How retailers can win the price negotation game

By Keri Algar

SYDNEY, NSW: Switched on salespeople are able to take control of consumers who are expecting to negotiate a better price when visiting an electronics retailer.

A recent consumer poll has found that over 80 per cent of people expect to be able to negotiate a better deal at an electronics retailer. A mere four per cent said they expected to pay the ticketed price, while 15 per cent said it depended on what the product was.

Professional retail trainer and consultant, Bob Johnson, said it is important salespeople are on “equal footing” with customers by asking the purchaser questions, not the other way around.

“Using good questioning techniques affords the salesperson a degree of ‘control’, as well as differentiating themselves and their store from the ‘box sellers’, demonstrating (by their questioning) that they truly have the customer’s best interests at heart,” said Johnson to Current.com.au.

“Before you commit to even look at the price, get something in return.”

“For example, if you can improve the price, will the customer be going ahead today? Or, how will they be paying? Will they be taking it with them or having it delivered or installed? Get a commitment to buy!”

“Try to add value rather than cutting your price. Installation at reduced cost, added leads, cables, accessories.”

“If you do have to reduce the price, never discount the price to an even dollar amount.”

“Even if you already know how much you can reduce the price, don’t say something like, ‘Let me have a look at it (the price) for you’.”

“Look at your POS or pricelist and then get hold of a calculator and go through the motions of calculating something (a couple of times).”

“Let’s say the item is marked at $799.00. Rather than going back and saying ‘I can do that for $750.00’ (to which your customer will probably reply ‘Make it $700), go back to the customer with, ‘I’ve had a look at it for you and I’m happy to say I can bring it down to $772.64’.”

“Here’s what we are hoping will happen:

(A) The customer will take it at that price, because it sounds like you have trimmed the price to the bone.
(B) The customer will make your price a ‘round’ number by offering you $770.00 (at which point you adopt a pained expression and accept the customers ‘negotiated’ price). By rounding the price, the customer has effectively said, “I’ll take it”.
(C) The customer will not accept the reduced price, in which case you go back through the calculation process again and make another ‘odd’ price offer.”
 

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