Doing well in business relies greatly on negotiation. You need to know the exact point until which it’s okay to negotiate. If you negotiate less, you’ll end up paying more for products or services that are worth less to you. If you negotiate more, this might lead to sour relations between you and the other business you’re working with.
A good deal is not just about spending as little as possible; it’s also about making sure that both parties are satisfied so that you can have a good working relationship. If you’re wondering how to negotiate a better deal, here are a few tips:
How Much Is it Worth?
When you strike a deal with someone, you’re generally exchanging goods or services for money. If you’re on the buying end of these goods or services, you need to think about how much they are worth to you. First of all, find out the market price for these goods. The market price will generally be a range rather than a fixed price. Before you go in for your negotiation, decide how much you’re willing to pay, based on your budget and the value of those goods and services to you.
Another thing you should do before you start negotiating a deal is to find out the quality of the goods or services you’re going to buy. For this, you need to ask for samples and put them to the test. If the goods are particularly good quality, you may be prepared to pay more than you had originally decided. Finding out exactly how the goods are produced can also help you to figure out if they are good quality. If you’re looking at services instead, find out the qualifications of the individuals providing these services. Do some research to figure out how reputable they are.
Ask for a Proposal or a Presentation.
There are many factors that will determine whether or not you decide to strike a deal with someone who is selling you products or services. However, it may not be possible for you to think of all these factors. A proposal or presentation from the other business will give you a clearer idea of all that they have to offer, now and in the future. Buying what they offer might have unexpected benefits which you will only discover in the course of the presentation.
Offer the Lower Market Range.
When you start negotiations, it doesn’t make any sense to offer a ridiculously low amount. This is only likely to scare off the other business. Instead, make your first offer at the lower end of the market range for those goods or services. Depending on the counteroffer, you can expect to arrive at a happy medium. But always keep in mind exactly how much those goods or services are worth to you so that you don’t exceed that sum.
Contact The Sherwood Group for more great tips on negotiating a better deal.
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This article is published by Will Sherwood | The Sherwood Group |Website Design | Graphic Design | Marketing Communications: The Sherwood Group has over 30 years of experience working with all sorts of companies, small and large. Our clients range from entrepreneurs to Fortune 500 firms, in nearly every business sector, from across the street to around the world (and yes, even Europe, China, and South America). Our goal is to create advertising, graphic design, website design, and marketing communication that still looks fresh and relevant 10-15 years later. Our mission is to stir your imagination and leave your competition shaken and wondering, Now what do we do?” We are located in Myrtle Beach, South Carolina.
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Please comment. We’d like to know if you found this article informative or helpful?
By Craig Kensek 18 Aug 2015
No deal is better than a bad deal. Don’t be afraid to say “no”. Look for “soft consessions” that you can make.
By Will Sherwood 18 Aug 2015
Thank you for your comment, Craig. It is sincerely appreciated.