How to negotiate higher prices - secrets revealed in Newbury
Negotiating higher prices? Charging your clients more in the middle of a recession? It might sound crazy, but in this morning’s Masterclass at the Newbury Business Group saw Negotiation Expert Steve Jones reveal some of the powerful techniques that make this group member a national leader in his field.
He also witheringly condensed the famous book by Stephen Covey ‘The 7 Habits of Highly Effective People’ into four bullet points – but more on that later!
Today the foremost networking group in West Berkshire met at Donnington Valley Hotel, rather than our normal home at nearby Donnington Valley Golf Club, and spirits where high are members reported the normal powerful mixture of collaboration and successful deals.
Steve Jones talked about shifting the balance of power and how vital this was when negotiating for higher prices, giving examples from his own experience. He also asked how is it when we are kept waiting we insist it is ‘fine’ and allow ourselves to be pushed around and put at a disadvantage. It is not fine and allowing yourself to be put pushed around will undermine negotiations.
For example, when you go out of your way to help a client and they thank you... Do not simply say ‘That’s okay’, instead accept their thanks and agree that it took some effort and skill and you are glad it has helped them.
Typically, faced with the prospect of increased prices a client will go through a number of processes. Understanding and anticipating these can help overcome objections:
- Dismissive
- Defer
- Details
- Irrelevant issues
- Sanctions
- Negotiate
He stressed that whatever happens you have to be resolute and stick with your price increase.
Ideally you should have a key message. Where do you add value? Focus on that alone and – and leave it at that. If you can talk to your clients well in advance of announcing a price increase about the value you offer they are less likely to object to a price increase.
In a lively question and answer session Steve Jones also revealed the four ways people – including each of us – interact with one another through listening, or rather not in some cases.
- Ignore: Simply not paying attention.
- Waiting to speak: When you are just waiting for the other person to finish, so you can speak.
- Selective listening: Only hearing what you want to hear.
- Active listening: Carefully listening and paraphrasing what you have heard back to the person.
Steve Jones, in his own inimitable style concluded: “The 7 Habit of Highly Effective People is 320 pages of turgid American rubbish; I have just given you the one good thing in it!”
Actually, like so many of the 10 minute sessions that conclude the weekly networking meetings in Newbury, it offered terrific value and if you are serious about business in West Berkshire then why not attend the foremost networking group in the area?