The key to successful price negotiation

Price is the most essential part of business negotiation. The negotiation party (having two or more parties) can reach a mutually acceptable price that will determine the success of the negotiation. Successful negotiation means that the negotiating parties must meet each other’s conditions. Within the scope of their own acceptance, and that they have achieved their goals under the established conditions, this means a win-win situation. However, the process of achieving a win-win negotiation is complicated and hard because the negotiators all want to come from each other. There are more benefits from this, and it is always believed that the current conditions are not the most favorable ones. Of course, negotiations will not be so endlessly debated, otherwise anything will be difficult to negotiate. In due course, the negotiators still The appropriate time for shaking hands and making peace is the psychological balance of all parties. Therefore, the win-win negotiation is to achieve the psychological balance of all parties.

To achieve a win-win negotiation, we must know how to be willing to give up. The first thing we must do is analyze the situation and make wise choices. There must be competition in the negotiations. We take the seller as an example. In the process of winning customers, there will inevitably be many competitors. Among competitors, including ourselves, we need to know ourselves and know ourselves and our opponents' strengths and weaknesses. It is best to make a SWOT analysis table. If you decide on the critical items selected by your customers, you are inferior to your opponents, and There is no absolute advantage that can be remedied, so the possibility of success in participating in this competition is very small. We should make a decisive choice and not blindly invest. Of course, there are obstacles to making this choice. But it is worth more than the investment without results.

After analysis and selection, the following enters a substantive negotiation stage with the customer. At this stage, we must first analyze the "customer value proposition" and "their own resources and capabilities". Here to explain the meaning of the two words, " "Customer value proposition" refers to what is meaningful to the customer, namely the in-depth description of the customer's real needs; "their own resources and capabilities" refers to the resources that the company itself needs to realize the "customer value proposition" and Capability. These two aspects determine our position in the negotiation process with our customers and the final result.

For the customer value proposition, several key indicators when the customer selects a product or service are reflected in the actual operation. For example, when the customer purchases a large-scale equipment, there are quality, after-sales service, price, brand, etc., then the customer chooses supply. At the same time, we will examine from these aspects. The company’s “resources and capabilities” should correspond to “customer value propositions” in specific businesses, and must elaborate on “customer value propositions” in the process of communicating with customers. And emphasize so that customers feel that you have unique capabilities and advantages in meeting their needs.

After analyzing the "customer value proposition" and "our own resources and capabilities", we know what kind of cards we can play and how we can fight. We must immediately determine the negotiation strategy. If we ourselves are meeting the "customer value proposition" With a unique competitive advantage and a certain degree of customer acceptance, the conditions we set out should be moderately high, which not only gives us a certain amount of room for manoeuvre, but also increases profit margins. If we can only satisfy it, and If you don't have characteristics, you should open up appropriate conditions for customers to feel your value for money and benefits.

After satisfying customer needs, the focus of negotiations is on the price side, and certain conditions in other aspects can be converted into prices to some extent. For customers, of course, the lower the price, the better At this time, customers will try their best to criticize your products and services to suppress prices. In this case, if you are not the only supplier, then only the appropriate price adjustment to meet the actual or psychological needs of customers. Of course, There should be no unconditional concessions in the negotiation. You should measure what you can exchange for concessions in terms of price. For example, you can ask for cash settlement, establish a long-term supply relationship or loose delivery date.

In the process of price concessions, it is necessary to grasp the extent, frequency and timing of concessions. Generally, the following rules should be followed:

1. Understand the customer's budget situation.

2. Do not take the initiative to make concessions, unless the customer requests and does not make concessions when negotiations can not be made to make concessions.

3. Do not make unnecessary concessions.

4. The frequency can not be high, and the amplitude is getting smaller and smaller, the numbers are more and more accurate.

We ourselves are often in a passive position when faced with customer purchases. This is the norm. However, for the customers, they are under pressure to purchase. In the case of certain deadlines and amounts, they must purchase what they need. Therefore, they are negotiating. We need to take advantage of this invisible pressure from our customers, and combine our own resources to increase the probability of dealing.

Only win-win negotiations can succeed.