Our blog on Tips To Close A Deal spoke about how you must liaison with the right contact, be aware of all the steps involved in signing the deal, be ready with every related data, information or explanation that may be asked for and follow-up regularly.
Today, we will guide you on how to negotiate successfully on pricing while closing sales.
Draw Up Your Cost Sheet With Care:
Before presenting your cost sheet to your prospective client, make sure you have included every item of cost in it. The omission of an item will result in a loss. Furthermore, you may find it difficult to incorporate it once the deal is signed.
Focus On Your Differentiators:
The features that differentiate your product/service from others give you the edge over others. Hence, while negotiating on the pricing, make sure you point out these differentiators to your prospective client so that he sees beyond.
No deal is ever signed without looking at every component of cost and negotiations on reducing it further. Hence, be ready for every component and know where to draw the line. Mark-up the components as per the standard policy in your business, and when you negotiate on them know when to say an emphatic ‘No’.
Know Your Prospective Client Well:
This entails that you need to find out why your client needs the product/service in the first place, which feature of your offering excites him, why has he considered you against the other providers in the market. Answers to these will give you a perspective on your prospective client’s desperation for your product/service and will thereby give you a good position for negotiation.
Be Aware Of Competitor Prices:
It helps to negotiate when you are aware of your competitor’s price models. Your prospective client will always quote lower prices and compare your pricing with those of others. Instead of being caught in the wrong foot on this, you can turn the tables when you show that the quotes of others don’t bother you a bit as you offer better services/products for the price you are quoting.
Develop Your Confidence:
Deal and price negotiations require patience and a lot of confidence. Make sure you do not come across as desperate and on the verge of flinching. This will give an opportunity to your counterpart to take advantage of your position and squeeze a raw deal out of you. Talk authoritatively on your pricing model, yet do not come across as arrogant.
Be Prepared To Walk Out:
If the pricing is headed south in a way that may be difficult for you to service it, walk out of the deal. It is better to walkout at the deal stage than face financial difficulties after making a commitment. What tips do you swear by when you are negotiating to price? Tell us about it.