7 tips for negotiating a price reduction
Knowing how to negotiate is essential for those who want to save part of their capital for new ventures. The feeling of getting a price reduction is quite satisfying, but to get there the negotiator must be prepared.
Almost always, the other party is not as likely to give in to requests for a discount. Understanding how to overcome the barrier of refusal is the secret to becoming a Negotiator with a capital N.
Keep reading and check out some tips that will help you.
Why is knowing how to negotiate a price reduction important?
Before we get to the tips, it’s important to specify why negotiating well is important. Not everyone feels comfortable negotiating with the seller, especially when shyness is involved. However, this “bargaining” can be quite useful both for your personal life and for your company.
By obtaining discounts, you can have capital left over that can be invested in other ventures. A good conversation before finalizing your purchase can be very profitable. Much more than discounts, in some cases this negotiation skill makes prices fairer. Those who do not negotiate may end up paying a very high price for a certain product/service.
Finally, it should be noted that some discounts obtained are cumulative. A person who gets a R$50.00 discount on their monthly cable TV bill, for example, saves R$600.00 per year. That certainly makes a difference, doesn’t it? Have you ever thought about how much you could save by negotiating with other suppliers and service providers?
Check out 7 tips on how to negotiate price reductions
Have you ever thought about how much you can save in your personal life and also in your company with the ability to negotiate? Having understood the importance of this skill, it is interesting to check out the 7 tips we have listed below.
1. Make sympathy your way of acting
Salespeople are certainly more likely to give discounts to customers who have a more friendly approach. This applies to both salespeople in conventional stores and corporate salespeople. A customer who doesn’t even say good morning and comes right in asking for a price reduction will have a hard time getting past the “no” barrier.
It’s the old saying that you already have a no, you have to work to get a yes. To convince someone to help you in any way, it’s crucial to be pleasant. It doesn’t mean wasting the salesperson’s time, but showing that you respect them. Being polite costs nothing and can earn you a discount.
2. Do good price research
Before you start making a purchase and negotiating a price reduction, you need to do your research and gather information. Do extensive research on the price variations of the product/service. Also research the prices of similar items that could work as substitutes.
This research work is important to understand the fair value of a product/service. Based on this research, it becomes easier to understand the pros and cons of the purchase and even how much it is worth paying for it. Take advantage of this moment to evaluate how much it is worth making the purchase.
3. Have valid arguments
Remember when we mentioned that salespeople usually have a barrier to overcome? They are almost never willing to give a significant discount right from the start. To convince them otherwise, you need to have good arguments, that is, make them understand why you should give the discounts.
By following tip 2, you will have a good basis for arguing about the competitiveness of the current price. However, be very careful not to belittle the seller’s work by saying that it is expensive or that another company sells for less. Follow tip 1 as well and remain polite.
4. Make an offer
Once you have researched the average prices, you will have a basis for making an offer. However, keep in mind that this offer must be good for both parties. Remember that you should never undercut the other party. The idea is to find a middle ground that works for you or your company and the seller.
Depending on your offer, the seller may already respond affirmatively so as not to lose the deal. Just don’t think that offering half the price will get you through, because things don’t work that way.
5. If possible, pay in cash
Paying in cash gives the negotiator a better chance of getting the much-desired discount. The seller tends to be more flexible when faced with the possibility of receiving the full amount at once. This is an excellent tip for purchasing high-value items, as buyers rarely pay in cash.
For personal and even company finances, paying in cash is a good idea, as it helps you avoid debt. Paying multiple installments always means you may not be able to pay some of them and end up accumulating interest.
6. Be patient
To be a good negotiator, it is essential to be patient and not give up when the first “no” is said. As mentioned before, salespeople are ready to refuse offers and it is up to the negotiator to work to change this predisposition. Note that it is not about being that annoying and clueless insistent person; it is enough to dialogue with good arguments.
Showing that you are well-informed about the subject will help to make the seller give in a little. By talking it out, the two of you can reach a consensus that is positive for both parties. Keep in mind that you want to buy and he wants to sell.
7. Overcome your shyness
Shyness is the barrier you need to overcome to get good discounts on your purchases. If you feel shy when it comes to negotiating, you need to work on this issue. Practicing is always a good way to overcome this difficulty and you don’t need to go to several stores to do so.