A Sale Idea
When you offer a low price without being asked, you set the tone for a low ball negotiation. The worst thing sellers can do is to get baited by offering a price before need is established. When someone asks, How much is it? You must realize you are being baited. Sadly, you will jump on the question because someone didn’t train you properly and you believe it’s a buying signal. It isn’t a buying signal unless a true discussion of need has already occurred.
There is nothing wrong with price negotiation, but the timing has to be practically perfect. Value and need must be established first, and you must be convinced that the buyer is sincerely a good prospect. If someone is convinced your product will sell the stock of recliners in the warehouse, there is a price he is willing to pay to make those chairs go away. It’s not the cost of the spot (commercial) unless you are trained to make it about the cost of the spot.
To establish need, we need to ask these questions. You mentioned you have 150 chairs in the warehouse that you need to get rid of. How much is it costing you to have them in your warehouse? How long have they been there? What happens if you don’t sell them? Why aren’t they selling? When do you need to have them sold by? Are you paying a flooring cost on those chairs? When do the new model chairs come out?
Only after you have helped the client see the need to move those chairs out do you add, “If I could sell 100% of those chairs by X date, what would you be willing to pay me to move them?” You have established value before price, and helped the client realize the need to get them out of the warehouse.
It’s always good to ask for a deal. Always! The good ones say no the first, second, and third time. Sometimes they never cave, and if I need or want the product or service, I pay the price.
We could begin to disrespect people who offer a “good deal” before they know about me or my business, just as some disrespect those who cave to early. If we were to approach a potential client with signs of weakness, it is unlikely you will be able to get your price up. Simply solve their problems and price becomes a secondary issue.
It isn’t worth your time to offer deals, discounts or specials. It’s not good for your income, your company or your reputation and it’s not good for your industry.
There is nothing wrong with price negotiation, but the timing has to be practically perfect. Value and need must be established first, and you must be convinced that the buyer is sincerely a good prospect. If someone is convinced your product will sell the stock of recliners in the warehouse, there is a price he is willing to pay to make those chairs go away. It’s not the cost of the spot (commercial) unless you are trained to make it about the cost of the spot.
To establish need, we need to ask these questions. You mentioned you have 150 chairs in the warehouse that you need to get rid of. How much is it costing you to have them in your warehouse? How long have they been there? What happens if you don’t sell them? Why aren’t they selling? When do you need to have them sold by? Are you paying a flooring cost on those chairs? When do the new model chairs come out?
Only after you have helped the client see the need to move those chairs out do you add, “If I could sell 100% of those chairs by X date, what would you be willing to pay me to move them?” You have established value before price, and helped the client realize the need to get them out of the warehouse.
It’s always good to ask for a deal. Always! The good ones say no the first, second, and third time. Sometimes they never cave, and if I need or want the product or service, I pay the price.
We could begin to disrespect people who offer a “good deal” before they know about me or my business, just as some disrespect those who cave to early. If we were to approach a potential client with signs of weakness, it is unlikely you will be able to get your price up. Simply solve their problems and price becomes a secondary issue.
It isn’t worth your time to offer deals, discounts or specials. It’s not good for your income, your company or your reputation and it’s not good for your industry.
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