Sales Negotiation: Open high but credible
Posted by Adam Thorp
The old phrase "If you don’t ask, you won't get" is certainly true in negotiating, so always aim high. There is ample evidence that people who aim high do better in the agreements they achieve. It's surprising how often people open negotiations with a lower initial position than they set in their planning. So if you plan to open with a high position, stick to the plan when you get into the sale negotiation. You may not get all you ask for but the chances are you will do better than if you open with a more modest proposal.
Remember too that a skilled negotiator should be doing the same to you. Many buyers are only too aware that if they open with a very low offer on price, it can have a profound effect on the seller's perception of the price it will be possible to achieve. As a result they often gain concessions well beyond the level they would have been happy to accept. So expect buyers to come in with very low prices and other demands. Remember this is their opening position, designed to make you feel weak and to encourage you to make concessions.
Buyers use aggressive opening positions as part of their negotiation strategy to establish power. So the next time a buyer tells you that your price is 50% more than your competitors ask yourself why, if this is true, the customer is still talking to you. If the competitor is offering the same solution and service at 50% of your price surely the customer would simply buy from them and stop talking to you?
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