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8 Pointers for Setting a Price in Negotiations | Entrepreneur

Setting a negotiation price is critical for entrepreneurs. After all, this one factor in negotiations can drive the profit in a deal.

Here are eight tips for successfully negotiating the price of your product or service:

Related: Break Through Uncomfortable Power Struggles in Sales Negotiations

1. Don’t go below your reservation price.
The reservation price is the price at which the seller becomes indifferent about doing the deal.

Perhaps it’s the break-even price or the point when the profit margin shrinks to a an undesirable level. Determine your reservation price. Never go below it.

2. Focus on value.
Direct your discussion with the customer to be on the value delivered, rather than the price.

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8 Pointers for Setting a Price in Negotiations.

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