Price Negotiations

Increasing Results Through 
Effective Price Negotiations

Prices Set by Negotiation
Can Be Changed by Negotiation

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Are you an effective negotiator?

You understand price is always more than the amount of money or goods given in exchange for something else.

always   frequently    sometimes       rarely     never

 

You understand the value of various prices as well as all the costs involved for each side.

always   frequently    sometimes       rarely     never

 

You understand that appealing to the intellect or to reason will not necessarily win the negotiation.

always   frequently    sometimes       rarely     never

 

You know understanding the self-image and attitude of the  person you’re negotiating with are as important as understanding  the deal itself .

always   frequently    sometimes       rarely     never

 

Before entering into any negotiation, you have written down what you know and what you don’t know about your position and the other person’s.

always   frequently    sometimes       rarely     never

 

You’ve developed probing questions to discover, quickly and accurately, the unknown price and value differences between the two sides.

always   frequently    sometimes       rarely     never

 

You pay close attention to how the other side answers specific questions, looking for patterns that reveal if they are primarily risk or opportunity oriented.

always   frequently    sometimes       rarely     never

 

You are ready to provide the other side with information to make it easier for them to not only understand the price but to also justify the price to both themselves and those they must convince.

always   frequently    sometimes       rarely     never

 

You know how to un-bundle what you’re selling or buying and how to assign fair prices to the parts, calculating the value of each part and then comparing total value to total price.

always   frequently    sometimes       rarely     never

      

You Scored:

 

 

of a possible 45

40-45:  Congratulations! You are an excellent price negotiator.  You fully understand getting an advantageous price is a function of who knows what, when they know it, and what it means, and you have developed the skills and strategies you need to acquire this information.

Suggestions:  You might want to read _________’s  book on general negotiations, _____. and enroll in a seminar, specifically one focused on best practrices, one that will allow you to interact with other negotiations professionals.

 

35-40: Good! You are a good price negotiator.  You never assume a certain number of dollars to the buyer is equal to the value of those same dollars to the seller.  You also understand other side is not going to believe what you say but will believe what they  infer from what you say.  However,  you’re probably not negotiating in a consistent, systematic way.

Suggestions:  You have learned much by doing but, to improve your success-ratio,  you now need to develop  strategies related specifically to price negotiations.  Read books on general negotiations, such as _________, and enroll in a seminar or workshop focused on price negotiations to keep your skills sharp.

 

34 and below:  OK. You are an average price negotiator, better than many but not as good as you could be.    You know negotiating price is not determined by your ability with words, logic, and charm but you have yet to develop the materials and methodologies you’ll need to be a truly effective negotiator. You may be under-confident or over-confident, depending on your perception of the negotiation.  Your strategies are informal and ad hoc, rather than systematic.

Suggestions:  Spend more time preparing before you meet with the other side.  Write down what you know about your products or services, what you know about your company’s formal terms and conditions of sale, as well as what’s possible; write down what you know about the other side. In negotiations resources, you’ll find materials designed specifically to show you how to prepare for negotiations and what kind of documentation you’ll need throughout the process.

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