In this video Mr Anurag Aggarwal tells about how to haggle, how to negotiate with customers and vendors.
We have to negotiate at various instances, with various people. For example, you have to negotiate with your boss, your subordinates in office and with family members at home. If a traffic policeman fines you, you have to haggle with him and there can be many more incidents like this.
Here we will learn how to negotiate with the vendors to reduce the total cost and increase the profit. This video is divided into three sections. It shows the things you should remember before negotiation, during negotiation and after negotiation.
So let us start with the things you should remember before negotiation (from 1:41 min).
- Product quality– You must have complete knowledge of the product you wish to buy. You should know about billing and manufacturing. This would help you in negotiating better and reduce the cost.
- How to search– You can use google, just dial, yellow pages, Indiamart and many more. To recruit people you may use Linkedin, Times Job etc. Even better way to search your vendor/customer is through someone who is in the same trade as you.
- Person of the same trade– Now why would the person of the same trade inform you? He may inform you if he thinks that he cannot afford a particular supplier or if others are not his competitors. This person can give you the best information.
- Call your vendor in the last– If there are vendors who give you credit, delivery and trust you, call them in the last. Since they know that there is trust factor, they may charge you a little higher. So it is better to survey about the rate and quality in the market with other vendors.
- Go to the manufacturer, behave like a wholesaler– If you are a retailer and you want very less quantity at less price, reach to the manufacturer and behave like a wholesaler. You must know how to negotiate.
Do’s and don’ts during negotiation (from 6:43 min):
- Don’t make the first offer- Let the vendor offer the rates. You should not initiate making the offer.
- Expecting an expensive price? Offer first- If while searching you find such a price and quality that you are sure no vendor can give, then in this case you must offer the price first.
- Be a good observer-You must observe the body language and expressions of the other person. If while negotiating, he fumbles, then you must understand that there are chances of further negotiation.
- Don’t let him read you-On the contrary to above, you must not let the other person read your facial expressions or body language. The one who is able to read better is the winner in most of the cases.
- Be firm- You words should be clear and your face should be a dead pan so that the other person is unable to make you weak in negotiation.
- Be a good communicator- Your points should be very clear to the other person.
- Don’t speak too much- Speak less and very confidently.
- Never accept the first offer- The vendor may give you more and better offers. He may reduce the price further. Wait for it.
- Don’t bluff- Tell him the exact rate and quality you are getting from other places. Do not bluff. Even if you have to bluff, it has to be of a very less amount.
After the negotiation (from 10:15 min):
After the negotiation is already done then there are only two possibilities: the deal is either profitable or at a loss.
If you finalized a deal at a higher price:
- Don’t regret.
- Don’t cancel the deal.
- Don’t criticize.
- Win win (let him also win)
If you finalized a deal at a lower price:
- He may back out. Give some advance to avoid the back out.
- Don’t show your happiness. If you do so, he may compromise on quality at the time of delivery or he may play some unfair game in your next order.
To join business training or public speaking course by Mr Anurag Aggarwal, call us at 7834-99-9292 or visit www.anuragaggarwal.com .