You may not believe it, but people are interested in negotiating on issues other than just price. It’s true-money is just one aspect of negotiations!
Too many people are under the impression that all that counts during a negotiation is price. This is false information given by people who haven’t truly played the negotiating game.
Think of it this way – If the statement held true that “money is the most important element of the buying decision”, we wouldn’t have a market for stores such as Bloomingdale’s, Neiman Marcus, Lord & Taylor, Nordstrom or Gucci. We never would sell a Rolls Royce, Ferrari, or Lotus. Nobody would be paying premium prices for any goods and services. But they do!
In this brief issue of “Ask the Expert”, I’m going to give you 5 things you can offer at the negotiating table, using no-money out of your pocket, and still get what you want.
Let’s get to it:
1. Assembly – A great deal of companies sell products that require assembly. Examples are model cars, playground equipment, and gazebos. Do your competitors offer to come and put it together or set it up for free? If you do – tell your prospect. This is a great negotiating gambit.
2. Credit – America is the credit capital of the world! That’s why our personal credit is one of the most valuable assets that we possess living in America. So in turn, people and businesses want to use it more than ever. Therefore, to be competitive, you not only need to offer it – you need to have a better credit policy to offer the “other side”.
Consider the following questions relating to credit:
Can the “other side” make longer payments?
Do you accept all major credit cards?
Do you take both personal and business checks?
Can they defer their first payment for a couple of months?
Do you offer in-house credit?
Can they pay with a smaller down payment than your competitors offer?
All of the previously given examples will make you stand out from the competition.
3. Delivery – Quite a few product distributors and manufacturers offer delivery.
Consider the following questions relating to delivery:
What are your competitors offering?
How will you stand out when negotiating with your prospect?
Will you offer free delivery?
Next-day or second day delivery?
How about same day delivery?
Whatever the competition offers, you must go the extra mile for your customers and remind them you that did!
4. Expertise – Most people want to purchase from a salesperson that possess uncommon expertise. If you’re trying to sell someone a Rolls Royce automobile at a premium price, you’d better know the car inside and out. You must know the all of the features, including options, fabrics, paint, history, and everything else that differentiates it from competitors like Maserati, Ferrari, or Lamborghini. Negotiate on the merits of these unique features-then sell them on the benefits!
5. Guarantee – Everyone these days, not only wants, but also expects a rock-solid, ironclad guarantee that you’ll refund money on products and services if they’re not satisfied. How can you differentiate yourself from the crowd?
Consider the following questions relating to guarantees:
Can you offer an unconditional guarantee?
If someone isn’t satisfied with the quality of your product or service, can you offer a no-questions-asked refund guarantee?
Do you offer lifetime guarantees?
The point is that when you’re negotiating similar products, you need to have a better than expected guarantee. This is a great negotiating gambit.
6. Warranty – To survive in business and have an advantage during negotiations, you must carry warranties on all of your products. And if they break down, you not only have to replace the faulty product, you must do it quickly.
Consider the following questions relating to warranties:
Will you pick up the faulty product and deliver a new one the same day?
Do you fix the product at the customer’s home or business?
Will you fix it the same day?
Is the product fixed at your office or at least locally?
Do you have lifetime warranties?
These are very important considerations when you try to base your negotiation on a better than average warranty.
By implementing the practices listed above, you’ll win more negotiations and increase your sales. You’ll also obtain and keep more customers. By offering these options, you’ll stand out amongst all your competitors. Therefore, 80% of your negotiating task is already done. The key is that you have to tell your customer how you’re different from your competitors and never offer them more money! Remind them over and over. Educate them over and over. And most important, if you say that you’ll do something – DO IT – OR YOUR COMPETITORS WILL!
To learn all about negotiating from A-Z, you can get a copy of my best selling book called “Negotiate Your Way to Riches”.
Thanks for joining me today and good luck in every negotiation!