“You’ll have to do better than that.”
Ever hear those words from a prospect after you quoted a price or submitted a proposal? Smart business people know that these words can yield great results because they often strike fear into a sales person’s mind.
But here’s the thing…
It’s just a negotiating tactic.
The vise is a subtle—okay, maybe not quite so subtle—way of getting someone to improve their price, offer a discount or make some other type of concession. And, it’s effective because many sales people automatically go back to the drawing board to recalculate their numbers, returning with a better price, more options or other concessions.
However, there is a more effective way to respond to this tactic and it sounds like this…
“Exactly how much better do I have to do?”
The main reason you ask this is to avoid negotiating with yourself which, by the way, is a very common occurrence.
There are two key things to keep in mind when using this response. The word “exactly” and the discipline to repeat this question several times. Here’s why.