For some people – doctors, automotive technicians, and dry cleaners, to name a few – the price is never haggled over. This is because the people behind those industries have created, over the course of many decades, a culture of unquestioned price acceptance in consumers’ minds.
How awkward would it be to tell your dentist “I’d like to offer you $500 to perform my root canal,” with the going rate for the procedure being around $900? Chirp, chirp – it’s rather hopeless, right?
Why shouldn’t you demand the same respect your dentist receives? After all, there is an investment of time, money, and effort on your part, just as the dentist. What on earth makes people more willing to pay for a root canal than what you have to offer? Everyone deserves reasonable compensation for the work they do, right?
The answer is that while both are ultimately services, the average person is imminently aware of the benefit of a root canal, as well as the high level of skill inherent to medical dentistry. Most consumer- and professional-level service providers do not get to enjoy the same level of public acceptance of pricing because the services they provide are not immediately quantifiable, measurable, or (in many cases) tangible.
So how do you handle the situation when the company you have submitted a proposal to responds that they like your plan, but not your price? The challenge becomes changing the conversation from a price negotiation to a discussion of the value of your services.
Let’s take a closer look at the top five tips for negotiating service, not price.