Section 5 Skills of of international business price negotiations

5.1 Deserve a reasonable compensation.

5.2 Don’t sell yourself short!

5.3 Don’t apologize!

5.4 Always be willing to walk away!

5.5 How to justify your price.

5.6 When to negotiate your price.

5.7 Make the buyer work for concessions.

5.8 Qualify your prospective buyers.

5.9 How to deal with three typical buyer tactics.

     The Flinch: The buyer says, “Your price is what!” and they start choking. Your response: Silence. They just wanted to see if they could get a reaction out of you. Don’t react. It’s a test. Be persistent. Repeat your price and justify it as in Tip Number Five.

     The Squeeze: The buyer tells you, “You have to do better!” or “I can get it for less.” Your response: Sell your unique qualifications. Take the focus off of the price. Get them to agree that yours is the one they want, and that the price is only a technicality. If they really want yours, they will find a way to pay for it. Remember my story of the competitor who offered to speak for nothing. Just because the buyer has a potential vendor with a lower price doesn't mean that they want that vendor. Tie a string. Offer to reduce your price only in return for additional volume, or a commitment to purchase other products at full price.

     The Sob Story: They cry, “All I have in my budget is…” or “All we can afford is…” Your response: Don't budge. Call their bluff. They may be testing to see how firm your price is. Ask, “Are there any other budgets you can draw from?” Their budget for your product or service may not be the only one available to them.

5.10 Leave the customer feeling satisfied.