We happen to buy things from shops not having a fixed price and then we end up negotiating with the seller. And then we are mostly unhappy and dissatisfied with whatever price we pay for the product.
So here are some tips for buyers as well as seller for negotiation.
- As a buyer, never offer any price. Suppose for an item of Rs 1000 you offer to pay Rs 800, so that would be the final price. The seller might have offered you a lesser price but now he would give you for no less than Rs 800.
- As a seller, never accept the price offered by the buyer immediately. In the above situation, if the buyer offers Rs 800, you would lessen the price slowly- Rs 990, 980, 950, 900 and so on. The buyer may agree at Rs850 in such a case. Don’t get over excited and sell at whatever price the buyer says just because this is your first customer. If you do so, the customer may not buy it and may not return to you.
- Don’t spend time on bargaining. Some time back, I saved Rs10 after one hour of negotiation. It is foolish to save such small amount by wasting an important one hour. If you have ample money, then spend it and save time. If you have ample time, then spend it and save money.
- Active decision makers don’t spend any time on bargaining. Take quick decisions. You may see a loss of hundred thousands while taking decisions but if you see towards the profits if the decision is rights, it can be in millions. Look at your total wealth. If you have to spend 1000th part of it, spend it to take decisions quickly.
- Don’t fall for discounts. Less isn’t the best always. Look for quality and not just the price. We often buy things in sale just because their prices have dropped. Never buy anything you don’t want just because it’s cheap.
- Invite suppliers at your place (says Anubhav Jain, Businessman) and negotiate. This man wanted to hire someone for SEO. He contacted a few people but they were charging Rs 40-50K per month Then he called some people by searching on Google and within 4-5 hrs he learnt a lot about SEO and finalized them at Rs 10K per month.
- Don’t let them judge you. Your face has to be a dead pan, just like it should be in the game of cards. Nobody should be able to make out anything from your body language and your firmness. If someone is able to do so, then you are a loser. Similarly, if you can judge the other person’s expressions correctly then you are a winner.
- To negotiate better, you will have to do legwork and fingerwork both. Legwork means you will have to move around in the world as many new developments are coming up and prices of most of the things are going down. At the same time, you may sit in your office and do some fingerwork to find out information from the internet. But remember one thing: you may not get everything by fingerwork. Many times, you can negotiate better when you talk to the person face to face. You get to know about the quality of products when you move around and you may also see some better options.
- Avoid giving advance for the goods you want to purchase. There are so many people in India who paid advance for buying home but they now have no clue about the progress that construction. Try to get thing as soon as you pay for it. Don’t pay in advance just because it would save some money.
Effective negotiation is that when you get more than you want. You save your time, money, get good quality and a price better than you expected is what is counted as effective negotiation.
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