How to Make an Offer-2
5. When competitors have got in touch with the client firmly, you have no choice but to make an extremely low price if you want to get the chance.
You must have met that situation that lots of competitors struggle for one potential client and one of them may be going to sign the contact with the client right away. In such a circumstance, if you want to get involved and win the game, the only tool you can use is a extremely low price. Though we often emphasize that a lot of factors such as quality, after-sale service, reputation, personal feelings etc play a very important role in cooperation, but in that condition, only price is the key one which can make your business get started successfully. And the price we offer must much lower than our competitor’s, which indicates an outstanding advantage thus attracting the clients greatly. However, it is not a common case, and this action needs your carefulness and animal spirits. You must prepare yourself and your products/service well and get information about the client and your competitors as much as possible; you must also endure the cost of low price. It’s a risk and a challenge; it’s also a chance that will help you to increase your market share.
6. The quotation strategy before concluding a business.
You have communicated with the client for a long time. After the long, full and efficient communication, both of the two sides have the willing to make a deal; the only thing left is price. This is called quotation before sealing the bargain or concluding a deal. At this critical moment, we must be very careful and cautious. There are some strategies that need our learning.
Let me give you an example for explanation. Suppose our price bottom line is 5000, the price for the product the client bought in the past is also 5000 but the quality is not as good as ours, and our former quotation is 8000. When it’s time for us to make a new offer before the deal done, I suggest the new price is 6800. Why do I choose this price? The reason lies in the following. Firstly, we must try to figure out the price range the client can accept in the mind. In this case, I guess it might be 7000 according to my experience and information. If I offer 7500, it’s much higher and the client might refuse and give up; if I offer 6000, the client will think we have much more space for profit and they will bargain for more discount. How about offering 6800? It’s within their top line and shows our great sincerity. If the client wants to bargain, they will not expect a bigger discount, because they will think our bottom line is 6000 or even 6500. This kind of offering can not only meet the client’s needs for a discount, but also show our good willing. Besides, such an offer is quite likely to result in a final deal at the price of around 6500, which brings us more benefit than expected. So you can see it’s tricky but also very helpful.
The above is some useful methods when salespersons make a quotation to the client. Learn more and think more, you will gain more! If you have any new ideas, share with us. Write to firstname.lastname@example.org.
In the end, I would like to wish you and your family all the best in year 2012!