Tips for negotiating the best trade discount – Talk your way to a bargain
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Someone once said that everything in life is negotiable and this is certainly true when it comes to getting a trade discount. I'm always happy to discuss and negotiate deals with our customers, because not only do we usually reach a win:win outcome, but I also get great insight into what our customers really want!
There’s a subtle art to negotiating a discount and I've put together a few pointers for you to point you in the right direction.
- Know your market. Do some research, look at competitors’ prices and ask for attainable realistic discounts. Know why you should have the discount and be prepared to put your point across.
- Understand what motivates the seller and give out the right selling signals. Mentioning repeat business is always a good way to negotiate a more favourable price, you’re more likely to get a discount when you’re ordering in bulk.
- Always be polite and courteous when you are negotiating. Taking a hard line may get you the result that you want, but any future relationship is going to be soured by your attitude.
- Make sure that you have some prices fixed in your mind before you start negotiating. Have an acceptable price and a walk away price. Be prepared to walk out of the shop with nothing if your expectations aren’t met.
- Always make it appear that you have lots of alternative options. Telling the salesperson that they are the “only stockists” or that you’re really desperate does not put you in a strong position for negotiating that discount.
- Don't only focus on price - you've got a basket of items to negotiate on. If you can’t negotiate on price, you may be able to negotiate on the level of service. I’ve recently negotiated free delivery and installation of some new equipment even though I was unable to get the price down.
- It’s all about how you ask. Phrases like “Is this the best price you can do?” and “It’s a bit more than I wanted to spend really” are good ways of opening negotiations for those who aren’t used to asking for discounts. And you'll get better at it the more you practice - so the more you do it the better long term effects it will have on your future negotiations.
- Don't negotiate for a win:lose outcome. Your negotiation might be successful in the short term but a business that goes out of business because they fail to negotiate above their bottom line will only give you grief in the future.
At the end of the day, just keep in mind that a sales person will only ever give you a discount that they are happy with, so you have nothing to lose and everything to gain by asking to discuss the price. A salesperson will generally rather take a small hit in their commission rather than lose the sale altogether.
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