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Imagine you are a seller and a prospect just walked into your store and starts checking out your products. Now, you are stuck in a sweet little dilemma, i.e., whether to make a move and present him with an offer or wait for him? And while you are dwelling over this thought, you already know that eventually, things will come down to either of the two things – Deal with a negotiation or the prospect walks out. Clearly, you wouldn’t want the latter to happen. So, how can you avoid them later?
Well, the answer to it is pretty the same as the answer to your sweet little dilemma. The answer is to take control of the situation with proper business negotiation strategies. In other words, go ahead and talk to the prospect and eventually offer a negotiation.
Before further getting into why you should make the first offer in a negotiation, let’s address the elephant in the room first – Why People Avoid Making the First Offer in Negotiation? It generally stems from the fear of either leaving extra money on the table or just quoting a price that’s quite higher than the prospect's expectation. As a result, while you should take the lead, it must be done properly.
You see, usually, in the situation above and others like it, everything comes down to an agreement. In an agreement, the pricing and the solution are crucial to finalize a deal. A deal generally goes through the process of negotiation. Hence, it would be best if you always looked to make the first offer in a negotiation. After all, it is one of the important negotiation skill.
If you take the initiative, you are more likely be in control of how the negotiation goes. Therefore, when you make the first offer in a negotiation, you can ask for a budget, and based on the response you receive, you can carry on forward.
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