 | ||
| ||
|
Definition of Negotiation "reaching the most satisfactory outcome for ALL concerned" |
|
|
Embarrassed To Discuss Your Prices? Seven Common Reasons We Cant Talk About Them
Last week, a wonderfully-skilled electrician installed a new light fixture for us. He was competent, courteous and efficient. He answered all our questions simply, with skill and eloquence. I was amazed, as you might imagine, when I asked him, "How much do we owe you?" and his embarrassed reply was, "Gee, is $50 okay?" With the quality of work he'd done and the amount of time he put into it, I would have expected to pay double that amount. His resistance to naming his price reminded me of my small business clients who have the same problem. All entrepreneurs feel fear at some point, including attorneys, consultants, coaches, and writers. It's a natural part of starting or growing your business. It can be uncomfortable to take risks, to name your price and tell a prospective customer that you want to work with them. Roberto Goizueta, the late chairman of Coca-Cola, said, "If you take risks, you may still fail; but if you do not take risks, you will surely fail. The greatest risk of all is to do nothing." Put this mantra into your head: Risk equals reward. So, what's the problem? I've discovered seven common reasons why we're afraid to discuss our fees: 1. Do you feel your fees are too high? 2. Do you think you're not qualified or experienced enough to charge that rate? 3. Are you afraid of rejection? (Or, possibly, afraid of acceptance, which will mean you'll have to perform?) 4. Are you afraid the prospect will raise an objection to the fee, and you won't know how to reply? 5. Are you shy and uncomfortable talking with strangers? 6. Are you afraid to take risks? 7. Are you generally uncomfortable talking about money? Where does this come from? Is it part of your personality or is this a behavior you learned from your past experience or culture? In many families and cultures, it's taboo to talk about money or to ask to be paid. While it might be personally beneficial to look inside yourself for the reasons why you act this way, it's also important to get unstuck by using techniques which help you move forward, such as: ? Have a good pricing strategy. Research the average fees for your type of business so that you know your prices are in line with expectation. If you can't get competitor pricing information, try Brenner Books (http://www.brennerbooks.com). If your experience warrants it, increase your pricing to reflect your higher skills, knowledge and experience. If you're not sure how to create a pricing strategy, research it online or talk with a small business consultant or mentor. ? Establish that the prospective customer needs your services before discussing price. You'll feel more comfortable discussing your fees if you know the prospective customer really want to hire you. Ask a lot of questions to see if their problem and your solution are a good match. ? Put your fees on your website and brochure. In this way, prospects will know your fees before the sales conversation begins. ? Be honest. Tell the prospect what the options are for your services or products, any quantity discounts you offer, and how payment is delivered. Practice saying this over and over again until the words and phrases slip comfortably from your mouth. ? Act confidently when delivering your fees. Don't downplay your fees. State your fees, then shut up. Don't make excuses for your fees, or ramble on about them. Look directly at the prospect while delivering your fees. ? Don't automatically offer discounts. This tells the prospect that your fees are soft and that they're negotiable. Instead, state your fees and options and ask them to tell you which package is right for them. ? Act "as if." How would an experienced person in your industry act, when discussing her fees? Act as if you are that person and you'll find your confidence increasing with each conversation. Practice, practice, practice. ? Get training. If you're uncomfortable with the whole sales process, get sales training. By attending a class, you'll learn different ways of saying the same thing, and you're bound to find a way that's right for you. ? Refer out. If the prospect really can't afford your fees and you can't afford to offer a discount, refer that prospect to someplace where they can find an alternative. Say, "If you can't afford my fees, you can try these online referral services where you might find someone in your price range." Talking about your prices can be uncomfortable. But with practice and persistence, and a willingness to overcome your fears, you can begin to have comfortable conversations with your prospective customers. Karyn Greenstreet is a self-employment expert and small business coach. She shares tips, techniques and strategies with self-employed people to maintain motivation, stay focused, prioritize tasks, and increase revenue and profits. Visit her website at http://www.PassionForBusiness.com
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
How To Deal With A Complainer How To Deal With A ComplainerA Complainer Is Characterized by:1. Dissatisfaction in their personal life2. Negotiate to Your Advantage The hardest and most important part of any negotiation is knowing when to walk away.Few things are sweeter than a successful negotiation session where both parties leave the table with a winning solution. Where to FIND the BEST Employees -- Obviously, you might logically say, "that is good!" You would most certainly be on track feeling good about everyone in your area having a job. Getting everyone working and being more self-sufficient is our logical goal. Writing an RFP (Request for Proposal) A while back, a potential client provided me with some general details of the writing work he wanted me to do for his company. Then he asked me to send him a proposal. Win-Win Power Negotiating Let's talk about win-win negotiating. Instead of trying to dominate the other person and trick him into doing things he wouldn't normally do, I believe that you should work with the other person to work out your problems and develop a solution with which both of you can win. Suppliers as Your Partners in Cost Reduction This article is one of the many articles still to come in which I will discuss very basic yet proven techniques that you could use immediately in your encounters with your suppliers.Oh but wait, to find any value in this article, you must be a firm believer that Purchasing strategies have evolved from just 1) focusing on price and 2) focusing on quality, reliability, responsiveness and total cost to a much broader focus of building supplier relationships. The Art of Haggling Did you know that at one time in this country that there were no fixed prices on anything. You would go into a store and find an item you needed then you would begin the process of negotiating the price. Negotiating Tactics: Don't Let 'Good Guy - Bad Guy' Control the Sales Negotiation Counter one of the classic negotiating gambits by addressing it directly.You've assembled a brilliant sales proposal for a new client and when you arrive to the meeting to hammer out the final details, you suddenly find yourself sitting across the table negotiating with two people. Negotiating Skills: Ask For More Than You Expect To Get It creates some negotiating room, and you might just get what you're asking for.Whether playing the role of buyer or seller in a sales transaction, asking for more than you expect to get is a classic opening position in negotiations. Secrets of the Trade Revealed: Bartering for Business In its simplest form, bartering involves an equal trade. One business swaps a good or service for another. Negotiating Tactics: How To Strike A Negotiable Opening Shot There is no right or wrong to fire up your opening negotiation.. Four Ways To Work Out Business Disputes Business owners have four options to resolve disputes with partners, vendors or customers. Each option is based on different assumptions, and entails a different cost. How To Make An Inflexible Bureaucrat See You As A Person Inflexible Bureaucrats Are Characterized by:1. Cares little about your happiness in life2. How Barter Can Help Your Business Online or Offline How Barter Can Help Your BusinessBarter trade is a powerful instrument that represents a solution for companies with available stock or services. By accepting payment in trade money instead of cash, a business maximizes their efficiency by increasing stock turnover or billable hours. Are You Scaring Away Potential Customers? When you are trying to make a sale and ask someone to fill out a credit application and new account form, do your potential customers turn around and run to the competition?Author Michelle Dunn, in her new book "Become the Squeaky Wheel," explains how you can avoid scaring customers away and keep them coming back. First, find out what your competition is doing, do they have a credit policy? If they do, what is included? What does their credit application look like? How many forms do new customers have to fill out? Do they have good paying customers? Look online, a lot of business website will have their credit applications available online. How To Communicate Using Space What Is Proxemics?The study of the communicative aspects of personal space and territory is called proxemics. Everyone is surrounded by an invisible zone of psychological comfort that follows us everywhere we travel. Determine Your Rate And Negotiate Carefully With Unreasonable Clients Consultants who offer executive assistant or computer services on a virtual basis must know their value and be prepared to gauge their billable rate to meet the circumstances.At some point everyone encounters potential clients who expect professional work at rates that are less than appropriate. Better Internal Proposals A colleague of mine has a problem. We belong to the same association and he's been trying for quite some time, without success, to get support for one of his proposals. Managing Conflict, in Life & Work: Using Ancient and Modern Approaches "Conflict" is a word that can have varying degrees of severity, meaning, and implication for each individual or circumstance. For example, the conflict that is experienced in our current, daily lives seems insignificant in comparison to the Samurai, or those in war, who faced death on a regular basis. Business: Keys To Negotiating Well Whether it's buying a car, asking for a pay rise, saying 'no' to a friend or renting an apartment - at some stage in our lives we all are going to need to know how to negotiate. Yet, so few of us know the basic skills before embarking on life changing purchases or decisions! These 8 keys will assist you negotiate well.
|
|
Home | Site Map | Disclaimer | Privacy Policy | CCL WebServices |
| © Career Consulting Limited 2010 |