Price Negotiation: 4 Answers to “That’s Too Expensive”
Price negotiation is one of those topics that have professionals defending extremely different points of view with all their might.
So say you shouldn’t do price negotiation at all. They defend you should never undervalue your services and that having more customers that pay less is not as sustainable in the long run (which I partially agree with).
Others defend price negotiation is a part of every business deal and that you should be open to most opportunities.
Whatever side you’re on, you probably have heard the dreaded “that’s too expensive”. It’s never a good feeling.
Hearing from a prospect that your prices are too expensive can make you question your skills, your understanding of the market and sometimes your choice of career as a whole.
However, you must keep in mind that saying your price is “too expensive” is, by itself, price negotiation. Your client might not be saying they will never pay what you’re asking, they might just be trying to see of they can get a better deal from you.
Above all else, pricing is a matter of perspective and, as so, it can be optimized.
How to Improve Business Sales: Drop The Zeroes
Looking for a quick tip on how to improve business sales?
Here’s an easy one: drop the zeroes.
No, I’m not talking about reducing your price. Dropping prices is rarely the answer.
What I mean by dropping the zeroes is that you should not round numbers.
Your success rate increases considerably when your business proposal contains a natural-looking price. Though it might seem too simple to work, there are actually two good reason why it does.
How to Write a Business Proposal That Sells: Example + 8 Tips + Checklist
To understand how important it is to write a good business proposal, imagine for a second you’re looking to buy a new cellphone.
You go to your favorite online store only to find out they removed all pictures from their products. The product’s description and customer’s reviews are also gone. All there’s left are the names of each product, their price and a big red “BUY NOW” button.
How likely would you be to make the purchase under those circunstances? Without knowing the products color, size, specifications or if other customers were happy with it?
Probably not very likely. We all want to be able to make informed decisions.
And so does your client.