Sticking to your price and being proud of it suggests it was the right price in the first place and that everybody gets the same deal.
In business, clients often ask us for discounts or to change our standard terms. Entering into a negotiation on price is a dangerous game, and can seriously damage your success. Only a small percentage of people actually buy purely on price. The vast majority buy based on value for money.
I want you to think of something that you have your eye on with a high price you’d love to reduce… perhaps a big purchase, maybe a house or car? Your initial feeling when you succeed in your negotiation is typically joy and achievement. Yet as time lapses, you wonder whether you could’ve gotten a bigger discount if you could have pushed a little harder. At the same time, the seller is still unsure of whether they got the best available deal, so both parties are less than satisfied with the negotiation.
A second example would be each time that you shop on the high street. In this scenario, you typically simply choose your items and pay the requested price with no negotiation, yet are more satisfied with the purchase.
The lesson in this is simple. Negotiating on price alone will result in uncertainty surrounding value for both parties. Sticking to your price and even being proud of it suggests it was the right price in the first place, and that everybody gets the same deal. In retail, when something presents great value, the price tags get bigger. The product values are presented on large tags, and in many cases, large-format graphics and window displays. The prouder you are of your price, the better the perceived value for your customer.
There will, however, be occasions when people are simply looking to improve their deal with you in some way. Before ever considering a discount, first think about what you can add. By giving something extra, you’ll often create the same result for your customer while also generating better margins for yourself and, in some cases, even resulting in increased business. A recent successful example that I was involved in was giving away a voucher valued at £100 to secure an order. The voucher was then used against a future order of nearly £1500 just 10 days later! Giving a £100 discount would have had a very different outcome.
