Did you know that an independent study by YouGov and the Centre for Economics and Business Research (CEBR) found that UK plc would have increased turnover in the private sector by around £17bn if more effective negotiation had been in play?
From our extensive discussions with the LinkedIn Group, Sales and Marketing Executives (CSO/CMO), we’ve gleaned what could be considered the Top 10 considerations for Effective Price Handling and Negotiations:
- Be convinced of the value of your offering.
- Create tangible value calculations based on the NBA (Next Best Alternative).
- Mitigate risk of loss with knowledge. (Know the NBA, Know the Competition, Know the Customer, Know their Buying Criteria).
- Realize that reducing price can devalue your product, your service & YOU.
- Align and Ensure Sales Management, Product Managers & the Pricing Departments are all on the same page (checklist).
- Listen to the Clients’ Big Picture Goals (profit, market share etc.) and link your offering to that.
- Prepare a list of Fixed & Variable (Tradable) Elements.
- Suggest adjustment (reduction) in services as a fair exchange for Price Reduction.
- Ask for SOMETHING in return for Price Reduction.
- Know and stick to your BATNA (Best Alternative to Non Agreement).
Find out more about Professional Negotiating techniques