When manufacturing companies and wholesale distributors are faced with increasing prices they often lose ground when buyers push back on the new pricing. Of course, buyers are well trained to roadblock any attempts to increase prices from suppliers. In fact, buyers invest 15 times more in technology to help them manage the prices they pay compared to the investment made by sellers to better manage the prices they charge for their goods and services.
While there are a number of negotiation strategies that can be employed by sellers, why not just say “No” when a buyer tries to negotiate downward? Our pricing consultants see sales reps cave on price negotiations on a regular basis when a simple “No” often sidelines the discussion. You have the right to defend your prices. Why not put up the ultimate response as a starting point?
You can later drop back to less forceful approaches like deferring increases or trading value for the increase. Our pricing experts are often surprised how frequently the buyer will back down on their position. After all, they are trained to push back and most often they get a response in their favor. Many don’t know what to do when the seller begins to actually negotiate.
Start with “No”. You can always back up to a different offer later.