In business negotiations, buyers often use various strategies to get a lower price. These strategies include anchoring, counterattack, and price shock, and sellers need to have ways to deal with them. This article will explore 6 common buyer price reduction strategies and countermeasures to help sellers better deal with these challenges.
1. Anchoring Strategy
Buyers often propose a budget cap or target price at the beginning of the negotiation to anchor the bargaining range. For example, a buyer might say, “We hope to spend no more than $50,000.”
How to deal with it:
Don’t wait for the buyer to propose a price first, try to propose a price first.
Ask the buyer why they have such a budget to better understand their needs.
Try to expose the buyer’s “tricks” and clarify their true price in their hearts.
2. Counterattack Strategy
Buyers often respond immediately after seeing the price: “Your price is too high!” This is a common counterattack strategy designed to put pressure on sellers to lower the price.
How to deal with it:
Ask the buyer why they think the price is too high and listen to their explanation.
Fully understand the buyer’s needs, their explanations will usually affect your decision.
Provide reasonable explanations, such as pointing out that your product is different from your competitors, or explaining the value behind the price.
3. Price shock strategy
The buyer may act shocked by the price you offer to get your attention. This strategy is designed to put the seller under pressure in order to get a lower offer.
How to deal with it:
Don’t be affected by the buyer’s “performance” and stay calm.
Ask the buyer why he thinks the price is high and look for potential “loopholes”.
Based on the buyer’s response, find strong arguments and reopen the negotiation.
The above are some common buyer price reduction strategies and how to deal with them. In business negotiations, both parties have their own goals and strategies, and understanding and dealing with these strategies is the key to success. Sellers need to stay calm and have a deep understanding of the buyer’s needs in order to better reach a consensus and achieve a win-win result.