How to Negotiate the Best Price for a Gaming Account
Explore our article on negotiating gaming account prices and managing sales pricing pressure. Discover strategies to close deals while minimizing concessions.
Navigating Pricing Pressure
As a salesperson, you’ll inevitably face demands to lower your prices on Smurf accounts. How can you secure the sale while minimizing financial concessions?
Pricing is a pivotal factor in any purchasing negotiation. The larger the contract, the stronger the incentive to haggle and the higher the expectation of price flexibility.
For low-cost commodity gaming accounts, most buyers recognize limited room for negotiation. Conversely, negotiating prices for something as complex as a nuclear power plant can take years without a fixed price.
So, how do you negotiate prices for products or services that fall between these extremes? Here are some guidelines.
Price Negotiation Guidelines
To effectively negotiate the price, first assess the prospect’s seriousness about not buying at the list price. If they lack viable alternatives, their leverage is limited, though they might delay purchasing.
When competitors’ prices are mentioned, inquire about the specific competitor and product to ensure it’s a comparable alternative. Some enjoy the art of negotiation simply for the thrill, even if they’re content with the list price, just aiming for a 10% discount for the satisfaction of the deal. Also, check your League of Legends MMR checker account before buying to reduce the cost.
Next, establish your bottom line, which may be determined by your company. Know the price limit at which you should walk away; without this, effective negotiation is impossible.
If a discount is necessary to secure the business:
- Firmly Decline Initially: The prospect might be bluffing. Keep communication open for them to return.
- Offer Small Concessions: If a 10% discount is rejected, counter with 11% instead of 20%, signaling little room for further reductions.
- Exchange Value for Discounts: Request faster payment terms or a customer testimonial in return for a discount.
- Add Low-Cost Value: Include items valuable to the customer but inexpensive for you, like an additional software module or accessory, mimicking car dealers who have larger margins for dealer-installed extras.
- Invoke Higher Authority: Use the “refer to a higher authority” tactic by stating, “I can offer a 12.5% discount; beyond that, it requires my manager’s/CEO’s approval.” This tactic can expedite negotiations as they realize repeated requests for discount approvals are impractical. Have fun with it by suggesting, “CEO approval is needed for that discount, but he’s on a three-week vacation.”
Avoid letting the CEO or Managing Director negotiate prices; as ultimate decision-makers, they lack the ability to defer to higher authority for larger discounts.
Other strategies include:
- Adjust the Offering: “To fit your budget, the basic product will suffice instead of the premium one,” allowing for future upselling.
- Offer Favorable Financial Terms: Propose delayed, staggered, or easier payment plans or financing.
- Limit Discount Duration: For recurring revenue, provide a temporary discount rather than a permanent one.
- Seek Reciprocity: In exchange for discounts, obtain something valuable like a customer testimonial, upfront payment, referrals, or immediate purchase orders.
- Implement Tiered Discounts: As for large deals, “The first 20 users are full price, the next 20 get 5% off, and 10% off for anything over 40,” ensuring unutilized discounts are not wasteful.
- Discount Once-Off Costs Only: If your OfferingOffering combines one-time and recurring revenues, discount the one-time component. Master negotiators give substantial product discounts, especially at quarter-end, but never on annual maintenance contracts, which are notably pricey.
Delay the Process: Their urgency might surpass yours. The Japanese excel at this, often still “considering” the deal until the last minute before your flight departs.
If a competitor’s lower price is cited, verify whether it applies to a comparable product by checking their website or requesting a written quote.
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