We sell computers and technology to corporations, and inevitably there are negotiations.   One of the perpetual issues that we have are sales team coming back to top management to ask for more ‘discounts’.   One of the most feared things, especially for inexperienced sales people or un-entrepreneurs  ( those not inclined to be business people) , is the worry that if you don’t give further discounts you will not get the deal.

If you are a businessman, one of the things that you should note is that just because a customer ask for a better price does not in any way imply that he does not see value in what you are offering.  As a natural entrepreneur, or businessman, it is their nature to appreciate your offering, and negotiate for an even better deal — notwithstanding if your deal is already good or even much better than you anticipated.

I remember when I was in my early teens, my father had a joint venture with  a Hong Kong businessman in exportin fresh mangoes to Hong Kong.  As an entrepreneurial family, I would go around also with with them to visit farmers and vendors in the market place, and source out products.

I remember this distinctly because it created an impression.  That time, I believe the buying rate that we normally get was between thirty five to forty five per dozen, depending on the size, quality, and supply constraints.

At that time, the supply was a little bit short, and we finally approached a vendor in the marketplace who seem to have some stocks arriving.  Since the Hong Kong businessman could not speak the language, I was the one asking the prices for him.

“How much, ” I inquired.

“Nineteen pesos per dozen, ” was the reply ( or at least was what I heard).

I told our Hong Kong partner what I heard, and he was ecstatic.  It was, he believed outrageously cheap, but he just could not let the opportunity go.  ” Tell the vendor, “, he said, ” that if she is willing to give it at seventeen per dozen, we will get the whole bunch.”

I relayed the message to the vendor, who turned up smiling, ” NINETY per dozen”, she said.

I was a littel bit embarassed.  She was offering it at ninety, and I was haggling it for seventeen.

But the Hong Kong businessman was nonchalant.  Well, that was how business was - he said. Even at the outrageously misunderstood cheap price of nineteen, he was still trying to see if we could get it at seventeen!

That lesson has stayed with me, and if somebody tries to bargain with you — remember this story . Just because they ask for the lower price is not an indication that they don’t think your price is already not good!  YOu just have to have confidence if you believe you are giving a good deal!