Negotiating with customers is never easy.  To negotiate effectively, it is paramount to have the full picture of the value you deliver and the cost you incur serving your customers. Customers want it all, especially if they they can get away with not having to pay for it.  It is your responsibility to get customers to pay for the value you deliver.  To do it, you need to have flexible offers that allow you to adjust value up or down based on your customer needs and willingness to pay.  You must be able to offer your customers value trade-offs when they request a lower price or when you are seeking to drive a price increase.  

Objectives

Outcomes

ROI

Watch Outs
  • Be ready to negotiate
  • Understand the value you deliver and leverage it during the negotiation
  • Have the confidence to make value trade-offs
  • Understand and manage aggressive negotiation tactics used by procurement 
  • Improve negotiation outcomes
  • Achieve greater alignment between price and value
  • Develop offerings that enable customers to make price/value trade-offs
  • Develop a communication plan that improves your chances of success
  • The impact of being a strong negotiator is very significant. Organizations have been able to increase prices, and revenue by close to 2% simply by improving the way they negotiate
  • There has to be full alignment starting with senior management on to the sales and pricing team on the strategy for the negotiation
  • Set a walk-away price point and stick with it
  • Keep the line of communications with your customers open
  • Make sure you are delivering the value your customers expect

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