How to Respond When the Customer Says Your Price is Too High

My name is Deepak Malhotra and I'm a professor at Harvard Business School. I have been on the faculty of Harvard for 18 years, and my area of work (research, teaching, consulting/advising) is negotiation. This clip is part of a series of videos I will be posting on the topic of negotiation. Each video will be about 3 minutes long, and cover one insight, principle or tactic that will hopefully help you negotiate more effectively at work and in life. Please feel free to share this video/series with your various networks. Hopefully, we can create a lot of value together.
If you want to learn more on the topic of negotiation, feel free to check out either of my two best-selling books on the topic:
Negotiation Genius (with Max Bazerman)
Negotiating the Impossible

[@dattathreyam.g7264]

I have read your book and seen the UA-cam videos, I was able to see the Practical aspects of Negotiations. I am a Farmer and I don't have an MBA degree, your talks have made me confidant to deal with the buyer when it happens. I have learnt a lot both in theory and reality. Thanks a lot.
regards,
Datta Mysore

[@shreeabraham]

🎯 Key Takeaways for quick navigation:
00:00 📊 *Addressing Price Objections in Sales*
- Introduction to the common challenge faced by salespeople when their innovative product is perceived as too expensive.
- The scenario where buyers react negatively, stating the product is significantly more expensive than competitors.
- The crucial mistake to avoid: apologizing for the perceived high price, which can lead to a weakened negotiating position.
02:50 🚫 *Avoiding Apologies: Shifting to Value Proposition*
- Emphasizing the importance of not apologizing for the perceived high price but instead focusing on the value proposition.
- The risk of legitimizing competitors' prices and inviting negotiations on cost when apologizing for the high price.
- Encouragement to redirect the conversation toward the value the product or solution brings to the table.
04:41 💰 *Emphasizing Value Creation in Negotiations*
- The strategy of steering the conversation towards the value the product brings to justify its price.
- Encouragement to highlight the unique value proposition and differentiate from competitors.
- The potential to create a mutually beneficial deal by emphasizing the value proposition rather than getting stuck in a price negotiation.
Made with HARPA AI

[@blitzppa6092]

Excellent. Thanks

[@kangdanlin]

Hello, i just bought your book on amazon! Could you please talk alittle more about real estate agents negociation? I dont feel so relaxed when negociating with the owner uppon my comission, and the answers that i got from my teachers dont make me feel better. Their advice was basicaly to look confident and ferm when talking about comission.