Price negotiation skills - counter-offer

â—Ž Bargaining must be flexible In price negotiations, bargaining should be flexible. For procurement personnel, do not avoid bargaining, price repayment; do not start out the lowest price. The former people feel that they are "robberies in broad daylight," while the latter are passive because they lose their flexibility, and people feel that they are less astute and that there is no room for price negotiations.

â—Ž Zero for the whole procurement staff can focus on the price when counter-offering, zeroing out, so that the supplier can be psychologically relatively expensive, to receive a better deal than a small number of quotes .

In the quotation, it may be worthwhile to change the price to another argument, turn it into a whole, turn it into a small one, and psychologically increase the sense of price of commodity prices, causing great pressure on suppliers.

The main content of this quotation method is to convert the price into a large unit and increase the unit of measurement. For example, change “kg” to “ton”, “two” to “kilogram”, and “month” to “year”; "Day" is replaced by "Month"; "Hour" is changed to "Day"; "Second" is changed to "Hour".

◎ Passing through the so-called “passing the battlefield”, that is, procurement personnel should make good use of the bargaining power of their superiors. Usually, suppliers do not automatically reduce prices. Procurement personnel must strive for arguments. However, the willingness and magnitude of price reductions of suppliers will depend on the object of the bargaining price. Therefore, if the procurement staff is not satisfied with the outcome of the bargaining, the supervisor of the higher level should be required to negotiate with the supplier. When the buyer raises the level of the bargaining agent, the seller has a sense of respect and may agree to increase the rate of price reduction.

If the purchase amount is huge, the procurement staff may even request higher level supervisors (such as purchasing managers or even deputy general managers or general managers) to invite the seller's business executives (such as business managers, etc.) to interview, or directly from the buyer's senior executives and the other party. Senior executives talk directly and this usually works well. This is because senior executives not only have superior bargaining skills and negotiating skills, but also have high social relations and status, and even have mutual investment or business cooperation with the seller’s managers. Therefore, as long as they say hello, they can get unexpected bargaining prices. effect.

â—Ž Compression and price reduction The so-called oppression and price reduction is a situation in which the buyer is dominant and requires the supplier to reduce prices in a coercive manner and does not consult suppliers. This is usually the killer that is used to improve its profitability if the seller is in a poor market or the competition is fierce, resulting in losses and margins. Due to the sluggish market, suppliers also have a backlog of inventory and are eager to sell their products for working capital.

Therefore, this time forms the buyer's market. Purchasing personnel usually follow the company's emergency measures and notify the supplier to reduce the price from a certain date; if the original supplier lacks the willingness, it will replace the supply source. Of course, such drastic price cuts will undermine the harmonious relationship between supply and demand. When the market turns around, the original suppliers who have tried their best to solve the problem are not to “price one's teeth” to raise the selling price, or to seek another development. The supply and demand relationship can hardly be maintained for a long time.

â—Ž Knocking on the mountain and shaking the tiger in the price negotiation, cleverly hinting at the existence of a crisis in the other party, which can force the other party to lower prices.

By implying the other side's unfavorable factors, the other party is passive in the price issue, which is beneficial to the price that oneself proposes. This is where the skill of this counter-offer approach lies. But we must “point to the bottom”, and we must give people the feeling of “sending charcoal in the snow” to make suppliers feel that they are not gloating and robbery, but rather sincerely want to cooperate and want to help—of course, this is beneficial to both parties. Help, then bargaining is also justified.