How to Respond to Price Negotiation

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Are you always asked to lower your price? Does every prospect start to negotiate with you? Most salespeople would answer with a very definitive yes! The real question is how do you respond to a price negotiation request.

Are You Always Asked To Lower Your Price?
How to Respond to Price Negotiation - Sales Tips from B2B Sales Connections
Are you always asked to lower your price? Of course you are!

The reason is that consumers and buyers are trained to ask for a lower price, no matter what. Think about it. Would you walk into a car dealership and pay the price listed on the windshield? Probably not.


Don't be surprised if you are asked to negotiate to a lower price. Expect it. What you can do, however, is change the way you respond to the price negotiation request. You do not have to lower your price if afghanistan whatsapp number database follow some basic sales techniques.

How to Avoid Price Negotiation? State Your Price as Fact!
Did you know that how you tell your prospect the price of your product or service can invite price negotiation? The first step in learning how to respond to price negotiation requests is to learn how to state your price as fact.

I mentioned earlier we all negotiate when buying a new car. You see the 'Manufacturer's Suggested Retail Price' on the window sticker. Or the 'Some Dealers May Sell for Less' in the ad. Using that kind of language works the same way in sales.

For example, if you add adjectives or descriptive words like 'the suggested price is', 'the quoted price is' or 'the usual price is' you are doing nothing more than telling your prospect that there is more than one price for the same product. Not only will he ask for a better price, he will negotiate hard to receive it because you told him it exists!

Instead, simply state 'the price is' as fact like you would state that the sun rises in the east every morning. This informs the customer that the price will not be changed and that this is what other customers have paid.

Does Your Price Scare You More Than Your Prospect?
You must be comfortable saying your price. If you get nervous right before you tell your prospect the price, or you take a really deep breath, or if you say something like 'and now for the hard part' or 'it's a good thing you are sitting down', you are telling the prospect that you also think the price for your product is too high.

Rehearse saying the price of your product before hand so that you are completely comfortable saying it. The more you rehearse, the more your prospect will accept your price statement as fact, as opposed to something which can be negotiated.

How to Respond to Price Negotiation? Just Say No!
Having said that, many prospects will still ask for a better price, no matter what language we use. I know I often do. The key to remember though, it's okay to say no!

For example, when I am asked to discount my coaching services, I say, 'No, I am sorry I can't. Unless of course you can tell me which part of my knowledge and expertise you want me to forget or leave out when I am coaching you.


Right now you are thinking, 'But my prospects always tell me they can get the same product from my competitor at a lower price!' If this were really true, the prospect would not take the time to negotiate a better price with you. He would have already bought the product from your competitor!

Be it because of your service, delivery, or a specific product feature, the prospect sees you as different, and he wants to buy from you. He is just negotiating because he has been trained to do so.

Everyone wants the cheapest price, but the cheapest price for what they want. They key is the want. Take the time in the sales process so that you and your customer agree that you can solve the customer's problem better than the competition can, technically you are the cheapest price.

Remember, if you truly have the product the prospect wants, you don't have to lower your price. You can just say no!

How to Negotiate
Sometimes though, no matter what we do as sales professionals, we are going to have to respond to the price negotiation request. After all, your prospect can have a real concern about their budget .

Before you start to negotiate though, be sure that the customer’s budget really is the issue preventing the sale from moving forward. Here is a technique to ensure you are handling the prospect’s true objection.

Once you know there really is an issue with the price, don’t automatically give a discount on your proposed solution. Instead, justify your value first. Dig deeper and ask more questions. What makes you different? Why are you better than your competition? Is there something included in your proposal that the competition has left out? Are you comparing apples to apples, or apples to oranges instead? What is the return on the customer’s investment if they implement your solution?