As an individual engaged in trading your product in both domestic and export markets for several years, mastering negotiation skills is essential.
Remember that negotiation prowess, like many other skills, is an acquired process.
The more practice you put into negotiating, the more you will grow, perhaps even surpassing your initial expectations.
However, don't forget that the best practice is placing yourself in real negotiation scenarios.
So, without hesitation, face your customers and initiate your negotiations.
Adhering to several professional tips in negotiation can make your mindset more open to the negotiations you are about to undertake, which I'll delve into below.
Don't forget that even the most expensive products have their niche of special customers.
For instance, if a customer tells you that your price is high, don't hastily react.
Instead, remember that you know the prices of your product in both the domestic and international markets, and considering the specific quality of your product, your price is almost on par with the market and competitors.
Therefore, guide the negotiation toward your goal with a few smart and straightforward questions.
For example, if a buyer claims that the price is high, recognize that this is often an excuse not to purchase.
So, ask: Why is it expensive?
Has the quality diminished, or is someone else selling cheaper?
Assume they focus on the quality and inquire what it lacks compared to similar products.
You'll see that eventually, the customer's excuse becomes apparent.
The next possible question is how expensive the product is from the customer's perspective:
10,000 Tomans?
100,000 Tomans?
One million Tomans?
Once the customer identifies the margin of difference, provide a logical explanation regarding how you calculate the price and your costs for selling this product.
This way, if the buyer genuinely has no intention of making excuses, they will listen to your arguments.
Of course, remember that added costs to the price from your side should be reasonable.
Examples include transport costs, purchase or production costs, warehouse rental costs, profit margin, etc.
Keep in mind that it's not necessary to transparently disclose all costs to the buyer.
However, since negotiation involves persuading the customer, logically answering their questions can be quite enlightening.
Author: Mehrdad Asghari, Commercial Liaison Manager at Arad Branding in India.
We would be delighted if you could share your business negotiation experiences with us.
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