[China Glass Network] Price is the core part of business negotiations. Whether the negotiating party (with two or more parties) can reach a mutually acceptable price will determine the success of the negotiation. The success of the negotiations means that the terms of the negotiating parties are within their acceptable limits, and that they have achieved their goals under the established conditions, which means a win-win situation. However, the process of achieving win-win negotiations is complicated and arduous. This is because the negotiators want to get more benefits from the other side, and they always think that the conditions currently open are not favorable. Of course, the negotiations will not be such an endless debate, otherwise anything will be difficult to talk about. At the appropriate time, the negotiating parties will still shake hands and talk. This appropriate timing is the psychological balance of all parties. Therefore, win-win negotiations are to achieve the psychological balance of all parties. Cotton Fabric,Yarn Dyed Fabric,Shirting Fabric Other Fabric Co., Ltd. , http://www.nswoolfabric.com
To achieve win-win negotiations, we must know how to be willing. The first thing we have to do is to analyze the situation and make a wise choice. There must be competition in negotiations. We take the seller as an example. In the process of winning customers, there will inevitably be many competitors. Among the competitors including ourselves, we need to know ourselves and our opponents' strengths and weaknesses. It is better to make a SWOT analysis. If you are inferior to your opponent in determining the key items selected by the customer, and there is no advantage to be able to make up, then the chances of success in participating in this competition are very small, and you should make a decisive decision to give up rather than blindly investing. Of course, there are obstacles to making this choice, but it is worth more than the investment without results.
After analysis and selection, the following is a substantive negotiation phase with the customer. At this stage, we must first analyze the "customer value proposition" and "the resources and capabilities of oneself." Explain here the meaning of the two words, "customer value proposition" refers to what makes sense to the customer, that is, an in-depth description of the customer's real needs; "its own resources and capabilities" refers to the enterprise itself The resources and capabilities needed to achieve a “customer value propositionâ€. These two aspects determine our position in the negotiation process with our clients and the final results.
For the customer value proposition, it is reflected in the actual operation of several key indicators when the customer selects the product or service. For example, when customers purchase large equipment, they mainly pay attention to quality, after-sales service, price, brand, etc., then customers will also examine these aspects when selecting supply. The “own resource and capability†of the enterprise should correspond to the “customer value proposition†in the specific business, and it should be elaborated and emphasized around the “customer value proposition†in the process of communication with the customer, so that the customer feels that you are satisfied. There are unique capabilities and advantages in terms of demand.
After analyzing the "customer value proposition" and "its own resources and capabilities", we know what cards we can play and how to play, we must immediately determine the negotiation strategy. If we have a unique competitive advantage in satisfying the "customer value proposition" and have been recognized by the customer to a certain extent, the conditions we set out should be moderately high, which not only leaves a certain room for manoeuvre but also increases The profit margin. If it can only be satisfied, and there is no special feature, you should make appropriate conditions for customers to feel your price and affordability.
After meeting customer needs, the focus of the negotiations is on the price side, and some other conditions can be converted into prices to some extent. For the customer, of course, the lower the price, the better, based on the demand, the customer will try their best to pick your products and services to suppress the price. In this case, if you are not a supplier, you only have to adjust the price to meet the actual or psychological needs of the customer. Of course, there should be no unconditional concessions in the negotiations, you should comprehensively measure what you can exchange in the price concessions. For example, you can ask for cash settlement, long-term supply relationships, or loose lead times.
In the price concession process, to grasp the magnitude, frequency and timing of concessions, generally follow the following rules:
1. Understand the customer's budget.
2. Don't make concessions, unless the customer asks and does not make concessions to negotiate and then make concessions.
3. Do not make unnecessary concessions.
4. The frequency cannot be high, and the amplitude is getting smaller and smaller, and the number is getting more and more accurate.
We are often in a passive position in the face of customer procurement. This is the norm. However, for customers, it is subject to purchasing pressure. In a certain period of time and amount, they must purchase what they need. Therefore, in the negotiation, we must make good use of this intangible pressure of customers and combine their own resource capabilities to increase the possibility of transactions.
Only a win-win negotiation can succeed.
February 17, 2019