Definition: Price negotiation is the part of the conversation in which the purchase price and, if applicable, conditions such as payment or delivery terms are haggled over. This is where it is decided whether both sides can reach an agreement that they are satisfied with. For sellers, this means confidently representing the value of the offer while responding flexibly to customer requests without losing their own margin and value.

Preparing for price negotiations:

• Know your calculation limits: Every salesperson must know their lowest limit (walk-away price). Without this knowledge, you run the risk of giving in too much. You should also have alternatives up your sleeve: e.g., remove additional services or adjust the scope if the price has to be reduced so that the value comparison is correct.

• Value argumentation: Before the actual negotiation, the value should be clearly established (see benefit argumentation). Customers negotiate less aggressively when they are aware of the high benefits. So if you do your homework well (“This product saves you $5,000 a year...”), you have a stronger negotiating position.

Tactics during price negotiations:

• Anchoring: A well-known technique is setting an anchor. Ideally, the salesperson starts the price negotiation with their offer price (setting the anchor high) (cross-selling, up-selling, additional sales, complete sales, supplementary sales). People unconsciously orient themselves to the first amount mentioned. Example: The seller first says, “Our solution is around $10,000.” Even if the customer wants to haggle, they will do so based on this anchor. If the customer had first mentioned a budget of $6,000, the anchor would have been lower. So: If possible, first name a price that reflects your value (not unrealistically high, but confident).

• Slicing tactic (salami tactic): Don't give all discounts or concessions at once. Negotiate in small steps. For example, if the customer asks for a 10% discount, don't give it immediately, but offer 3% and ask for something in return (“If I give you a 3% discount, are we in agreement and will you sign today?”). This signals that discounts are valuable and will not be granted without a deal.

• Give & take (concessions): For every concession you make, you should also get something from the customer. For example, “I can accommodate you if, in return, you choose a longer contract term / book a service package / make yourself available to us as a reference customer.” This principle keeps the negotiation balanced – both sides should win (win-win, see below).

• Use silence: A simple but effective trick: After stating your price, deliberately remain silent. Many salespeople immediately continue talking out of nervousness (“...but there's also this and that...”). Instead: state the price, pause. Often, the customer will speak first – and may accept or make a counteroffer. Silence can also build pressure (pleasant pressure) in critical moments, allowing the customer to have their say.

• Don't be afraid of no: if the asking price is impossible and the customer does not budge, you must be prepared to politely decline. Sometimes the customer needs the salesperson's “no” to realize that they have gone too far. Stay firm: “I really can't do it for less than this price, otherwise the quality will suffer.” This is how you set a limit. Surprisingly often, customers then give in – they want the product, and your no signals that the value is real.

Discount psychology: Interesting: Customers love discounts, but a high discount that is granted too easily can call the value of the service into question (“Could I have gotten more out of it? Why was it so cheap – is something wrong?”). Paradoxical, but true: A little negotiation and a small victory for the customer (e.g., a 5% discount after tough discussion) feels better than getting 15% right away. Therefore: offer moderate discounts and let the customer work for them – that way, they will be satisfied in the end.

Focus on win-win: The goal is for both sides to be happy with the result (win-win strategy, see Win-win). The customer should feel that they are paying a fair price, and the salesperson should maintain their margins and not undermine the value of the product. Open, honest communication helps: “I want you to feel good about the price, but we also have to operate sustainably.” This is how you create understanding.

Conclusion: Price negotiations are not a personal battle, but a professional haggling for the right balance between performance and consideration. With the right techniques, preparation, and the mental strength to represent the value of your solution, price negotiations will go from being a source of anxiety to the successful conclusion of the sales conversation. Those who negotiate calmly, prepared, and fairly come across as confident to the customer - and are thus clearly one step ahead in the battle to find the best solution.