Negotiate to Close

In the early days of my career at CADD Centre, I started as a CADD engineer and was promoted to Centre Manager within three months. Tasked with building the company's business, I was eager to prove myself as a capable leader, especially since my predecessor had left unexpectedly.

Negotiation Case 1: Bharat Fritz Werner (BFW)

BFW was looking to train 15 engineers in CAD. Two months prior, my predecessor had offered them training at Rs.15,000 per engineer—half our standard price of Rs.30,000. This time, I was determined to secure our standard pricing. However, I wondered how to justify double the price within such a short span.

Then, my boss recommended 'Negotiate to Close' by Gary Karass. The book emphasised that buyers, too, are at risk when they lose a reliable vendor. With this insight, I contacted Mr. Ashtagi, the General Manager of BFW.

At 23 years old, I was met with scepticism. Mr. Ashtagi laughed at my insistence on maintaining the Rs.30,000 price point and asked, "So, you're ready to lose the order?" I replied calmly, "No, Mr. Ashtagi. I want your order but at my price."

As he resisted, I highlighted that the previous batch of trainees had given overwhelmingly positive feedback about our training quality and that they had limited alternatives. After two hours of negotiation, during which time he expected me to lower my price, I stood firm. By the end of the day, we secured the order—at our standard price.

Lesson Learned: You get what you want when you negotiate from a position of strength.

Negotiation Case 2: Archgroup International

Archgroup International, a leading architectural firm in Delhi, required a high-end plotter. We had quoted Rs.12 lakhs, but our competitor had quoted Rs.9 lakhs—a 25% difference. My salesperson was eager to match the competitor's price, but I believe in selling value, not discounts.

When I met Mr. Choudary, Head of IT, he was prepared with a comparison chart to challenge our pricing. After exchanging pleasantries, I asked if I could introduce the latest advancements in CAD technology and the concept of 3D printing. Intrigued, he invited his design head to join the presentation. Then I asked, " Would you like to deal with a company that is future-oriented or a company that is a mere box pusher?". He agreed that he would like to deal with us, but the price is high.

During the discussion, I asked, "What car does your MD drive?" He replied, "Mercedes Benz E-Class." I followed up, "Why not a Honda City or Maruti?" His response was simple: "Image matters."

I connected the dots: "Wouldn't you want a Mercedes-Benz equivalent in your design office?" This resonated with him, but he still hesitated due to the price.

I asked, "Have you ever recommended a product or service priced higher than competitors?" He recalled suggesting a CISCO network, which was 50% costlier but ultimately approved.

Seizing the moment, I offered a small incentive—one extra carton of toner as a bonus. The deal was sealed.

Lesson Learned: Identify the decision criteria and align your value proposition.