Marketing Generics Application Note:
“It’s too early to say” Pricing negotiation techniques
Price positioning and price negotiations are the most tricky and demanding part of the whole sales and marketing cycle. Price too high and you risk losing the business – price too low and you may gain the business but lose margin. So how do you fix and then announce a price in a way which avoids or at least minimises these risks? The problem is that many sales and marketing people are groping in the dark when it comes to pricing, and theprimary reason is that they don’t really know how to price, or at what level. So the big challenge for Sales and Marketing is to make the activity as logical and process-driven as possible, to eliminate errors and maximisethe opportunity, but also to be able to successfully play the poker game that is price negotiation with the buyers. Revealing your hand too early kills off your chances to optimise the price for your company. This Application Note explains a key technique you can employ in price discussions and negotiations.
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