Negotiating a Sale

6. Getting a Higher Price

6.1 Pitch your opening price high. Only make concessions that work to your advantage.

• Show the customer that he or she is getting good value by detailing the component parts of the deal.
• Charge a psychologically attractive price. Some people see £99 as being more than a pound less than £100.
• Put additional products together and charge a package price - but only if this costs you less than dropping the price.

6.2 Build in value by giving the customer non-price concessions.

• Offer better payment terms, out-of-hours delivery or customised specifications.

6.3 Offer a low headline price and charge for extras separately.

• Be reasonable. Do not alienate the customer.
• Decide whether you are going to provide extras free, at cost or at normal margins.

6.4 Don't get drawn into an auction.

• Normalise the price. Link the price to the industry standard and let the customer know that other customers have paid it.