Another salesperson gets up and says, “My product is great, but the buyer will never pay me such-and-such!” Don’t sell yourself short and your price will follow.
3. Don’t apologize! If you believe your price is correct, just assume that your customers will agree.
4. Always be willing to walk away! It is crucial to have other potential sales in the line-up. When you know that your sales career doesn’t hinge on this one deal, you can exude confidence. And buyers will bow to confidence.
5. Once you have decided on your price, it’s not good business to tell your customers to “take it or leave it.” You must provide reasonable justification so your buyer will say, “Okay, that makes sense. I can accept that.”
   
   Give your price legitimacy: If your buyers are doing their homework, they will know you are telling the truth.
   
   Focus on the value of your product/service, not on the price. Buyers will pay for value.
6. Make the buyer work for concessions. If you appear too anxious to negotiate your price or terms downward, the buyer will perceive you as worth less. If you do lower your price, don’t give in right away. Ask for concessions in return, such as additional business or faster payment.
7. There are occasions where you may be wasting your time negotiating with a customer. If you think a buyer may be out of your price range (either below it or above it), ask: “What did you pay for this last time you bought it?” or, “What were you expecting to pay?” You may want to sell them a more or less expensive item. Or you may want to fit them into an exception category – provided you can save face.
8. Leave the customer feeling great. Remember that your objective is to create a repeat customer.
   
   Be a good listener. They will thank you for being patient with them.
   
   Sell your unique strengths. Let the customer feel like he or she is getting a one-of-a-kind.

The major obstacle that prevents you from getting the price you want is fear of rejection. Your belief in yourself and your product or service will be your best weapon. Your self-confidence will be rewarded – with a sale.

Jeffrey Gitomer is the author of The Sales Bible, and Customer Satisfaction is Worthless, Customer Loyalty is Priceless. He can be reached at 704/333-1112 or e-mail to salesman@gitomer.com.

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