Insights | Apr 03, 2019

5 Strategies to Live by for Effective Price Negotiations

By Amy Bingham

 

Perhaps nothing creates more angst for staffing and recruiting professionals than a price negotiation. Here are some helpful strategies I use to coach my clients and reduce anxiety associated with price negotiations:

Remember that negotiation is an ongoing process, not an event

 

Typically the outcome is determined way before the close. If you approach the sales process consultatively, price should be the last thing to come up – after the buyer has already decided he wants to work with you.

Aim high

 

You can always come down, but you can’t go back up. Some staffing professionals roll over on price because they don’t truly believe in the value they will create for the customer. Check your body language, tone of voice and word choices when it’s time for a price quote, and confidently present a rate at the top of your range.

 

Your goal is a win-win

 

A win-lose in a price negotiation usually spells failure in retaining a client over time. If your buyer feels he’s lost (he walks away with a nagging feeling that he’s paying too much), his expectations may exceed what you can deliver (not good). If you lose (you give away the store and end up losing money), you’ll resent having to provide the same level of service to this client that you provide to another at higher margins (also not good). One or both parties typically end up disillusioned and either your client fires you or you’re forced to have the uncomfortable conversation about raising your rate or firing your client.

 

Remember that in a price negotiation, he who speaks first generally loses

 

State your rate and allow silence. It’s possible the prospect is just processing how your price quote fits his budget, not formulating an objection about your rate. If you come back too quickly with “…but for you, we can charge X (a lower rate),” you have just relinquished all the power to the buyer, who is now thinking “what else can I get?”

 

Always expect reciprocity

 

You give, you get. When you’re forced to lower your price, ask the buyer what services he can live without. If you don’t, you’re training him to continue to want more while reducing the value of what you’re conceding. Keep the negotiation balanced and you’ll command the respect you deserve.

 

Commit these strategies to memory, employ them regularly, and you’ll see more success.

 

At Visus Group, we take great pride in helping our clients; please contact us today.

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