Negotiating Tips April 10, 2013

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

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. We shall illustrate these techniques by testing a department store price on a refrigerator.

Sears, Macy’s or other department stores are tougher than most merchants or industrial sellers because they have a century of experience in holding the price line. If you can take on a department store, you will be able to test the price on any product or service, whether large or small. The principles are the same.

Imagine that you are in a department store. The refrigerator which you like has $1400 boldly printed on a large sign on top of it. In addition, the sign says that colors other than white are available at $30 extra, that delivery is free for 20 miles and that the deluxe ice maker is optional for $200 more. Can that price be reduced? The answer is “yes.” But you must ask for the reduction or you will never get it. NEVER.

What follows are approaches that can win concessions in any negotiation involving a seller’s or merchant’s firm price. Have the courage to try these ideas. They will work for you because they are win-win ideas.

  1. Quantity. They bought a stove and refrigerator and got a discount on both. If they owned an apartment house, they might have bought two or three refrigerators instead of one and obtained an even larger discount.
  2. Mixing. They bought something on which the price could not be changed together with another item that that could be reduced such as a warranty extension.
  3. Payment. They paid full price in three monthly installments without interest. This, of course, is the equivalent of a discount. Or they paid cash for which they received a 3 percent discount in lieu of using a credit card. One person at our seminar learned that she could get a one-day 20 percent discount if she opened a store charge account. Since she was buying $500 of merchandise, she opened the account.

We will discuss more approaches to win concessions in our next entry.

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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