Offering discounts train your client to expect more price concessions in the future. Instead smart suppliers use their negotiating power to shift the conversation. Some tips:

- Focus on value: If the client understands the full value of the offering and its importance to their business, they are less likely to try to rattle you by threatening to switch suppliers.

- Avoid early involvement of senior executives: Customers know only too well that you and your executives are in a position to offer deeper discounts. Instead, they can prepare the account managers and sales teams to build value and defend pricing in such discussions.

- Frame the discussion as GIVE-GET: Develop your understanding of client's business and develop granular offerings to give them "choices with fences" to protect value.

- Silence can be a negotiating tactic: Be confident in the value you provide and carefully analyze switching costs by putting yourself in your client's shoes. Expect delays if you are holding firm on the price. Read Full Post