Nothing but negotiation

The Gap Partnership

Price flexibility can smooth sales negotiations

Reducing delivery and storage costs can help firms have a flexible approach to pricing

27 August 2010

Flexible pricing strategies can often help firms smooth the sales negotiation process and establish a long-lasting business relationship, it has been claimed.

Negotiators are often unable to greatly vary the selling price of their product as a minimum value is often set to cover production costs.

Dr Jim Anderson, a professional sales negotiator, expressed his belief that businesses could ask the other side if they could receive the product directly to reduce storage costs.

He wrote on "If the customer can help out in some way that will reduce storage costs, then all of a sudden you may have a great deal more flexibility in your negotiations."

Having reduced costs, the selling firm could potentially lower the asking price of their product, thereby improving the chances of a successful deal.

Dr Anderson also claimed that delivery costs can be lowered if the buyer agrees to take over the process or is flexible with the delivery method. 

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