Tip # 9 – Know your pricing models and negotiation tactics

February 17th, 2011 @ admin

In tough times, everyone wants a deal, wants a break, wants you to charge them less. I do not care if they are one of the biggest companies in the world; heck, I was at the head quarters of a Billion plus dollar company in Santa Clara yesterday and they wanted me to “charge them less”. It was the right power play and I respect them for it.

I would say expect every customer to look for ways to spend less money with you. I would consider having a few different pricing models and that will give you flexibility in how people price your product or service. But please make sure you “Protect Yourself”.

Don’t forget the fundamentals:

Problem Situation: One common negotiating tactic people use is explain how stand to win more business after they sign this deal with you and so they want you to drop prices for them now. This sounds well and good from a conversational perspective, but there are no guarantees.

Solution: Do not buy into this up front, but maybe build in performance based incentives into a working relationships with your customer, be creative and even consider trading resources if necessary.

I would suggest you do not ignore the fundamentals of the 1st deal and get compensated on the merits and value it offers both parties. Remember; No deal is better than a bad deal.

Here is a video interview at www.sellingpower.com that alludes to what I am talking about.

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Category : 25 Tips to Selling in a Recession &Business Strategy &Sales