Negotiations
Training
You're
Not the Only Game in Town:
Neutralizing Tactics:
Competition
When push comes
to shove and multiple people are trying to
earn the business of a company, some people truly revel in taking
advantage of the situation. Purchasing departments just love
to pit various
vendors against each other so as to get the best deal on a product
or service purchase. Car dealers have been using this one for years...
Sally Driver:
"It's nice and I really like the color. I need to think about
it for a couple of days. Can I get back to you on Friday?"
Larry Haggler:
"Suit yourself... there was a couple who was just here looking
at this car. They're coming back this afternoon to buy it. I wouldn't
wait.
This is a very
powerful
tactic and is used by buyers
and sellers alike. Sellers know that when supply is limited
that they can charge higher prices and use
competition. Just watch prices shoot up when the hottest automobile
rolls off the assembly line. Buyers use it when multiple
suppliers are submitting bids for a purchase.
To neutralize
this tactic, we recommend asking
questions to uncover
information on what the competition is offering. Is the offering
truly the same or are there differences? Are the terms similar?
Are there any hidden fees? There is a
great deal you can learn about what you're truly up against.
Telly: "I'm
really surprised by this agreement.
There are some terms that are a bit restrictive. You know, PressureChem's
contract isn't as thick and their pricing is more attractive than
what you are offering us."
Kelly: "Can
you give me an idea of what PressureChem's pricing includes? Maybe
you can help me understand how they handle some
of the terms that are of concern
to you."
Once the Competition
tactic is used on you, utilize questions to get to the bottom of
the other party's
real or alleged concerns:
- "Are
there any volume requirements to get better pricing?"
- "What
length contract are you being asked to sign to get that discount?"
- "Will
they deliver the same product?"
- "What
type of testing has their product undergone?"
- "Are
the shipping
terms the same?"
- "Will
you have to purchase support from them as well?"
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