Successful business owners have learnt the art of negotiation with clients and suppliers from their experience. Some are born with it while others have learned it from the experts. You need them to convert the leads and make them pay a reasonable price for the product or services.
A new product or brand in the market struggle to secure the first few clients. Your negotiation skills will be tested during the sales pitch to find the ideal solution for the business and client. You cannot sound too intimidating or mild with the approach that may cause potential customers to back off.
Here, we have mentioned some negotiation tips for businesses to convince their clients and increase the customer base.
- Understand the Client Requirements
You need to understand the requirements of clients to build a product or provide a service. They will close the deal only if you give a better solution to a problem. And the sales pitch, product details, and offer should revolve around those requirements.
Businesses spend considerable time and resources, analysing their potential customer base. You can use social media and other online platforms to understand customer requirements and behaviour better. It is easier and cheaper than ever to get information before investing in a marketing campaign.
- Negotiate with the Right Person
You should not waste your time negotiating with someone that has no power to make a decision. The clients often send a lower-level negotiator to deal with the service providers. The agreement there is meaningless as they are not the decision-maker in the company.
You will be sent to the final decision maker for another round of negotiation to break the agreed price. Therefore, do not sit at the negotiation table with a person with no authority. It is fairly easy to check the job title of the person through their LinkedIn profile or business card.
- Competitor Analysis
You must put a better offer in quality, customer support, deadline, or price to beat the competitors. It requires a detailed study of the services offered by competitors to their clients. You need to convince the client of why your organisation is the better alternative.
However, some clients may use the competitor’s card to strong-arm you. These can be real threats and many times turns out to be a bluff. You will only have the perfect response in this situation if you know the competitors.
- Set a Final Amount
There will come the point where the deal will make good enough profit for your business, and the client will not find it expensive. You need to finalise this point before leaving for the meeting. There, the negotiations will start with a high price and slowly come to the already determined number.
Ensure the project starts with some advance payment from the clients to support the cost until the deadline. Thus, you should also determine the money and resources required to complete the project. You can easily cover the help of advance payment and online loans in Ireland from direct lenders.
- Price is Not the Only Important Factor
Small business tends to forget the importance of referrals and positive feedbacks in the industry. It is okay to agree on a lower price if the project has the potential to bring more clients. You need to build a good reputation in the industry if you want to compete with the heavyweights.
Similarly, there are more important aspects of the deal other than money for the clients. They may prefer a shorter deadline or extended warranty over saving a few hundred pounds. You can add them to the offer to get the price you want.
- Listen to the Clients
To understand the requirement of customers, their priorities, and the weakness, you need to listen to their arguments. Negotiation will not go anywhere if both parties are not listening to each other. With the listening skills, you will soon understand the areas to target during the negotiation.
Let them speak their mind after the sales pitch is completed. You can use their arguments in your favour with the right negotiation skills. Also, ask them for feedback after the negotiation, as there is always some room for improvement.
- Do not Burn the Bridges
Negotiation can take some ugly turns because of some unacceptable price or argument from the client. It is okay to remain firm but make sure the tone and manner are professional. You are there to get flexible with the offer. It makes no sense to show stubbornness.
To sum up, you should plan the negotiation in the head before the meeting takes place. Prepare yourself for the possible arguments and logic that clients may use to reduce the price. Also, it is okay to settle for less to start a relationship that brings more value than small profits in the first project.