July 5th, 2010 6
Stop Negotiating
How many times have you prepared a proposal or quote with terms written for negotiation? If you artificially increase your pricing just so you can lower it to make the customer “feel good”, you’re wasting time and tarnishing your brand. Stop it. Now!
At FireHost, we do not negotiate pricing with prospective clients, and here are a few reasons that I strongly believe you should not either.
Negotiation Kills Precious Time
During a sale, I want every minute, every word, and every thought to foster value for the buyer and seller. When the conversation turns to price, attention is redirected to a detail that doesn’t really matter. Now, I’m not suggesting money grows on trees or that you should spend recklessly, however if all eyes are on price, it’s easy to lose sight of the business need. When the conversation is derailed, services are misconfigured, requirements are shortchanged, and that’s just the beginning of the downward spiral to disaster.
Negotiation Degrades Your Unique Qualities
If you’re good at what you do, defend it. Don’t degrade it. When a prospective client’s decision is based largely on price, give the client one more minute of your time (but not a second more). In that minute, adopt a very deliberate dialogue. Try something like, “Our pricing is $____, and here is what’s included… ______. Any questions?”At the end, you’ll know if the relationship can move forward, or if you can move on to more lucrative endeavors.
It’s easy to forget that money IS time, and that’s exactly why you won’t catch anyone who works for me saying, “What are you looking to spend?”, or “If I lowered our pricing to ___ would you buy today?”, or the classic “Let me run that up to my boss for approval.” It’s just a bunch of run-around, time-wasting crap. If a prospective client doesn’t “get it” when you elaborate on your unique features and benefits, reallocate your time to one who does.
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