Best Practices in Negotiation-How Firm Is Your Price?
Best Practices in Negotiation-How Firm Is Your Price?
I was trying to sell some odds and ends the other day, when I was asked:
“How firm is your price?”
That is both a great question and a great question to quash.
If you are asking, you might get the seller to start cutting price, or at least begin loosening his grip on the current cost, without having to make any concession, yourself.
If he set the asking price at 0, possibly he’ll say “I might come down a little.”
Cool. That tells the negotiator to ask, “How much?” The seller might say, “Oh, to .”
Then the buyer drops an anchor. “I was hoping you’d say .”
“Oh, no I couldn’t do that.”
“What can you do?”
” is the bottom, the lowest I can go.”
“I can only afford , tops.”
“Sold.”
By asking “How firm is your price?” you get a seller to do something
that you never want to do in his or her circumstances.
It’s called “Negotiating against yourself.” This is lowering your price before hearing a specific offer from the buyer. Otherwise, you’re simply inviting the bargainer to low-ball you, to offer less and less, and to think “If he’s conceding now, if I keep grinding, I’ll get the price WAY down!”
Here’s how I responded to this question: “My price is firm because it is set at one-third of the retail price for this item, which is a great value.”
In other words, I know what I have, and my price is pegged to something objective in the real world, a replacement cost.
That response on my part generated a specific offer, which was 67% of my original price. I decided not to counter that bid.
“I’ll think about it,” I said, smiling. “You have my email!” she replied.
And we parted
ways.
She’ll be back, obviously an experienced negotiator who has learned to test a seller’s resolve in various ways, in this case by walking away.
Dr. Gary S. Goodman is a top speaker, sales, service, and negotiation consultant, attorney, TV and radio commentator and the best-selling author of 12 books. He conducts seminars and speaks at convention programs around the world. His original program, “Best Practices in Negotiation,” is offered at U.C. Berkeley and UCLA Extension. His new audio program is Nightingale-Conant’s “Crystal Clear Communication: How to Explain Anything Clearly in Speech & Writing.” He can be contacted at gary@customersatisfaction.com.
Dr. Gary S. Goodman is a top speaker, sales, service, and negotiation consultant, attorney, TV and radio commentator and the best-selling author of 12 books. He conducts seminars and speaks at convention programs around the world. His original program, “Best Practices in Negotiation,” is offered at U.C. Berkeley and UCLA Extension. His new audio program is Nightingale-Conant’s “Crystal Clear Communication: How to Explain Anything Clearly in Speech & Writing.” He can be contacted at gary@customersatisfaction.com.
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