How to Negotiate With Customers

The right negotiation techniques can leave you and your customer satisfied with the results.

No matter what type of industry you're in, you most likely have people buying your product or service. Service-based purchases are easier to negotiate with customers because there's usually a scope of work involved. But if you sell products, that shouldn't stop you from trying out some effective and relatively simple negotiating techniques. A few things that can be negotiated with customers include discounts, payment terms, delivery options, warranties, insurance, customization and quality standards.

Instructions

1. Know your customer. Understand your customer's industry and what he's used to negotiating. A small business owner who's never hired a copywriter before might not be used to negotiating payment or revision terms. Talk with your customer about his experience with your industry and learn details about his as well.

2. Choose what aspects of your products or services you'd like to negotiate. For example, if you offer warranties on a particular product, you can negotiate the terms of the warranty and the cost. On the other hand, if you're completing a project, such as a graphic design project, you can negotiate the time frame for the work, the cost and any applied discounts.

3. Negotiate around the needs of the customer. For example, if your customer needs a website created but has a limited budget, focus on negotiating the scope of the work, rather than the price. On the other hand, if the customer wants a large amount of work completed within a small time frame, focus your negotiation on receiving payment that compensates you fairly for the rushed work.

4. Avoid giving in fully to the customer. If your customer asks for a substantial discount, don't accept it without asking for something in return, such as a longer time period to complete the project or a clause in the contract that states there will be only limited revisions of your work. Giving in too easily will shake the balance of power between you and your customer and may result in you receiving unfair compensation.

5. Address the customer's concerns. Always ask your customer if he has any questions or concerns, and if he does, address them one at a time. Explain your position clearly, and make sure that your customer understands where you're coming from. Your customer will appreciate your attention to his concerns and will be more likely to do business with you.

References

• Microsoft Office: Negotiate Successfully with Customers