How to transition from crazy target prices -> to an open discussion -> to reasonable prices -> to make more money and save your sanity
This mini training is specifically created...
If you're getting inquiries with targets that make you think: "Oh, that’s crazy, but I need orders right now!"
And specifically, for you if you want your business back.
All of this wasn't your fault. Whether it was struggling with cancellations. Being dependent that buyers pay their invoices - you're fully aware that you don't have the time, resources and financial freedom that you truly need to run your business and live your best life.
That's why you're motivated beyond measure to invest your time, capacity and focus only on business that pays off.
You understand that when it comes to building a profitable garment export business - you need enough and the right buyers but also reasonable prices.
And you can get there if you do the work upfront.
So that you can have a thriving garment export business and a good life for you, your employees and workers.
Imagine you could get the prices your products and services are worth?
Are you ready and willing to roll up the sleeves and get to work? (I know, you are and the only thing that scares you is wasted efforts.)
The goal of this mini-training today is to create momentum to protect your prices while we're living in unprecedented times right now.
If you do these exercises BEFORE you get into your next negotiation, you'll be bringing in much more revenue for financial stability that you need right now.
Let's walk into you next inquiry with crazy target prices with easy and confidence.
Before we jump into the 5 strategies let's look at the big picture.
Let's start with your ...
So, check your head, friend. Why is this important?
This can be really frustrating to get crazy target prices.
It feels hopeless, there’s nothing you could do to get there, it feels final and you don’t really feel free.
Question: "What will come out of your mouth or your typing fingers if you think and feel that way?"
So first thing, check your head and feelings.
Worst thing you could do is to think you won’t get these orders.
Or that it’s not even worth to continue the conversation.
Promise me that please - check your head and feelings first.
Your thinking is a big deal. Good?
Hold on for a sec... how are targets even set?
Simple shocking truth:
Sometimes limit and target prices are quite RANDOM.
There’s very little reason despite the selling price. They come from: “Okay, this styles is similar to that one last season and we reduce a little”.
Or they see an online promotion from a competitor not knowing about their actual price and they work out the estimated fob.
A lot of times target prices that you see are NOT the results of careful realistic calculations.
So first, step a bit away from it and try to look at it as it is: Not edged in stone but a projected numbers on the computer screen
Now, what can you say to your buyers?
Because in their mind, they have their reasons, and they believe in these targets in the moment they give them to you.
So you don’t want to dismiss them too quickly otherwise they might feel rejected.
You might be thinking now: „What shall I respond?“
For instance, here's what I used to say.
Take a look if this suits you and you want to use something similar.
Some wording you could frame it along those lines:
"I want to be respectful for limit prices and I want to make sure we’re thinking about it at the same way.
I see you have target prices and I know you’re tight to them. So let’s see where we end."
3. WHERE YOU MIGHT GET STUCK
It's true: we don't want to start defending prices.
Think about it more like a broad discussion.
It’s showing that’s what it is – that’s what you really get.
It provides the connection of what they
really want and your offer price.
Let the customer decide if this is worth the difference to their target price.
The tricky part is not to get into a defensive mode.
“You’re too expensive.
I have a cheaper offer for this article.”
You heard that a million times? Well, I have.
What does this really mean?
We all know that buyers buy garments to sell them with profit. That pretty much sums it up.
This is what they’re paid for – so it’s their job to get the best price possible. Fair enough.
We all know that an experienced buyer just smells when there’s a chance to reduce prices. Especially now in these crazy times there’s a chance we might feel too afraid to lose a business.
But often enough the “alternative offer” is not the better choice. We’re quick to say the cheapest is always the best offer - but we both know – that’s not true.
We pay for price and performance - what we get for it.
Likely your buyers know about your performance and trust you have established – sometimes through years and years.
What we sometimes forget is that they also pay for your process that leads to a great product.
With process I mean all of it – production, handling, trust.
4. Get the fob prices you need to get through these times
Be in the know
Who is finally deciding about order placement? Try to get the buy-in from THIS person as soon as possible in the negotiating process.
Are you even talking to the right person?
Totally legit that the buyer wants the best deal.
Remember, you want to become or remain their main supplier.
And to do this you have to let them know that you get them. You know what they're going through and you're here to help. Acknowledge their pains and desires.
When they feel that you get them, their motives, you're making a connection and building a relationship.
We simply like people when they understand us and what we stand for.
That’s creating a bond and it’s more likely to find an agreement.
Business is between humans. Or robots? Just kidding.
That doesn’t mean you need to be best friends. - You know how I think about that, right? Ok, perfect. What else?
Your buyer might be surprised when you say: "That’s the best price I can offer."
One thing to think about is that’s a buyer's duty to negotiate.
If they get the notion that there’s a slightly chance for a few cents - they will. THEY HAVE TO.
They can literally only stop when you communicate clearly with words and your body language that that’s it.
Having this top of mind is helping you to not be intimidated by this maneuvering. Just the name of the game. You know that.
So, if you feel that your offer price is justified and competitive, communicate it with confidence.
That way your buyers come to know what to expect from you which always builds trust. More trust in the cooperation with you starts to develop.
Reducing prices a lot makes them leave with a warning feeling "There's something off, that's not legit."
You might know, I worked as a sales agent for 25 years for Indian knitwear exporter. I've experienced firsthand the missteps in pricing that I've tried and also the power of having a consistent and transparent pricing strategy.
Ask the 'why' question
Yes. You can simply ask them carefully how they came up with this target price.
Notice, I’m saying 'carefully' because asking 'why'-questions can feel interrogative and you want to soft-package the 'why' a bit.
So you can ask the 'why'-question without using the word 'why'. Like: “Please help me understand what is the reason behind this target price”.
And do that with the good intention to really understand.
Stack the value. How are THEY looking at your prices? How are YOU looking at your prices? How do you WANT them to be looking at your prices?
Best for last.
I believe to my core that this should be one of your most important jobs: To educate your buyers on how to look at your prices.
Before you walk through validating your prices with your customers you better walked through them in your own mind.
They are going to compare your price to the price of somebody else or the costs without you- and your job is to help them think through that.
And if they think through it on their own- no wonder their thinking will go straight to price.
So, you want to guide them.
What kind of details can you tell them that will get empowered, inspired, and educated? What price-myths do you need to dispel and strengthen their desire to buy more from you with reasonable prices?
If you follow me for a while, you know I’m obsessed with writing things down. You’ll gain so much more clarity after you got your thoughts out of your mind and onto paper. Once you get the right questions - you get into motion, and it becomes easier.
So, I created a template and cheat sheet for you that you can download right here.
You actually do that for your customers, to help them think in a right way about your prices.
At the end of the day, you engineer the prices together with your buyers and you need to get their buy-in to realistic prices.
You are in this for the long haul.
Try the things above and you'll often enough get prices that help you protect your revenue and sustain in your business in these challenging times.
You might be surprised what’s possible.
I know you have tons of ideas in you right now - you have it in you to make this work.
You know, I always love to hear from you...
What are your experiences around prices?
Comment right here or write to firstname.lastname@example.org
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