Negotiating prices with customers is one of the most challenging activities of salespeople. Clients and salespeople have different goals, customers want cheaper products and sellers want to earn more, and close sales. According to Tom Reilly, author of the "Crush Price Objections", there are six principles that salespeople have to consider when they are negotiating higher prices with clients.
The first principle is the attitude. You have to think positive, and be sure about yourself. When you show optimism, you can build confidence with clients. Feeling panicked about a negotiation is not the correct solution.
The second principle is to use time to your advantage. Good salespeople hold their most important request when the client feels that there is no solution because the best concessions are made at the end of a negotiation.
The third and fourth principles are summarized in preparation and the ability to wait. Professional negotiators develop a negotiation plan before visiting a client. They prepare their field; to get this they explore everything about the customer. Also, they do not give everything at the beginning; they do not jump too quickly. They act step by step. This strategy will give you flexibility.
The fifth principle is to not offer first. When there is a difference between your prices and the prices of the client, do not offer first, it is recommended to ask the client for an opinion to resolve the problem. Do not act quickly, wait for the suggestions of the client, this is better for you.
The last principle is to know your walking point. It is very important to have very clear ideas of what you want; this will give you confidence when you are negotiating.