Doing a price negotiation with a client for your products or services is not always easy but It is an important skill which every business development executive should have. Client bargaining for services is not unusual, instead it’s perfectly reasonable for clients to think about what they are spending on if they can save some extra bucks.
In areas where the supply of services exceeds demand, clients will have an upper hand and have a choice of choosing any other vendor for the services.
Before when people were not using internet, it use to be much difficult for clients to find provider but now clients can just go to google and search for service vendors.
Even if clients have few vendors for the service and they are likely to stick with your services, then as well you should be careful with handling negotiations. The wrong bargaining skills can lead to emotional overreaction, unexpected outcomes and loss of business judgement.
Avoid damaging the relationship with client during negotiations by:
- Showing respect for clients in their buying terms
- Engaging in constructive bargaining
- Showing you value their business relationship
- Avoiding bitter struggles
Don’t go for a meeting convinced that you are the only option for the client and there is no alternative for your services.
Some clients do want cheap services or most business owners think that it’s irresponsible to pay more than the market price for the services. Some things that they may pay for are:
- Risk reduction
- Insurance against bad outcome