Issue link: https://www.e-digitaleditions.com/i/873536
26 FEDA News & Views Your value-added analysis sheet would look like this: The Most Your Customer Value-Added Item Vs. Company "A" Would Pay Extra for That Added Value Reputation 0% Service 2% Problem Solving 4% Delivery (-2%) Under this scenario, your customer would be willing to pay you up to 4 percent more than your competitor. Of course, your customer will often say, as our Albertson purchasing agent did, "You guys are all the same. You all provide good quality except your delivery isn't very good. You've got to get much more competitive with your pricing." If you've done the value-added analysis and it's accurate or reasonably accurate, you can see behind the purchasing agent's mask. The negotiation starts when you say hello. At this point you may be saying, "Everything you say is true but if I'm the Baker sales representative talking to the Albertson purchasing agent and he says to me, 'Your competitors are lower and you've got to cut your price,' what do I do now? That purchasing agent isn't going to tell me their real scenario, what they said to each other, or what they really think our added value is worth versus our competitors." www.globefoodequip.com • 800-347-5423 QUALITY, PERFORMANCE AND • Widest selection of mixers and slicers • Broad line of Gas and Electric Cooking equipment • 2-year warranty on Mixers, Premium Slicers & Globe branded Gas Cooking • Ship Now! • Award-winning after sales support Why Why ? QUALITY • PERFORMANCE • VALUE Correct. If the fi rst time you thought that there might be a price negotiation was when you were talking to the Albertson purchasing agent, it's too late. You don't have the information you need, and it's going to be diffi cult to get it. And that takes us back to our fi rst point. Be prepared for a price negotiation while trying to avoid one. The negotiation starts when you say hello. The time to start fi nding out about potential competitors, how your customer views them versus you, the problems they've had with competitors, whether anybody can do as good of a job as you can..... Those conversations should take place at the very beginning of your discussions with your customer. Have as many contacts with your customer, and with as many people in your customer's shop, as possible. Ask direct questions, indirect questions, feel people out gently, and try to get a picture of their whole situation. Prepare vigorously for a price negotiation and, at the same time, do everything that you can to avoid one. About the Author Michael Schatzki is a master negotiator who, for over 20 years, has provided negotiation training and coaching for thousands of people in the U.S. and globally. He can be reached at (888) 766-3530 or at www.negotiationdynamics.com. © Michael Schatzki – 1998. All rights reserved