How to Negotiate Price: Get the Lowest Prices Possible
Do you want to pay less for products that you really want?
There are a series of price negotiating tactics that you can use to get a better price for nearly any product.
If you are in sales you can also use these to negotiate the price of the products you are buying or selling.
These techniques also work in long-term business arrangements, where you will be working with the same party again, year after year.
These are 5 negotiation skills that you should be prepared to use in any selling situation.
1) How to Negotiate Price Using “The Flinch”
No matter what price the other person offers, flinch as if you just heard something very disappointing. Put a sad look on your face. Roll your eyes upward and back as though you were experiencing great pain.
Say something like, “Wow! That’s an awful lot of money!”
Surprisingly, sometimes just flinching will cause the other person to drop or increase the price immediately. And if the first flinch gets you a lower price when you are buying, or a higher offer if you are selling, be prepared to use the flinch again and again throughout the negotiation.
2) Asking Questions as a Negotiation Skill
Ask, “Is that the best you can do? Can’t you do any better than that?”
When you ask the price and the person tells you the price, you pause, look surprised, or even shocked, and say, “Is that the best you can do?”
And then remain perfectly silent. If there is any flexibility in the price, very often, the other person will drop the price immediately, or raise their offer immediately.
If they lower their price in response to, “Is that the best you can do,” you then say, “Is that the very best you can do?”
Ask, “Couldn’t you do any better than that?”
You can also ask, “What is the best you can do if I make a decision today?”
This adds an element of urgency and triggers the fear of losing the sale in the mind of the vendor.
3) How to Negotiate Price Using Assertion
Whatever price they give you for a particular item, you immediately reply, “I can get this cheaper somewhere else.”
Whenever you tell a person that you can get that item cheaper somewhere else, from one of their competitors, they immediately soften and begin to back pedal on the price. When you use this negotiation tactic to tell people you can get it cheaper somewhere else, they lose their confidence and become much more open to negotiating with you on a better price, rather than lose the sale altogether.
The assertion, “I can get this cheaper elsewhere,” often demolishes price resistance because they think that you will go somewhere else.
Remember to make it easy for a person to give you concessions. Don’t be adversarial or confrontational. Be a nice person. When you ask in a pleasant way, it’s much easier for the person to concede to you than if you are serious or aggressive.
4) Lowballing in Negotiations
When they ask you for $100, you lowball your answer and say, “I’ll give you $50 cash right now.”
Whenever you offer cash immediately, the price resistance of the other party diminishes dramatically. There are reasons why offering an all-cash deal causes people to be more open to doing business with you. The three most obvious ones are reduced inventory costs, no credit card merchant fees, and the feeling of “instant gratification.”
Sometimes, you will offer them $50 for a $100 item, and they will come back with an offer of $60. Very often you will find that even if you lowball at a price that seems ridiculous, they will sell it to you for far less than you ever thought you were ever going to have to pay.
5) Using “The Nibble” Negotiation Tactic
A nibble is an add-on.
You say something like, “Okay, I’ll agree to this price if you will throw in free delivery.”
If they hesitate about adding something else into the deal.
You can say in a pleasant way, “If you won’t include free delivery, then I don’t want the deal at all.”
Make it clear that you are willing to walk away if they are not willing to add something complementary to the deal.
Here is the key to how to negotiate the nibble. Agree on the purchase of the main item. Agree on the price and terms. Make it appear as if it is a done deal. The other person thinks they have sold the item, even a house, a car, or a boat, at a price that they are happy to receive. Then you add on additional requests.
Use these negotiation techniques to secure the best prices for yourself in business sales and in life. Never be afraid to ask for a better price, remember that prices are an arbitrary number for the most a salesperson thinks you’re willing to pay. You can almost always get a better price.
About Brian Tracy — Brian is recognized as the top sales training and personal success authority in the world today. He has authored more than 60 books and has produced more than 500 audio and video learning programs on sales, management, business success and personal development, including worldwide bestseller The Psychology of Achievement. Brian's goal is to help you achieve your personal and business goals faster and easier than you ever imagined. You can follow him on Twitter, Facebook, Pinterest, Linkedin and Youtube.