How To Negotiate With Customer, 7 Steps

How To Negotiate With Customer, 7 Steps

7 Steps to Negotiate with Customers Effectively

Negotiating with customers can be challenging, especially when you want to close a sale and maintain a good relationship. However, with the right skills and strategies, you can negotiate effectively and achieve your desired outcomes. Here are seven steps to help you negotiate with customers successfully:

Key Takeaways

Understand your customer’s needs and goals

Establish your value proposition and differentiation

Prepare for common objections and questions

Set your target price and walk-away point

Use effective negotiation techniques and tactics

Handle the closing stage with care

Follow up and maintain the relationship

1. Understand your customer’s needs and goals

Before you start negotiating, you need to know what your customer wants and why they want it. This will help you tailor your offer and present the value of your product or service. You can ask open-ended questions, listen actively, and empathize with your customer’s pain points and challenges.

2. Establish your value proposition and differentiation

Once you know your customer’s needs and goals, you need to show them how your product or service can help them achieve those objectives. You also need to highlight what makes your offer unique and superior to your competitors. You can use facts, testimonials, case studies, or demonstrations to support your claims.

3. Prepare for common objections and questions

Before you enter the negotiation, you should anticipate the possible objections and questions that your customer might raise. You should also prepare clear and convincing responses that address their concerns and overcome their resistance. For example, if your customer objects to the price, you can explain the benefits and features that justify the value of your offer.

4. Set your target price and walk-away point

Before you start negotiating, you should also determine the optimal price that you want to achieve and the minimum price that you are willing to accept. This will help you set realistic expectations and avoid making concessions that are too low or too high. You should also know when to walk away from a deal that is not profitable or beneficial for you.

5. Use effective negotiation techniques and tactics

During the negotiation, you should use various techniques and tactics to persuade your customer and reach a mutually beneficial agreement. Some of these techniques include:

  • Building rapport and trust with your customer
  • Using positive and assertive language
  • Asking for more than what you expect
  • Offering discounts or incentives in exchange for concessions
  • Using silence or pauses to create pressure or elicit reactions
  • Using trial closes to test the customer’s readiness to buy
  • Using alternative or multiple offers to give the customer options

6. Handle the closing stage with care

The closing stage is the final and most crucial part of the negotiation process. You should handle it with care and avoid making mistakes that could jeopardize the deal. Some of these mistakes include:

  • Being too eager or desperate to close
  • Giving ultimatums or threats
  • Agreeing to terms that are vague or unclear
  • Not confirming the agreement in writing

7. Follow up and maintain the relationship

After you close the deal, you should follow up with your customer and ensure that they are satisfied with the outcome. You should also maintain the relationship and provide ongoing support and service. This will help you build loyalty, trust, and repeat business.


  • Negotiate with customers as partners, not adversaries
  • Negotiate with customers based on value, not price
  • Negotiate with customers by listening more than talking
  • Negotiate with customers by asking open-ended questions
  • Negotiate with customers by offering options and alternatives

How to Negotiate with Customers: A Statistical Report

Negotiation is a vital skill for any salesperson, as it can help you close more deals, build better relationships, and increase customer satisfaction. However, negotiation is not a one-size-fits-all approach. Different customers may have different needs, preferences, and expectations, and you need to adapt your strategy accordingly. In this report, we will present some statistical data on how to negotiate with customers effectively, based on the latest research and best practices.

The Importance of Negotiation

According to a survey by HubSpot, 38% of salespeople say that getting a response from prospects is the most difficult part of the sales process. This means that you need to capture their attention and interest quickly, and persuade them that your product or service is worth their time and money. Negotiation can help you achieve this by:

  • Demonstrating the value of your product or service to the customer
  • Addressing the customer’s pain points and challenges
  • Overcoming objections and resolving conflicts
  • Creating a win-win situation for both parties
  • Building trust and rapport with the customer

A study by Harvard Business Review found that effective negotiators can increase their sales revenue by 12.4% on average. Moreover, negotiation can also improve customer retention and loyalty, as customers are more likely to stay with a company that meets their needs and expectations.

The Key Elements of Negotiation

To negotiate successfully with customers, you need to consider four key elements: preparation, communication, collaboration, and closure.


Before you enter a negotiation, you need to do your homework. Research the customer’s background, needs, goals, budget, and alternatives. Identify your own objectives, priorities, and bottom line. Prepare your value proposition, pitch, and counteroffers. Anticipate possible objections and questions from the customer.


During the negotiation, you need to communicate clearly, confidently, and respectfully. Use open-ended questions to understand the customer’s perspective and interests. Listen actively and empathetically to the customer’s concerns and feedback. Use facts and data to support your arguments and opinions. Use positive language and body language to convey your enthusiasm and professionalism.


Negotiation is not a competition, but a collaboration. You need to work with the customer to find a mutually beneficial solution. Focus on creating value for both sides, rather than haggling over price. Seek common ground and areas of agreement, rather than dwelling on differences and conflicts. Use concessions strategically and sparingly, and ask for something in return.


The final stage of negotiation is to close the deal. You need to summarize the main points of agreement, confirm the customer’s commitment, and address any remaining issues or doubts. You also need to follow up with the customer after the negotiation, to ensure that everything is clear and satisfactory. Send a written confirmation of the deal, thank the customer for their business, and maintain contact until delivery or implementation.

The Best Practices of Negotiation

Based on our analysis of various sources , we have identified some best practices that can help you negotiate more effectively with customers:

  • Be proactive: Don’t wait for the customer to initiate or dictate the terms of the negotiation. Take charge of the process and set the agenda. Make the first offer if possible, as it can anchor the negotiation in your favor.
  • Be flexible: Don’t be rigid or stubborn in your negotiation. Be willing to adapt your strategy and tactics according to the situation and the customer’s behavior. Be open to new ideas and suggestions from the customer.
  • Be respectful: Don’t be aggressive or rude in your negotiation. Treat the customer with courtesy and respect. Acknowledge their opinions and feelings, even if you disagree with them. Avoid personal attacks or insults.
  • Be transparent: Don’t be secretive or deceptive in your negotiation. Be honest and straightforward with the customer. Share relevant information and data with them. Don’t make false promises or claims that you can’t deliver.
  • Be creative: Don’t be limited or conventional in your negotiation. Think outside the box and look for innovative ways to create value for both sides. Offer additional services or products that can enhance the customer’s experience or solve their problems.

Negotiation is a crucial skill for any salesperson who wants to succeed in today’s competitive market. By following these tips and techniques, you can negotiate more effectively with customers, close more deals, and build long-term relationships.

Frequently Asked Questions:

Q1: How do I negotiate with a difficult customer?
A: A difficult customer may be someone who is aggressive, demanding, unreasonable, or indecisive. To negotiate with such a customer, you need to remain calm, professional, and respectful. You also need to focus on finding common ground, creating value, and offering solutions.

Q2: How do I negotiate with a customer who wants a lower price?
A: A customer who wants a lower price may be motivated by budget constraints, perceived value, or comparison shopping. To negotiate with such a customer, you need to justify the value of your offer, show them how they can save money or time in the long run, or offer them discounts or incentives in exchange for concessions.

Q3: How do I negotiate with a customer who is in a hurry?
A: A customer who is in a hurry may be under pressure from deadlines, competitors, or other factors. To negotiate with such a customer, you need to speed up the process, simplify the offer, and use urgency as a leverage. You also need to avoid rushing the closing stage and ensure that the agreement is clear and confirmed.

Q4: How do I negotiate with a customer who is hesitant or unsure?
A: A customer who is hesitant or unsure may be lacking information, confidence, or trust. To negotiate with such a customer, you need to provide them with more information, reassurance, and testimonials. You also need to address their objections and questions, and use trial closes to gauge their interest and readiness.

Q5: How do I negotiate with a customer who has multiple decision-makers?
A: A customer who has multiple decision-makers may be part of a large organization, a team, or a family. To negotiate with such a customer, you need to identify the key influencers, stakeholders, and gatekeepers. You also need to tailor your offer and communication to each of them, and facilitate their consensus and approval.


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