PurchTips - Edition # 142

 

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Negotiation Psychology That Suppliers Use

By Charles Dominick, SPSM, SPSM2, SPSM3

Is Negotiation Psychology Being Used Against You?

Sometimes simply asking for a better price will get you a better deal. Other times, the value of your prospective purchase may be too small to qualify for a lower price.

But consequences for simply asking for a better price are rare. So you should always at least ask, regardless of the likelihood that you'll actually get a better price.

Sellers use psychology-based negotiation techniques to dissuade you from asking for a better price. If you are aware of these techniques, you can resist being influenced by them and you'll always remember to ask for that discount. Those techniques include:

The Pre-Emptive Strike – Sensing an imminent price discussion, a seller may say something like "We don't play games with our pricing. We give a price and, if you like it, we'll do business. If not, we'll wish you luck with someone else."

The Self-Proclaimed Good Deal – The "power of suggestion" is a real phenomenon in psychology. By telling you that you are getting a good deal, the seller hopes that you agree and don't challenge the pricing. Of course, just because a seller says a price is a good deal doesn't make it one.

The Final Detail – Sellers often refrain from talking price until they have covered all the details and benefits of their offering. They hope that you or your internal customers will be "sold" on doing business with them before considering price.

The Red-Tape-Wrapped Price – Salespeople are rarely the final decision-makers for price improvements. Usually, prices are decided upon by their management. When salespeople sense that you're rushed, they'll make getting price approvals seem like a time-consuming, bureaucratic task.

Now that you know how sellers try to prevent you from asking for better pricing, remember to ask anyway. You'll save more money now and then.

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