This is a subject I'm so passionate about, because my understanding of the truth captured in the above title is what has kept me in business this long. I often like to start this kind of write-up by saying that the ideas I offer are mine/based on personal experiences I have had as a solo entrepreneur for over 8 years now. You, the reader, have a right to disagree with them - but that would NOT make them wrong!

The society in which I operate is one in which "regulation" of most transactions is for the most part either non-existent or barely enforced, if at all in place. For instance, during trips on different occasions to neighboring countries like Ghana and Cameroon, I discovered through personal experience, and discussions based on those experiences, that it was the norm or accepted practice to buy according to agreed measurements and standards.

In Ghana's Accra, a Taxi driver once explained to me that "everyone" knew that the least you could pay for a taxi drop, no matter how short the distance covered, was 7,000 cedes (This was back in July 2005).

Haggling Exists ONLY Where Agreed Standards Do NOT!

The foregoing negotiating scenario is in huge contrast to what obtains in our society where scales can hardly be found in use in most petty trading stalls, electricity meters rarely get read in issuing electricity bills to consumers, and taxi drivers/other transporters charge arbitrary rates - making your ability to haggle the primary determinant of how much you eventually spend.

In other words, most times, planning and budgeting is very difficult here because you never really know what you're going to come up against when you have to go shopping. People here are so used to haggling, to get almost everything when they have to engage in transactions, with one another.

So, How Does This Affect A Business Person Looking To Make Sales?

Well, I'll tell you that it is first of all the "mentality" of your prospects. You see, in a society like this, you need to be alert to the fact that people you are likely to approach for business often think of how they can "haggle" with you to get MAXIMUM benefit from you at little or no cost.

Haggling, for them, is a way of life, and if they have not done it, they often are not satisfied that they have gotten the best bargain. Do you know that I have seen people who were offered an item which they knew sold - normally - for N100, at a giveaway price of N70(effectively a loss), by a desperate seller, STILL go on to ask "Can I pay N50?".

I would NEVER do that to anyone. I mean, I would NEVER go ahead and buy from a desperate seller an item that I KNOW cost him/her more than the selling price s/he is offering it to me - especially NOT when I can afford to pay a better price, that will help the seller retain a reasonable profit margin.

Maybe I feel this way because I earn a living by "selling" mostly personal services. But then again, for me, I would say it goes beyond that, to the fact that I believe doing business should NOT make us lose our ability to function with consideration and compassion in relating with our fellow human beings.

By way of interest, I will add that societies that have succeeded in making haggling UNNECESSARY did so by establishing STANDARDS for virtually all areas of business interactions in society. Once people know there is a generally accepted rate, price or fee for a unit of product or service, the need for haggling is totally removed (or drastically reduced). What is left will be options of negotiation - for instance possible price reduction per unit, in relation to total volume purchase to be made etc. Hopefully, one day, we will arrive at this level of development.

The Purpose Of A Sales Discussion

By now, of course, I'm sure the reader knows that I abhor haggling in ANY form it may occur. I do NOT see any benefit to it - especially when the option of NEGOTIATION is available. To continue, I will now explain specific differences I SEE, between HAGGLING and NEGOTIATING, ending by pointing out how the latter ultimately benefits ALL parties involved better than any variant of the former that may be adopted.

The purpose of a sales discussion should ultimately be to ensure parties involved get mutually rewarding benefits. So, you as a provider should aim to convince your prospect that your product/service can deliver benefits that will address the needs s/he has satisfactorily.

And of course, you will offer a price or fee that is not only profitable for you, but will also be reasonably affordable for him/her. If you really want to make progress, I believe it is imperative that you strive to be as affordable as possible. In this regard, I have written another article titled "You Do Not Have To Be Expensive To Be Profitable". You might want to read it.

If you study the writings of Richard Branson, about his Virgin range of products/services delivery philosophy, you will see that he offers superior value at affordable prices. He is able to do this by employing what he has termed a "David vs. Goliath" strategy, in which he maintains low operational overheads that make it possible to outrun larger competitors in the same market, using "affordable" pricing to attract higher volume patronage. Do you love what you do? If YES, then adopting a similar approach to Branson's should NOT be a problem, and you are likely to be better off for it, in the long term!

There Is A BIG FAT Difference Between Haggling & Negotiating

a. Haggling is based on intent to gain unfair advantage - which is not something anyone can really be openly proud to admit. I know some people say - in the real estate business for instance - that a person desperate to sell, will even be grateful to get any buyer.

But that I feel is one of few exceptions. My concern here is however with normal business transactions in which products that are made, or services to be rendered are being discussed. Haggling to me suggests a desire on the part of parties involved, to - ultimately - "exploit" one another. At the end of the day, one person at least "loses", while the other "wins". So, not everyone is "happy" or fully satisfied.

b. Negotiation derives from a desire to get the best/most agreeable or mutually beneficial deal for both (or all) parties involved. At the end of the day, most times, it's a win-win for all concerned (at least that's how they feel!). You should aim to ensure that all those you do business with, end up afterwards feeling that it was beneficial for them to have had dealings with you in that regard.

Note also that in your sales conversations, your purpose should be to convince the prospect or client that s/he WILL feel "good" AFTER doing business with you. In other words, that you will deliver on your product/service promise to his/her satisfaction.

How To Have More Negotiation - & LESS Haggling - Sessions In Your Sales Conversations!

How each party feels AFTER the event often determines which of the two (Haggling or Negotiating) has taken place. And a good indication of how people "feel" is often reflected in how they react to subsequent future opportunities for REPEAT business dealings with one another.

For long term relationships to develop or be sustained in any business relationship, all parties involved MUST feel they have gotten a fair deal. That means the "seller" must feel s/he has made a profitable sale. And the buyer must feel s/he has been given value or benefit that is worth the price s/he paid.

So, if you want to make more profit, you have to ensure your sales conversations focus more on "negotiation" and less (if at all) on "haggling".

Did you ask how? Quite simple: Decide on a profitable LOWER limit on your price or fee for the product/service you will offer prospects or clients. Outline the key features/benefits it delivers that justifies the price or fee you have settled upon.

During your sales conversations, use the foregoing in making your offer to the prospect or client. Prepare to counter any objections s/he may bring up, by comparing what you offer with what is in the market place, in a way that shows that yours results ultimately in a superior benefit.

NEVER let him/her make "price" or your "fee" the only basis for discussing buying from you. Make counter offers to any price/fee reductions (not below your set LOWER LIMIT), s/he requests for instance by indicating s/he may have to give up one or more features of the standard offer to get such a reduction. This will make it clear that your prices are NOT arbitrary - eventually building credibility for you in the buyer's mind.