Apple continues to be the most popular laptop, even with a premium price. Ride a roller coaster and you will pay ten times more for the experience at Disney, than to the local amusement park. Having a Harley-Davidson logo on your motorcycles gas tank can cost ten thousand dollars more, than a competitors product.
None of the above three examples really negotiate their prices. Well, maybe a little on motorcycles. For the most part, they have a value in the mind of the customer that allows for above average pricing.
When your value is in question, or negotiable, then the other party can make use of the insecurities in reside in your head. When you approach negotiations as, “I have value that is in demand by my customers and suppliers”, then the back-and-forth traditional process of negotiations can be put on hold.
Instead, negotiations from a value (knowing that you are a “premium” brand) allows you to negotiate with the other entity and make them a collaborated partner, instead of an advisory.
I am told, “Yeah, but that is not reality . . . that is not how negotiations works.” In that case I know that the issue is the mental starting place.
When two people are on the same side of the table, then a conversation, frank, open and honest, occurs. Negotiations become a dialog, a two way exploration of options.
- What is your brand? What does your customer get as a result of doing business with you? Ask them. Write down their answers. This is your brand.
- Negotiations should take into account total value. If price is the central point of negotiations then an honest list of your total value is needed. What about your quality, delivery, sales, information, communications, extras, and hundreds of other items. The number one quality for a sales person is resourcefulness (i.e. creative). What things do you do that are unique from the competition? Make a list. Here are tools that will help you negotiate.
- Ask them the question . . .”why?” You can’t talk the other guy into submission. They will feel manipulated, angry and un-respectful. If you don’t have the confidence to ask them the question WHY, afraid of what they might say, then it really is all in your head.
Kordell Norton, CSP is America’s Charisma Consultant, and is often called Revenue Mechanic by his customers. He sales, customer service, and marketing is used by organizations across North America. The author of 7 books, he is a member of the National Speakers Association.