Negotiation Strategies April 8, 2013

How to Tackle a Firm Price Whether You Buy as a Consumer or Professional-Part One

Americans as a whole are hypnotized by firm prices, more so than those who live in other societies. We are inundated by what appears to be firm prices. They blare at us in newspaper advertisements, over television, in four color price lists and in stores themselves. Is it any wonder that we have grown accustomed to paying the asking price without testing it?

Not so in other cultures. There, when they see an $800 price ticket on a piece of furniture, they say, “That’s the most the seller wants. I wonder what the least they will take is?” Americans see the $800 price tag differently. They say, “That’s what the seller wants. Do I want to buy it or not?” The result of this difference in approach is that most Americans, if they want the product or service, pay the price asked.

From now on, whenever you encounter a firm price, say to yourself, “That’s the most the seller or merchant wants. I wonder what the least they will take is?” Test the price-there is usually some flexibility in the seller’s offering or terms. There are good reasons for this.

Day in and day out salespeople lose sales because people cannot or will not meet their demands. Each loss forces sellers to reevaluate a firm position. This interaction with potential customers leads the seller to consider creative alternatives to close a sale rather than lose it. The consumer or professional buyer who tests the firm price can rest assured that they are not the first to do so, not will they be the first to succeed in winning concessions.

To help take on a firm price, we can learn as much from little things as from big ones. The principles of testing the price on products or services are alike whether it be for a case of Scotch, a new condominium, an IBM computer or the interest rate you pay on your mortgage. In Part Two, we shall illustrate these techniques by testing a department store price on a refrigerator.

THE PROGRAM WAS GREAT! MY SEMINAR LEADER AND THE STRUCTURE OF THE COURSE KEPT ME CONSTANTLY STIMULATED. I NOW AM BETTER PREPARED TO GO INTO AN IMPORTANT NEGOTIATION MEETING AND STAY IN CONTROL, WHILE FINISHING THE MEETING SATISFIED.

Deanna D.
CASE MANAGER at THE JACKSON LABORATORY

IF YOU HAVE THE TRAINING BUDGET AND TWO DAYS TO SPARE, YOU'LL STRUGGLE TO FIND A PROGRAM MORE FAR-REACHING, ON-POINT, AND INSTANTLY IMPLEMENTABLE.

Jeff G.
BUSINESS DEVELOPMENT MANAGER at THE M.K. MORSE COMPANY

EXCELLENT COURSE, BRINGS MORE CONFIDENCE IN MY ABILITY TO NEGOTIATE. I THINK THIS COURSE IS A MUST FOR ALL EMPLOYEES WHO DEAL WITH CUSTOMERS.

John S.
CHIEF ENGINEERING MANAGER at EXXONMOBIL

THIS WAS VERY EFFECTIVE WITH A STRONG FOCUS ON BOTH-WIN NEGOTIATING.

Kathleen L.
SENIOR ANALYST at BLUE CROSS/BLUE SHIELD OF MICHIGAN

THE KARRASS CLASS WAS THE SINGLE BEST TRAINING CLASS/SEMINAR I HAVE EVER ATTENDED. EVERY TIME WE DID AN EXERCISE IT TAUGHT YOU WHAT TO DO DIFFERENTLY NEXT TIME. THANKS.

Kim C.
PROCUREMENT at AMERICAN EXPRESS

THIS PROGRAM HAS GREATLY INCREASED MY CONFIDENCE AND ABILITY TO NEGOTIATE FOR MYSELF AS WELL AS MY COMPANY.

LaDonna E.
SENIOR STRATEGIC BUYER at HALLMARK

THE NEGOTIATING CLASS WAS VERY INFORMATIVE. THE INSTRUCTOR PROVIDED AN INSPIRATIONAL MESSAGE THAT CAN BE APPLIED TO EVERYDAY LIFE.

Mary S.
INTERNATIONAL SOURCING at FMC TECHNOLOGIES

WE NEGOTIATE EVERY DAY OF OUR LIVES, BOTH PERSONALLY AND PROFESSIONALLY. THIS COURSE DEFINES THE PROCESS AND PROVIDES TECHNIQUES TO ACHIEVE SUCCESSFUL RESULTS.

Phillip H.
VICE PRESIDENT at GE

PRIOR TO THIS CLASS I FELT AS THOUGH I WAS GETTING EATEN ALIVE BY INTERNAL NEGOTIATIONS WITH SALES REPS. NOW I FEEL PREPARED TO CHALLENGE WHAT THEY ARE SAYING AND BET TO THEIR REAL NEEDS.

Steve Q.
PLANNER at HONEYWELL

MANY PEOPLE FAIL TO ACHIEVE THEIR POTENTIAL BECAUSE THEY DON’T SEE THE OPPORTUNITIES TO NEGOTIATE A WIN/WIN AGREEMENT WITH THEIR COLLEAGUES. THIS CLASS IS AN EYE OPENER TO THIS DYNAMIC..

Stuart B.
CONTRACTS MANAGER at HEWLETT-PACKARD
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