- Whoever negotiates wants to buy. A price negotiation is a buying signal, not a threat.
- Decide before the conversation where your limit is and what you ask in exchange.
- A discount is never free, only in exchange for something.
- A pause often works better in a negotiation than any argument.
- A deal that only happens with a discount is often one you did not want.
Why is a price negotiation a good sign?
Whoever does not want to buy does not negotiate. They decline or stop answering. If the client wants to talk about price, they are already a step further inside: they want you, but on better terms.
That changes your stance in the conversation. You no longer have to convince, but to shape a deal that works for both sides. If the price is only a pretext for some other hesitation, see «Too expensive»: what the price objection really means.
How do you prepare for a price negotiation?
The negotiation is decided before the conversation. Settle three points for yourself:
- Your limit. Below which price do you decline? Set it before you sit across from the client, not during.
- Your currency. What can you offer that costs you little and is worth something to the client? And what do you ask in return?
- Your alternative. What will you do if this deal does not happen? The clearer the answer, the calmer you negotiate.
Whoever negotiates without a limit only finds it once they have already gone below it.
When may you give a discount?
Only in exchange for something. A discount without a reason tells the client that the first price was set too high. A discount in exchange shows that your price is right and only the terms change. Possible exchanges:
- less scope or a smaller first stage
- a longer term or a larger volume
- payment in advance
- a decision by a fixed date
- a referral after successful completion
«I can do that if we agree on twelve months instead of six. Does that work for you?»
How do you negotiate in the conversation?
State your price clearly and without additions. Whoever follows the price with «but of course we are flexible» has already opened the negotiation.
If the client asks for a reduction, do not answer straight away. Ask first:
«What are you basing that on?»
Then hold the pause. Silence feels longer in a conversation than it is. Often the client qualifies their demand themselves, or names the real reason.
Never give everything in one step. And never give way twice without the client moving.
What if procurement joins the negotiation?
In larger companies, procurement often negotiates at the end. For them a reduction is the goal, regardless of content. That is nothing personal, it is their job.
Clarify early with your contact whether procurement is involved and how it decides. And stick to the principle: a lower price needs something in exchange, with procurement too.
When do you break off a price negotiation?
When the price falls below your limit, or when the client demands concessions but makes none themselves. A job with too small a margin ties up your time, with a client who will negotiate again next time.
A friendly no is not an end here either: «At this price I cannot do it the way your project deserves. If the scope changes, do get in touch.» Sometimes that is exactly when the client comes back.
A deal has stalled? Bring it along.
20 minutes, specific and free. We look at what will trigger the next step.