Stop Giving Away Value! Discover How to Transform Your Freebies into Negotiables

Over the past month of training, I’ve noticed a recurring trend: many clients are giving away valuable services for free that they should consider trading instead. This article will help you rethink your approach and uncover opportunities to enhance your negotiation outcomes.

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Insight: What Are You Giving Away?

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In many B2B negotiations, valuable services are often given away to secure a sale or because they have become standard practice. However, these services may hold significant value for your negotiating counterpart. By reassessing what you routinely give away, you can uncover opportunities to trade instead.

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Ask Yourself: What is Your Team Unknowingly Giving Away?

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Consider the following services you might be giving away:

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- Design services

- Access to application engineering

- Consulting

- Advanced product training

- Pilot programs

- Advanced diagnosis of systems

- Samples

- Priority scheduling

- Product or service customization

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These services may seem minor, but your negotiation counterpart could highly prize them. Recognizing their value can transform your negotiation strategy.

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The Power of Trading vs. Giving

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Instead of giving these services away freely, think about trading them. Just because they aren't your priority doesn't mean they aren't valuable. By offering these services as part of a negotiation, you can secure better terms and add more value to your agreements.

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For instance, consider a scenario where a company offers free consulting services. While this might not seem like a big deal to the company, the receiving party may see immense value in these consultations. Rather than giving them away, the company could trade these services for extended contract terms, higher pricing, or other benefits.

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Segmenting Customers by Value

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If you continue offering certain free services, ensure they are reserved for your best customers. Segmenting your customers by value helps determine who qualifies for these complimentary services. This strategy ensures that your most valuable customers receive the benefits while others recognize the worth of your offer.

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To effectively segment your customers, start by analyzing their purchasing history, loyalty, and the overall revenue or profit they generate. This segmentation will allow you to identify top-tier clients who deserve these added perks.

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Practical Application: A Case Study

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A client of mine in the tech industry offered all customers advanced product training and priority scheduling. This practice led to several issues: limited product trainers were available, and the engineering team could only handle several new projects at a time.

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The company began trading them by reassessing which customers qualified for these premium services. They reserved advanced product training and priority scheduling for their top-tier clients and used these services to negotiate with other customers. This change improved their negotiation outcomes and strengthened relationships with key clients.

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As a result, the company saw an increase in the perceived value of their offerings and a boost in their bottom line. The clients who received these services felt more valued and willing to negotiate favorable terms.

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Key Takeaways

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1. Identify Valuable Services: Recognize the services you give away that hold significant value to your counterparts.
2. Trade, Don’t Give: Use these services as negotiation tools to secure better terms and add value to your agreements.
3. Segment Your Customers: Reserve complimentary services for your most valuable clients to ensure they feel appreciated and maintain the exclusivity of your offerings.
4. Assess and Adjust: Review your approach regularly to ensure you maximize the value of your offers in negotiations.

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By rethinking what you give away and focusing on trading valuable services, you can enhance your negotiation outcomes and strengthen relationships with your most important clients. This approach boosts your perceived value and helps achieve more favorable terms in your negotiations.

Want to learn more? Join us on August 13.14 & 15 in Denver, CO, for our next public class. CLICK HERE