How To Handle Buyers Who Talk Only About Price? (And Don’t Understand Quality)

“There is no way we can go ahead with you at this price. You are way too expensive. What’s your No Regret Price?”

I was naive at sales back in 2001. I was shocked & furious at the same time with that opening statement from DGM – Purchase of a textile unit in MP, although I was mature enough to not express my anger in the meeting.

What made me so furious?

I thought how could the purchaser be so ungrateful? I had worked very hard for 3 months to solve a grave problem in their effluent treatment plant. These problems were haunting them in many ways like Pollution board notices, curbs on production capacity, huge operating costs, nearby villagers’ fury, reputation and much more. They lived with these problems for years together until I persistently observed, analysed, experimented and finally resolved the issue to satisfaction. The monetary benefit of the solution itself ran into a few crores of rupees every year.

I was praised, and appreciated by ETP in-charge, Operations GM, Factory manager and also the group VP. How can the same company now treat me like any other vendor?

I visited the client to finalize a spare order after about 7 months. ETP in charge was very happy to see me and thanked me profusely again for solving his biggest problem. He then accompanied me to the purchasing department for spares order finalization.

After the pleasantries, the first statement of DGM purchase was “There is no way we can go ahead with you at that price. You are way too expensive. What’s your No Regret Price?” I lost my temper (back then in 2001.)

Having worked only in technical services by then, I wasn’t exposed to the negotiation tactics of buyers, which I experienced and learned later. I genuinely thought this purchaser was a horrible, arrogant, ungrateful guy (who doesn’t realize how much I had saved for his company) with zero understanding of the technical requirements and gravity of the problem at hand.

Have you gone through a similar experience earlier? I am sure you did. Let me ask you…….

Are They Unreasonable?

In a few months, when I started interacting with more buyers, I realized that they are just doing their job?very sincerely. They aren’t horrible, they aren’t unreasonable, they aren’t unaware of quality, and they aren’t concerned?only?about price. They just portray themselves that way…! That way it is easier to deliver what they are hired for.

I often hear business owners or salespeople complain the way I used to. Let’s just understand and accept the fact that purchasers are an integral part of the buying process and we hit into this situation in every single order. We just have to be prepared to handle them wisely. We might think that convincing the technical, design, engineering, user or project department of the client is enough, but that’s not true.

Here are 3 tips to handle buyers during any sale.

Involve Buyers Early

Involve everyone since the early stage of order discussions. Build rapport with buyers, influencers, and users who are involved in the buying process. You should not be seeing the buyers for the first time in the final meeting. If you have built rapport with buyers, it is difficult for them to be tough on you.

Negotiation is a Game

Do not take their comments and behaviour to heart. They have practised their game very well and it works for them. Negotiation is a game and someone always wins. Either they convince you or you convince them. Like any good captain or a coach observes an opponent’s moves and tactics and creates their game plan, you need to prepare your game plan to handle objections effectively, remain in the game and win it. Objections are standard, which makes it easy for you to prepare your game plan.

Prepare Scripts

When they say “You are expensive” a reply like “No sir, We have offered the best price” is the most stupid reply. Instead, ask them; Expensive compared to what? or Whom? Expensive by how much? What would you like me to drop from the scope to match your expectation? If the price wasn’t an issue, would you release the order today?

Prepare these scripts in advance and practice them so that you don’t have to think on the go. In fact, such responses will catch them off guard and you will score a point.

All the best for your next negotiation..!