Price negotiation

Many entrepreneurs try to get jobs by lowering the price when negotiating with potential customers. Attention! If you sell your product through low prices, then you need a pretty good reason why you can and how you make it, despite still winning.

Some examples: IKEA leaves the labor-intensive and therefore expensive assembly of the furniture the customer and can therefore offer its furniture cheaper. ALDI has limited his range, so can buy in large quantities and cheap and dispense with a complex presentation of the goods. So ALDI can be cheap and still make huge profits. The Internet company Immobilienscout24.de can offer its ad spaces cheaper than most newspapers, because it itself has a relatively low cost by using the internet and computer instead of expensive, printed paper. You see: Yes, you can build a very profitable company by being cheaper than any other. But only if you also even have much lower costs through technology, manufacturing processes or other measures and therefore make profits even at low prices. If you can, can earn lots of money with this pricing strategy - but only then. Because you make clear:

Who sells just on price and increasingly reduced his profits they ruined themselves in the long run

But if you constantly other suppliers in price undercutting, to get to customers, while earning less and less or nothing at all, then you shovel your company's own grave. What can you gain more sales, if you lose the bottom line money doing?

Once always haggle haggle? Avoid the negative price spiral

Bargaining has become a popular sport. Many people think that if they can not lower the price, they are bad buyers. And so is basically always haggled, wherever possible. How should a founder handle it? My tip: Lower never the price without reducing the performance or something else to get it. As an entrepreneur you come from time to time in the uncomfortable situation that a customer wants to haggle over the price. But I, I do not think much of discounts - if you do not also simultaneously lowers the power accordingly. A client of mine has found a good way to wrest such discounts something good: He granted a discount when it gets a reference in return. Not optimal, but an interesting idea. Maybe you fall even others.

That doesn't mean we're perfect, but when we make mistakes we fix them.
As you learn as an entrepreneur, your dreams and goals, step by step to actually achieve
I have thought long what advice, what kind of advice I can give you in my Christmas e-mail on the way into the next year. It struck me again and again an article one, which I read last year about Michael Phelps, the American world-class swimmer, the say at the 2008 Olympics in Beijing and write 8 gold medals won. For this new record, he received from his sponsor a prize of 1 million dollars. With this money Michael Phelps set up a foundation whose first action was an educational program for children. This program was entitled "Dream, Plan, Reach".

In this program, children should learn to set goals, take responsibility and practice discipline. Dreaming, planning, achievement. Well, that could easily be the content of a training program for operators, right? This title is at least for me an apt motto for the next days.

I do not know how about you, but next to the hustle and bustle and the stress around the Christmas, for me is the time 'between the years', the days between Christmas and New Year, always something special. These days it is actually once quiet, there will be time to think, because I will not be distracted all the time by some everyday things and daily business. It's cold, darkness falls early and most people are in their homes. Like a veil settles a pleasant rest of the country. Time stands still a little. I see then back on the year that is ending and think about what I have experienced and done, how far I have come closer to my dreams. Then I think about what I have dreams and goals for the next year.

I have learned that putting through training, planning, goals and informed choice of action, anything is possible', Michael Phelps said in an interview. In fact, the program 'dreams, plan, achieve' a powerful tool. Read More