Definition of Negotiation "reaching the most satisfactory outcome for ALL concerned" |
Power Pricing - Getting the Right Price for Your Products and Services
There's an old joke about the New York City blackout. Power was out everywhere, and the electric company couldn't figure out what was wrong or how to fix it. Finally, they decided that the only one who could solve the problem was a long-retired worker who knew the system inside and out. He came out to the power plant, looked around, picked up a hammer and tapped one of the generators. Suddenly, lights came on all through the area. Overwhelmed with relief that the problem was solved, they asked how much they owed him. "$20,000," he replied. $20,000? For tapping with a hammer? "Well," he said, "tapping with the hammer is $10. Knowing where to tap is worth $19,990." There are a couple of lessons to be learned from the joke. First of all, the value is higher when the problem still exists than after it has been solved. After all, if told he could restore the power for $20,000, officials would have written him the check immediately, without question. Afterward, the problem wasn't so urgent--it was solved. Quote your price and get agreement while the customer still feels the urgency (and the pain that you will remove). That's when the value is highest to them. Your agreement can include conditions and guarantees, such as the results you will obtain, and deadlines, if they want assurances about results. Maintain a little mystery. If they hadn't known that all he did was tap with a hammer, his services would have seemed more valuable. After all, they got the result they valued--the power was restored. Focus on the results, not exactly what methodology will be used. Don't let customers look behind the curtain. (Remember the Wizard of Oz?) If you are the only one who provides a particular product or service, or you have skills or training no one else does, the value of what you offer goes up. Highlight your exclusive set of training, education and experience. Use unique language to describe what you do. You can also create an aura of exclusivity by screening clients, and only accepting those who meet your criteria. This can work if you have a reputation already, but it can also help build your reputation, if you've got the guts to try it! Consider what your clients are used to paying, and charge at least that much. If your clients are used to paying $100 an hour, and you come in at $50, you probably won't get the job. On the other hand, if you can show that you are worth $150, you may be able to charge more than the going rate. Another way to get an hourly rate higher than others is to charge by the project, rather than the hour. For example, maybe you charge $150 instead of $100 an hour, but you get the job done in fewer hours. Get the client to look at total cost, rather than hourly rates. Once again, get them focused on results. This issue comes up all the time in my publishing classes, where I remind students that they are not selling paper. They are selling the information printed on the paper--information that will improve the lives of the people who use it. Paper is cheap. Useful information isn't. Keep in mind that the value of your product or service is related to the benefits your customers receive, and how they value those benefits. Present what you sell as solutions to problems, and you can charge premium prices for your excellent products and services. Copyright Cathy Stucker. As the Idea Lady, Cathy Stucker can help you attract customers and make yourself famous with inexpensive and free marketing ideas. Get free tips, articles and more at http://www.IdeaLady.com/.
MORE RESOURCES: 4 Big Tech product managers and an engineer share negotiation tips that nabbed them thousands of dollars in better comp Business Insider Gantz accuses Netanyahu of ‘sabotaging’ hostage deal negotiations with Hamas The Times of Israel University of Alaska faculty contract negotiations head for federal mediation - Anchorage Daily News University of Alaska faculty contract negotiations head for federal mediation Anchorage Daily News Melton, Pennsylvania mayors critical of union in Nippon-U.S. Steel deal negotiations Chicago Tribune Starbucks workers strike in Seattle, LA, and Chicago as negotiations stall KUOW News and Information Negotiations between Sparrow-U-M, workers on hold until 2025 Lansing State Journal Putin Thinks He Can Win: Why Would He Negotiate? Center for Strategic & International Studies What People Still Get Wrong About Negotiations HBR.org Daily Summa Health alleges Anthem holding up negotiations, insurer responds Akron Beacon Journal City Center negotiations down to one development team, sources say RichmondBizSense HHS Releases Final Guidance for Second Cycle of Historic Medicare Drug Price Negotiation Program HHS.gov Patient stressed amid Scripps Health - Anthem Blue Cross negotiation ABC 10 News San Diego KGTV Tulane Professional Football Negotiation Competition Tulane Law School | Collector Paul-Emmanuel Reiffers Reveals His Most Nerve-Wracking Artwork Negotiation Yet Cultured Magazine What People Still Get Wrong About Negotiations HBR.org Daily Ski patrol union contract negotiations reach agreement on 24th of 27 items, but not the main one: pay The Park Record COP29: Climate negotiation drafts are an affront to human rights Amnesty International Medicare Drug Price Negotiation Program: Negotiated Prices for Initial Price Applicability Year 2026 CMS What Medicare Negotiation Tells Us About Drug Pricing In The U.S. healthaffairs.org Tariffs as a potential trade negotiating tactic brownfieldagnews.com The Arsenal of Instability: How Expanding Western Defense Production Impacts Negotiations in Ukraine Center for Strategic & International Studies Craig unsure how CR negotiations will play out brownfieldagnews.com CCPD Crisis Negotiation Team Resolves Seven Hour Standoff with Robbery Suspect Culver City Crossroads The Negotiation Advantage: How Women’s Relational Skills Drive Better Deals Columbia University PON Live! Teaching Negotiation in Prison Harvard Law School M&A Negotiation Simulator: Open-Source Release of Alpha Prototype Stanford Law School HHS issues final guidance for second cycle of drug price negotiations American Hospital Association Join us for a Salary Negotiation Workshop University of Montana The Power of AI to Shape Negotiations INSEAD Knowledge Scared to negotiate job offers? Do it anyway. Here’s why. George Mason University Contract Action Team leaders ask for your involvement this negotiation cycle Minnesota Association of Professional Employees Adversarial Anticipation: Real-Time Simulated Negotiation Stanford Law School Impact of federal negotiation of prescription drug prices Brookings Institution Gregory Husisian Comments on USMCA Negotiation, Auto Industry Impact Foley & Lardner LLP Wheels & Deals: Mastering the Art of Negotiation for Settlement Talks and Mediations American Trucking Associations Idorsia provides update on the exclusive negotiations for the global rights to aprocitentan GlobeNewswire What Role Can Turkey Play in Ukraine Negotiations? Center for Strategic & International Studies 300 people trained in leadership, negotiation and strategic communication CAF -banco de desarrollo de América Latina IGA-455: Climate Leadership: Persuasion, Advocacy and Negotiation Harvard Kennedy School Lower Drug Prices Announced Under Medicare Negotiation Program AJMC.com Managed Markets Network Cost of Exempting Sole Orphan Drugs From Medicare Negotiation Harvard Kennedy School Lior Frankiensztajn named 2024 Fisher Fellow in negotiation and conflict resolution Harvard Law School Haub Law's Negotiation Teams Earn Major Recognition in the Villanova Baseball Filing Day Competition Pace News Negotiate Like a Pro HBR.org Daily CMS opens comment period for Medicare Drug Price Negotiation Program - American Hospital Association CMS opens comment period for Medicare Drug Price Negotiation Program American Hospital Association The First-Ever Government Negotiation Process for Drugs Has Finished, But the Politics Are Ongoing KFF Negotiation Presentation and Free Lunch Old Dominion University Ihab Khatib named 2025 Fisher Fellow in negotiation and conflict resolution Harvard Law School Farm aid negotiations fall apart Tri-State Livestock News Negotiations Break Down Between Teachers and District Sonoma Valley Sun Another Administration Win In Medicare Drug Price Negotiation Lawsuits healthaffairs.org The Negotiation Reality in Real Estate INSEAD Knowledge Treaty negotiation milestone and 2025 operating plan gives more certainty for Columbia Riv nwd.usace.army.mil Anna Maria College Hosts First New England Negotiation Competition Anna Maria College Starbucks headquarters cafe unionizes as U.S. negotiations drag The Seattle Times Negotiation Timelines of International Legal Instruments (July 2024) Center for International Environmental Law Statement on Energy Permitting Reform Act negotiations Citizens' Climate Lobby LSU Executive Education Offering Bundled Negotiation Strategies Courses - Louisiana State University LSU Executive Education Offering Bundled Negotiation Strategies Courses Louisiana State University No, the Maple Leafs are not blowing the Mitch Marner contract negotiation - The Athletic The New York Times Negotiation Meeting Notice for UTL24-031 East and West Water Treatment Plant Upgrades City of Boynton Beach 'No better option': Selectboard votes to hire attorney for acquisition negotiations with Housatonic Water Works theberkshireedge.com |
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