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Please enjoy this guest post by Chris Blanton, the Business Doctor.
In a negotiation some feel that the first person to name a figure loses. Information is valuable, and the one who possesses more of it is better positioned in a transaction.
In sales where the seller publishes the price, buyers know the seller’s figure but the seller is not similarly armed with the buyers’. Thus a seller who negotiates puts herself at a disadvantage.
Prospects sometimes push for discounts. But customers are rarely expecting a reduction. They are probing your confidence level. If you waver and start selling on price, they will interpret this as a lack of confidence in your product or service.
Guess what? Your clients would prefer you held firm.
Picture this: You’re at a car lot. You want to buy a car and you’ve got your eye on a ten thousand dollar beauty. To demonstrate you aren’t a pushover, you fire off to the salesperson “I like this car but I didn’t want to spend more than eight thousand dollars,” and the rep instantly replies “$8000? Sold!”
How confident are you in your new purchase? Worried you’ve just made a huge mistake?
Imagine the same scenario but instead the rep smiles at your figure and confidently explains the value of the vehicle.
Which experience would you rather have?
This is an extreme case just to demonstrate my point. But even in a typical transaction your customers similarly look to you and the rest of your company’s employees to demonstrate the value of your offerings. A customer who starts to haggle is usually questioning value. They will become unsettled if you show a lack of conviction.
If you encounter a price-focused customer, don’t react; seek to rebuild their trust by addressing the value. Quiet confidence always calms anxiety. Conviction is the secret to POWER negotiation! Until next time, profitable business All!
Chris Blanton is the former managing partner of Sterling Group, a consulting firm he co-founded that taught innovative business principles to ignite profitability to company executives around the world. A part-time consultant, entrepreneur, investor, and life long martial artist, he makes his home on the West Coast and blogs at the Business Doctor. Connect with Chris on twitter — @cmblanton.
About Denise O'Berry
[...] Entrepreneur Magazine, and I’ve also been a guest contributor for other notable blogs like this Denise O’Beery one. And I’m also producing the first Ingenious Business podcast which I will finish and [...]