Negotiating a Sale

2. Know Your Own Position

2.1 Set your objectives. These may include:

• Price - the price you are aiming for, and the lowest you will accept.
• Volume - you may be ready to make concessions in return for a larger order.
• Timing - you may value an order that will bring in quick cash, or that will cover a quiet period.

2.2 Decide which areas are negotiable (see 5).

• Think about what you can offer the customer that means little to you but a lot to him or her.
• Cost out negotiable areas and decide a pricing policy.
• Consider the implications. For example, what would happen if you offered all your customers the same discount?
• Find out in advance what is possible for your suppliers and business partners.
• Know where you will draw the line in the negotiations - and be ready to walk away.

2.3 Decide how important the deal is to you.

• Establish the likelihood of repeat business, large orders or immediate payment.
• Estimate what the implications of the deal might be, for example, for your cashflow.

2.4 Work with any special circumstances.

• If you are selling abroad, business assumptions, cultural attitudes to negotiating and laws may all be different.