How many times has a client asked you if that was the best price? Or; the client asks will you take$x for it which is less than you quoted.
Here are things to consider before answering that question:
- If you lower your price then you are saying you over priced the product or service in the first quote and lose credibility.
- Is the client saying they can not afford your quote?
- Is the client asking you to lower the price because you did not do a good job of explaining how the product or service will benefit the client
- Will the client pay the quoted price if you add services or add on products that will not really affect your profit margin or should you move the client to your down sell level of service or a cheaper product. If you do not have an up sell and down sell plan then you need to develop one immediately!
Personally I do not compromise my price because I feel it cheapens the product or service.
- First I always briefly go over the benefits to again; do not go into your whole pitch; keep it simple and read the reaction. Then based on the reaction:
- Up sell them into a higher level at the price of the lower level if it a matter of value
- Down sell them into a lower level if it is matter of price
If you are questioning if this will work; let’s look at some very successful companies that use this philosophy. ( I would like to say that I came up with it but I didn’t)
Apple never negotiates the price of there products! They even set the price and margin the retailers can sell their products at; and they get kit. Verizon Wireless was the last wireless carrier to handle Apple products because of this policy but in the end Apple held their ground and own a majority of the market share.