Sales negotiation skills - price concessions

Price is always the focus of concessions. There are many ways to make concessions. Different ways of giving in will produce different results. If you represent a medical device sales company to negotiate business with a large hospital, one of the equipment is priced at 800 yuan, you can reduce the price to 720 yuan, so the space you negotiate is 80 yuan. How to give up this 80 yuan is worth exploring. Here are a few common ways to give in.

1, 80 yuan 0 yuan 0 yuan 0 yuan

Primary negotiators often use this method. Due to lack of practical experience, they are more worried about the breakdown of negotiations due to price, and all the space is allowed to be released at an early stage. If you think about empathy, this method of concession is obviously extremely wrong. First of all, the other party will think that you have a high price and easily give up such a large margin. There must be a lot of room for profit, and you will continue to press hard on the price. At this time, you have no way to retreat, even if the transaction is reached. The other party will also doubt your sincerity and thus affect the next cooperation. Secondly, this method violates the principle of concession. Each of your concessions is exchanged for the corresponding return of the other party. When your price falls to the end, you will take the initiative to present your hands and you will not be able to obtain any return from the other party.

Even experienced negotiators sometimes make this mistake. The buyer will use a variety of methods to test your reserve price, usually put pressure on the price of the competitors, they often say to you: "We appreciate your company's products, I hope to reach a deal with you, but other companies The quotation is really lower than yours. If you keep the current price, we only choose other companies to cooperate." Maybe you are no stranger to this sentence, what will you do next? Many people are forced to choose to cut prices under pressure, but will price cuts lead to transactions? Do you really have a competing offer? Does the price represent the entire product? In this case, please find the answer to the above question and then make your decision.

2, 5 yuan 15 yuan 25 yuan 35 yuan

Everyone is not a natural adventurer. When encountering new things, they will always be cautious and will not easily conclude. Sometimes a person's personality translates into a negotiating style.

Many negotiators are accustomed to giving up a small part and making the next move after observing the reaction of the other party. For example, in the early stage, you first give up 5 yuan, and tell the other party that this is the lower limit. Such a small range usually does not agree, asking you to make concessions again, so you give out 15 yuan and 25 yuan in two steps. But still being relentlessly rejected by the other party, in order to avoid the breakdown of the negotiations and get the order, you can only give the latter 35 yuan to the other party. After you have given up all the negotiations, will you get the order as you wish? I think this business is very difficult to deal with. The reason is very simple: after each concession, the other party gets more and more, you inadvertently make each other form a kind of expectation, even if you give up more, the other party It will not be satisfied. This is not only the psychology of negotiation but also the long-term mindset of human beings.

This kind of concession is not the possibility of no transaction. Maybe the other party lacks negotiation experience. After the first two concessions, the transaction is reached, which can save the next 60 yuan concession. There is indeed such a possibility in practice, but I don’t think there can be any luck at the negotiating table. The negotiation itself is a very rigorous thing. We must use the right method to face every transaction and improve it. The success rate of the negotiations.

3, 20 yuan 20 yuan 20 yuan 20 yuan

On the surface, this is a kind of concession, and each concession is not large, and the risk of negotiation breakdown is also low. In fact, in all forms of concession, any two identical concessions are not advisable. Although the other party does not know how much you can make, but understands the rule of 20 yuan each time, the other party will expect the next 20 yuan after the next concession.

The above three typical concessions are wrong because they all give buyers higher expectations. The correct way is to gradually narrow the margin of concession and let the buyer think that the price has reached the bottom limit. It is impossible to make any concessions.

40 yuan 20 yuan 15 yuan 5 yuan

It is more reasonable to rely on the previous concessions. It is necessary to fully arouse the buyer’s desire to negotiate. Do not make easy concessions in the middle of the negotiation. Each concession should be decremented and the buyer should be rewarded in other respects. The later concessions should be abnormal. It is difficult, if necessary, to use the superior leadership strategy, guide the buyer to negotiate along your line of thought, and finally achieve a win-win transaction.

Pillar Candle

Huaming Candle Co., Ltd. , http://www.hbcandle.com

Posted on