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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 ezineaticles.com: "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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