Negotiating? When to Quote a Price

When you are engaged in the sales process with a customer, who and at what point should a price be quoted?

Sales negotiation training experts say unequivocally that the seller should be the first to quote a price. They claim that the seller should take the initiative to set a price…and make it definite. If the seller, instead, leaves it up to the buyer to quote a price, the final agreed-upon number will be much lower.

Here is an example of how the process works:

• When you offer your product/service at a precise cost, say $2,225, the average agreement price will be somewhat less than asked but still in the neighborhood of $2,125.
• If, however, you ask the customer what they would be willing to pay, you may get a price quote of $2,250. But the final cost will only come to about $2,050.

Which number would you prefer? Quote a price before the buyer so you get the best deal.