Persuasive negotiation and discounting: If you are in sales there are plenty of opportunities to learn from the people that you buy from and every transaction that you make. Many times the people you work with ask for a discount or a concession and then there are times that some buyers do not ask for either. So what is your negotiation strategy when the potential client asks for a discount off of your price?
That’s right have you thought up front about what your persuasive negotiation strategy is?
Now most of the time sales people or even those who persuade like an expert have the buyer ask for a discount or a concession on the price.
A standard discount for some is to use a set percentage but that may be a mistake. The reason using a standard discount may be a problem is because it seems too thought out and it also looks like it’s a standard. Because the discount seems standard can trigger some issues in the mind of a buyer and that creates issues for you.
If you telegraph what you do or what your “play” is the buyer knows what you are up to and then because of that they know how to play you or take your ability to negotiate out.
Now if you are in sales the chances are good you are paid on commissions and your job is to persuade effectively so that you make the most out of each transaction and bring the most back to your company.
Persuasive negotiating like and an expert
The problem and challenge of using a set flat percentage like 5% is that for one it may seem like it’s too large of a number to take off of a product and or service. If there is an exact 5% there is a chance for another flat 5% and that is where your problem is.
When you use a number or percentage that is less you have a chance of not having the buyer think that there is another flat rate discount or negotiation round to go through. Now that most volleys or going back and forth for an item usually go through 3 rounds, sometimes more and then sometimes less.
So once again what is your strategy for working around the flat percentage rate along with not giving up too much money for your product, service and or company the company that you work for? Or in another way what type of discounts will you work out in advance so that you know what you are up against.
Now if 5% is too much of a discount and it doesn’t seem like your prices are tight just how much can you discount and still seem like it is enough for the buyer to move forward?
The answer is anything less than 5% but with a fraction added to the number.
So you may choose something like 4.37% because it sounds and is more exact.
Now you also have a few more things going for you when you must work out some details with the buyer. If you have an exact number like 4.37% to work with then if you need to go through a next round of negotiation to get the buyer to move forward you can choose a next percentage like 3.12%. If you have the need to go through a third go round of negotiation then the next number or multiplier that you would be able to use like .89% .
Persuasive power of getting agreements
No matter what type of product or service that you sell or provide if you are going through negotiations its best to secure that you are going to get a decision for doing so. Now this may sound like it’s a basic item that should not need to be covered but it is. You must always secure a decision that you will get a “yes” or “no” so that the buyer doesn’t give you the “I wanna think about it” funny business or use an excuse of having to talk to someone.
In order to make sure that you get the commitment up front you have to explain the terms of you negotiating the price and or concessions. Having a person answer with “I will get back to you” should have been discussed before and should not be an acceptable answer.
Persuasive negotiating and dangers
Now any time that you work out a persuasive negotiation strategy in advance there are a few dangers:
- · The persuasive negotiation doesn’t feel real so it doesn’t work
- · The persuasive negotiation is too complicated so it doesn’t work
When you work with others in a business setting if you seem too polished you will build automatic resistance against you and your message. The setting mist be comfortable in order to make this process work.
Now when the sales process or negotiations are too complicated it’s difficult to be flexible and make the necessary considerations that you could do if things were a bit easier.
In order for your persuasive negotiations to be effective you will have to work the numbers out a few times. Beside having a routine number for discounts you may want to have items that you can throw in as part of what you do instead of discounting possibly upgrades but once again get your commitments up front while you still have some power.
As always I would like to thank you in advance for your comments and or questions about persuasive negotiating.
Now go implement!
Scott Sylvan Bell
Persuasion expert Scott Sylvan Bell explains how to use persuasive negotiations: Video credit