BUSINESS INSIGHTS: SHARPER SALES NEGOTIATION TACTICS FOR BETTER MARGINS :
At its basics, Sales is primarily an act of balancing between demand and asking price; Art of negotiation is raising the value of a potential product above customer’s expected price. Here sales negotiation tactics from both business and customer at critical at determining the relative price point.
A successful sales negotiator knows the time to push for margins and when to be appeased with available margins. Here are some key business insights that help you put base prices while negotiating on either side of the table. With a thorough understanding of these sales negotiation tactics, you can start communicating with your customers the right-way.
Assign a Base Price at Beginning
According to research, negotiations reach an average price-point within first five minutes of starting negotiation.
First and Foremost, every transaction is dependent on an established base price. It’s the process of putting a price on the table, thereby establishing a mental reference price for the product. This could be done by both customer and seller. If you are just starting your business or looking to quickly amass publicity, getting right introductory prices becomes more important.
Instead of depending on pure intuition, an account management system can help you guide your pricing decisions to optimal point.
The relevant base price is usually based on who establishes most pressing base price. For a business, there are arguably many ways to manage a customer according to his/her previous interactions. This data comes useful at time of initial price setting.
If you are looking to negotiate a deal, you should establish a base price. This base price should be according to previous transactions.
In an online scenario, there are various ways for establishing this price. A sales person can put a high price for premium services. Afterwards put-forth a lower price for more admissible service.
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