Is it really all about price?

Although price is a key factor in commercial buying decisions it is always less important than a skilled negotiator will pretend. 

Whilst negotiating seems, on the surface, to be a sterile numbers game it’s actually an emotionally loaded series of transactions between people with different personalities.

Malcolm Gladwell’s research identifies 4 distinct types; assertive, amiable, expressive and analytical, each with their own style. There are cultural differences too; British people, for instance, are generally less confrontational than those from Holland for example. Try and put yourself in their shoes and strive for a win/win relationship considering your needs and theirs.

 Professional buyers are now far better educated than in the pre-internet era and it often seems as though the balance of power sits firmly with them. Shifting the scales a little in our direction requires us to have a “winning mind-set” before we enter into negotiations. This comes from feeling confident about your; company, team, product and above all yourself. Showing this belief in the “promise to deliver” behind your brand can be a very powerful way to differentiate yourself from your competitors.

 Some more thoughts:

? Prepare thoroughly for the negotiation – know your target and top line, use LinkedIn to research the person with whom you are negotiating.

? Take a colleague with a different personality type to the meeting – your strengths will complement each other.

? Practise delivering the price in the same, matter-of fact way as telling the time – “what time is it?” – “it’s ￡36,000.

? Try wherever possible to avoid “weak speak” – don’t put too much wrapping around the response to the price question which only invites bargaining.

? Rather than discount give something to the customer that they value but costs you as little as possible.

? Be happy to disqualify – “ we are not for everyone” which suggests membership of an exclusive club.

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