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Negotiation is just about price and discount, Is it True ? Or False?

Many times sales people are desperate to close the order, they need to understand the concept very clearly, before they go for finalization of deal...... I request you to vote for the question, if y find it interesting, Or answer it , to help others !!

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Question added by Digamber Sudame , Director , Worldwide Infosoft Services Pvt Ltd
Date Posted: 2013/06/16
Bernard Menettrier
by Bernard Menettrier , Sales Director , German Imaging Technology

Bargaining is all about price, getting the best discount, and it is not negotiation.
Negotiation is about reaching a win-win agreement between both parties.
Price/discount is just a fraction of this.
What do you win, as the seller, if you just reduce your price? Nothing.
Negotiating is all about entering the discussion with clear expectations from both parties.
Does the buyer want a better price, a shorter delivery schedule, extended guarantee, more flexibility, whatever? What does the seller want in return of offering a better price, a shorter delivery schedule or anything that will stretch his organization? A shorter payment schedule, a testimonial or anything that will add value to his organization.
A successful negotiation is finalized when each party gains high value at low cost for the other party.
Does it cost much to your (sales) organization to deliver earlier, does it bring high value to the buyer? Does it cost much to your (buying) organization to write a testimonial, does it bring high value to the seller? In the end of the day, offering discount (as a seller) might be the most expensive action.
And if you have no alternative to this, the least you may want is value in return.

Barbara Moretti
by Barbara Moretti , Sales director , Dome srl

Interesting question and open to different evaluations depending on the type of product in the negotiation .The value of the sold product is important for the determination of the type of negotiation to take.If our calculations are correct, if the product has a fair price in the market and has no downsides , if our presentation of the company and that gives confidence to the buyer , the discount must be negotiated only proving the correctness of the company and accuracy in immetere prices in the market, real, and not inflated to make discounts. At this point it would be a winning gift , such as discount, a new product of the company , a free participation in a course aimed at the promotion of his own or another but never belittle our product in monetary terms.Large lots and loyalty programs will be evaluated from time to time and will be useful to prepare in advance a corporate agenda that also includes ready-made answers and complete with any discounts required by the purchaser .We have to rely on a fast and efficient service , courtesy and simplicity but with large knowledge bases of the product to avoid the risk of not closing a deal , or close it down .

Shawky   Farrag
by Shawky Farrag , Certified International trainer, workshop facilitator, executive coach & motivational speaker , Training Institutes, Audit and Consultancy Firms, and other organizations

Negotiation is far broader than that , it includes a lot of tactics and standards to follow to succeed.

SHAIKH MOHAMMED BASHEER AHMED SHAIKH
by SHAIKH MOHAMMED BASHEER AHMED SHAIKH , Account Manager , Tarik Al Zahid Holding Company

Negotiation is the sale technique used by the sales man towards his customer while selling his product.

I can not agree with the satement that "negotiation is the price and discounts". While considering the word negotiation, there are pre- negotiation, actual negotiation and contract mangerial negotion are there. The former two rarely touch the statement, but the third one depends upon the contract. The contract may include the quality, quantity, price and discounts etc... If the lesser the quantiy ordered by the customer, the seller is not necessary to provide the sales price discount even it touches the break even point.

Price of the product may be bargained by the buyer and it reaches to compromise thru win to win policy is better solution to push the product into the market rather than giving discount and even touches below the break even point bring the company into losses.

Further to note is price discount is mostly applicable for the prodcut development and the new product basis of markets or segment markets. not in all products and not in all markets.

Hence, i can not agrree wth the statement that "negotiation is the price and discount only".

Arash Lajevardi
by Arash Lajevardi , National Sales And Marketing Manager , Bastan group

Negotiation is depend on Demand and offer , and two important things in this contract is Price and Product , and2 marketing mix is remained placement and promotion , placement is important because the delivery charges is changed , promotion is important that the seller how to promote their products , I think discount one of the sales manager Tools that he or she can use it sometimes , not in each contract .

amer jayyousi
by amer jayyousi , Business Development Consultant , freelance

i believe negotiation is about cost and value.

its never about the price ,price is just one variable in the equasion 

cost  and value must be matched during negotiation.

if i am selling value what would be your accptable cost  as a buyer.

Hussam Eldin Suliman
by Hussam Eldin Suliman , Candidate MSc Strategy , Lancaster University

Negotiation is not just about price or discounts ....
salesperson might face objections for reasons beyond price and value such as product/service objection in which the customer doubt that the proposed product/service will solve his/her problem another type of objection is what called procrastinating objections in which customer avoid to admitt that he/she has no authority to make decision ..
last is the Hidden objection that is the customer doesn't state the real reason for rejecting or refusing the product or service...
each of the mentioned objections has its own strategies to overcome..

Fahd Al Dossary
by Fahd Al Dossary , Distribution Advisor , STC Channels -saudi Arabia

I think it's more than that what about saying it's about your understanding your customer needs and turning them into a opportunities  and using your tools to convince him with what you offer quality service and support are other factors that  a lot of customers look for2 

Alema Misilo
by Alema Misilo , Officer for calibration , MIBO Komunikacije d.o.o. Sarajevo

false :) ......hej, you arabians should know better, noone is negotiating like you do - you have it in your culture :D

 

Ok, now serious answer - false ........ you can negotiate what ever you wish, the only thing is that you must be informed properly on what oponent can, or can not give ......e.g sesrvice, maintenance, special corporate discount for your employees, etc.   As administration Manager I also do purchasing of Office supplies and services to maintain permises - special corporate discount for all our employees is an OBLIGATORY on every negotiations.  Advantage from this is mutual - my supplier get clients, both company and enmployees get lower prices ........... hmmmm - I guess now I should go to that question "What kind of customer you are" and answer HARD ONE! :D:D:D

zafar abbas minhas
by zafar abbas minhas , Freelance Writer , DAILY MASHRAQ

nice discussion by all participants,,,,, every one think that negotiation is WIN WIN situation for each party but i will take true and real view of that matter,,,, IN EACH BUSINESS DEAL ONE PARTY LOOSES THE PROFITS AND SECOND ONE RECIEVE THAT POROFIT. NEGOTIATION is the artistic game of each party to give feeling of ALL GOOD & WIN WIN situation.

Mohammed M Siddiqui
by Mohammed M Siddiqui , Operations Manager , Confidential

Neogatiation is about is what one getting or selling. It means about the product/services and its features in first place and if required any support in future. Price and discount I believe is secondary, we have to make sure whether it fulfil our requirement when buying or we able to communicate what we are selling , so it also means the features or description of the products and servics which then can be negotiated along with its price or discounts.

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