Whether at the negotiation table or in daily life, bargaining is a common scenario. Bargaining is necessary because the two parties disagree on the price. In most cases, the buyer thinks the price is high, while the seller thinks that a price lower than the previous offer will cause losses. Today, there are many different ways to bargain, including the following
(1) Bargaining directly according to the original price
For example, the supplier’s offer is 523 yuan/unit, and the e-commerce company directly asks to reduce the fraction and change it to 520 yuan/unit. This method is easier to operate and the other party can accept
(2) Bargaining separately
E-commerce companies can make corresponding requirements on the payment method, delivery date, quantity and transportation conditions of the goods. For example, bargain with suppliers according to the convention that the more the purchase quantity, the lower the price.
(3) Bargaining on the total price
That is, bargaining according to the final transaction amount. For example, if the total amount of a certain product is RMB 153,811, then the e-commerce company can propose to remove the decimal and reduce it to RMB 153,800 or RMB 153,000.
(4) Cost Bargaining
E-commerce companies can start with the cost of the product, add the profit factor, compare it with the supplier’s quotation, and use this as a basis to ask the supplier to reduce the price. For example, the e-commerce company analyzes the supplier’s profit ratio based on the existing information, and then proposes a new quotation based on this. This is a way of bargaining according to cost, which has the advantage of reducing the component of false reporting, but the premise is that the cost estimate must be relatively accurate.
After having a certain understanding of the bargaining method, the next step is to formally introduce the focus of this section: negotiated bargaining. It should be known that whether it is bargaining, haggling or bargaining, they are all necessary links in the negotiation. E-commerce companies should have a clear understanding of this and formulate a detailed plan. This plan should be coordinated with inquiry skills, bargaining skills and concession strategies to make the negotiation go more smoothly. So, what are the techniques for negotiating a price?
(1) “Knock the mountain and scare the tiger”
During the negotiation, e-commerce companies may suggest potential crises to suppliers in a hint way, thereby forcing them to lower their prices. E-commerce companies need to remind suppliers of the unfavorable factors within the company, so that they are in a passive position on the price issue. At this point, e-commerce companies can then take advantage of the situation to propose their own prices, forcing suppliers to agree.
Of course, e-commerce companies should be careful about the intensity of the “knock the mountain and scare the tiger” technique, and should not be too aggressive. Instead, they should make suppliers feel that: I point out your potential crises. Although this is for my own benefit, it is also to help you objectively. If e-commerce companies show suppliers a sincere attitude of cooperation, then the bargaining will be successful.
(2) “Playing hard to get”
Playing hard to get means that when dealing with an enemy, you should first deliberately let him go, so that he relaxes his guard and fully exposes himself, and then take him down in one fell swoop. In price negotiations, it means starting with probing, and according to the supplier’s response, let the supplier follow your own pace.
At the negotiation table, e-commerce companies and suppliers argue with each other and seem to be evenly matched. At this time, e-commerce companies should be good at hiding their willingness to purchase and not show an eager mentality of having to buy, otherwise they will easily be led by the supplier and put themselves in a disadvantageous position.
On the contrary, e-commerce companies should treat this negotiation with a vague attitude, start from the inquiry, and observe the attitude of the supplier. If the e-commerce company judges that the supplier is eager to sell, it will offer the price it has set. If the supplier is not eager to make a deal, then the e-commerce company should also show that it has given up.
In terms of bargaining, if the supplier is eager to sell and is dissatisfied with the price proposed by the e-commerce company, it will often ask for a price increase. At this time, the e-commerce company can agree to the supplier’s request according to the situation in order to facilitate the negotiation. The reason why the technique of playing hard to get is effective is that it seizes the opponent’s weakness. Regardless of whether the opponent is eager to sell, there are corresponding strategies, which ultimately force the opponent to agree to the bargaining request.
(3) Difference sharing
During the bargaining process, the most undesirable situation is that neither party is willing to give in, that is, the e-commerce company is unwilling to increase the price, and the supplier is unwilling to reduce the price. If the two parties cannot reach an agreement on this, the negotiation may break down. Therefore, the difference sharing is also a compromise.
For example, the supplier said that the price of the fabric can only be as low as 14 yuan/meter, while the e-commerce company insists on its own price of 12 yuan/meter. The difference sharing method is that both parties give 1 yuan each, and the transaction price is 13 yuan/meter. Using the difference between the two parties’ bargaining as the transaction price can balance the interests of both parties and ensure that both parties get what they need.
Tips
The above lists three negotiation techniques. Of course, there are more techniques that e-commerce companies can use during the negotiation process. For e-commerce companies, the most important thing is to understand the difficulty and breakthrough points of the negotiation from these techniques, and use these techniques to negotiate with suppliers and finally successfully close the deal.