Sales speech | price negotiation time
The price of the product is often the topic of greatest concern to both parties. The seller wants to obtain higher profits, and the buyer hopes to effectively reduce the purchase cost. In the negotiation of the price, the two sides often point to the stalking battle.
Industrial products companies generally have three quotation strategies:
I. Cost-oriented pricing
Basic logic: first determine the sales volume of the product; then calculate the unit cost and profit target of the product; finally determine the product price
Cost plus pricing
Target income method:
For example, General Motors adopts the target revenue pricing method. When the company is pricing the company, it is required to achieve 15-20% investment profit.
Target profit price = unit cost + (target profit rate × investment cost) / sales volume
Pros and cons:
Favorable side: relatively simple, clear, easy to manage. The control of the profitability of the company is more accurate.
Disadvantages: Given the market and customer factors, pricing is difficult to be accurate. There is no flexibility in practical use.
According to the pricing situation of competitors, the horizontal comparison compares with the competitors, their own advantages and disadvantages to develop a competitive price.
Product value and customer relationship are stronger than rivals: pricing is higher than competitors.
Product value is higher than the opponent, and customer relationship is not as good as the opponent: pricing and competition are the same.
The value of the product is lower than the competition, and the customer relationship is stronger than the opponent: the price is slightly lower than the competitor.
Product value and customer relationship are not as good as the opponent: give up the offer.
3. Pricing of component values.
The value perceived by the customer is estimated based on each additional benefit that the product brings to the customer, and the price of the product is determined on this basis.
Design gains and losses
When selling some high-quality products, the promotion strategy that is often used is not to introduce the advantages of these products to customers to make them want to buy, but to explain to them what will be lost if they don’t buy them.
With these three pricing strategies in hand, we can target the customers. When customers question the price, how should we deal with it?
Basic speech in price negotiation