Last week my consulting group had a discouraging conversation with a prospective customer. They wanted to discuss pricing before the scope of their project had been identified. This was a red flag for us. It told us they were price buyers, not value buyers, and our business relationship with them probably wouldn’t work out.
On the heels of that, I read William Scarpino’s post, Six Basic Negotiating Tips:
The First Tip Never discuss settlement terms until the
end of the process, when both parties are committed to trying to
resolve the situation… [Uh-huh, that was our problem #1.]
The Second Tip The purpose of negotiating is to
discover the term parameters of the other person. You want to know the
most the other person will pay for something or the least they are
willing to sell for so you can couch your initial offer or response to
strategically position your offer or proposal. [Problem #2 — prospect wouldn’t discuss their budget, just wanted to know our pricing.]
Scarpino offers four more tips.