In negotiations, an important success factor is the ability to shift the focus from price to value. By fostering a collaborative and value-centred approach, skilled negotiators can shift from a price sensitive focus into meaningful discussions about impact and outcomes.
This requires a shift, from talking to listening, and asking questions that uncover priorities, challenge assumptions, and position the differentiation needed to have value-driven conversations.
By focusing on what customer’s truly value, skilled negotiators can elevate every conversation into a relationship built on impact, relevance, and outcomes. Here are four proven strategies to prioritise value:
Propose different levels of expertise
Offer a range of expertise levels to address specific customer’s challenges. This reveals the customer’s most valued skills, highlights potential skill gaps, and justifies differentiated pricing based on the expertise you can provide. It also highlights the value you’re offering as adaptable and tailored solutions.
Flush out timeline sensitivities
Shift the customer’s focus to the importance of timing and the potential risks of delays by presenting pricing options linked to timing. For instance, a success fee for an early finish, higher price for immediate access, and lower price for extended timelines.
Connect value to reduced performance risk
Link pricing to the customer’s tolerance for performance risk. This positions your offering as a strategic solution that addresses critical concerns like product reliability, schedule adherence, and system issues. By focusing on performance outcomes, you demonstrate a commitment to delivering measurable outcomes and value creation.
Co-create the value proposition
To strengthen alignment and the credibility and relevance of your differentiation, invite customer’s to jointly develop the business case. This prioritises value over price, and shifts the conversation to a shared understanding of the problem and the ways in which it can be jointly solved.
Self-coaching tips
In sales, it’s often said that the person who talks the most loses.
Why? Because rather than pushing and telling, asking insightful questions can draw out information that helps a buyer to see value ahead of price. Try these discovery questions to uncover more about what a buyer values:
- What has motivated you to consider us over other options?
- What decision-making variables will the successful bidder need to meet?
- How are these variables weighted (e.g., critical, highly desirable, desirable)?