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A colleague of mine recently attended a 4-day continuing education forum on business entrepreneurism. It was attended by 650 people.  Part of the curriculum was a section on negotiating skills for smaller business owners. One of the assignments that the lead instructor gave to all of the students was to go out shopping after class. He wanted every student to try to negotiate something off the price at every place they went, at any store, hotel or restaurant.  The lucky merchants of Orlando had 650 people all trying to get a deal.

It was not about need — it was for the pure sport of it. Isn’t that exactly what your customers do to you? Calling them customers might be a stretch.  Just like Survivor on TV, they just play a game to outsmart and outwit the retailer. If the retailer is quick to reduce the price, then they ask for more using every mind-bending strategy — from being cute and lovable, the “just for me” tactic to the pure intimidation approach to try to bully the retailer into getting what they want.

What are we to do to handle this new breed of customer? Actually, this is not a new breed. It’s been around for thousands of years. It’s just that we had a period of time where price integrity meant something.  I believe we have to do the same thing that our customers are doing.

What would you do when a customer asks the dreaded question: “Can you do better on the price?”

1. Be firm and maybe even a little annoyed. Then tell them you don’t ever negotiate on the price.
    
2. Compliment them on trying to get a better price in an upbeat positive manner, but then be firm on the price.
    
3. Use the “I wish we could” approach.  It’s as if you are acknowledging that is a good idea but you can’t really do anything.
    
4. Joke with the customer. If the item is $50, tell them you can do better and charge them $75. When they look at you weirdly, just say, “I don’t think I could do better than that from you.” They get so confused that they become happy with the $50 price. It’s cute and can sometimes be enough to deflect the focus.
    
5. Be willing to reduce the price by 10%.
    
6. Let customers negotiate. The price depends on how long the merchandise has been there.
    
7. Bundle things together. Tell the customer that you are willing to make a package price if you buy 2 or more.
    
8. Try the “I’ll do____________( this)  for you,  if you do _______________ for me.
    
9. Other

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These are just a few of the strategies you can use. Let me know what you prefer and even check off (i) and add your own. Please respond on this one because the more responses we get, the better this survey becomes. Plus I can’t wait to see what you all have to say about a topic that always frustrated me and that I was never quite sure how to handle it. Negotiate too much and you will get a reputation that you will always negotiate it. Don’t ever negotiate and look at a dog for another 3 months.
I can’t wait to see your responses. I will share them all with everybody next week.