Q & A Table of Contents
PRICE AND VALUE
From: Dubai, United Arab Emirates
Question: How can I negotiate my quality products & services in a price conscious environment?
Response: Your short question focuses on one of the most complex areas of negotiation. If all of your dealings are with what Americans call 'bean-counters' -- people who measure everything in terms of price -- overcoming their price-fixation requires creativity, imagination, and a serious investigation of their true interests.
Interests are 'why' people want what they want. So you need to pay careful attention to value -- which is the counterbalance to price. You must certainly have a clear idea of what price is appropriate given your own costs of acquisition, manufacture, preparation, overheads, etc. You need to find out the value of that item or those items to the client.
One thought is to consider each negotiation as designed to yield a 'package' rather than just a 'price'.
You also need to ascertain whether you are dealing with someone only one time or are beginning or continuing a relationship. In the short term, price issues can be pretty determinative; in the long term, focuses on ego issues and personal interests can make a big difference.
Does your client need to meet certain budget limits in order to gain favor with his/her boss? Is your client facing a time deadline? What does your client risk if the product he/she acquires fails to meet quality standards?
When you indicate that you are offering 'quality products and services', one question is the cost-benefit analysis of any given transaction to each party. Can you afford to lose money just to make the first sale to Client A in order to get your foot in the door? Does the quality of what you offer provide a counterbalance to the low prices available from your competition? After all, what good is it to buy a product for very little money if you have to replace it or repair it very quickly.
Don't forget , you can fight fires without burning bridges, Steve.
| 
