What is the Right Price?

“It never gets good enough to stop us from asking for better.”

It is never the customer who will decide the right price because they are always stuck up in the circle of “good-better-best”. The Seller has to decide the right price and that is final.

The important thing to understand is that how does the seller propose the right price to the customer because the customer psychology is governed by the following principles
There is no price which is final.

  • All offers can be negotiated till one side is ready to give it all up.
  • The customer always tries to frustrate the seller into discounting
  • For purchases which are not exigent, the last word is always with the buyer
  • The “Tipping Point” of sales is dynamic and depends on multiple variates

 

I propose the following to the seller:

  • Opening offer should always be higher than the desired closing offer.
  • Understand Sellers BATNA (Better Alternative to a Negotiated Agreement)
  • Understand Buyers BATNA
  • Deal will always happen withing the two BATNA’s. ( This zone is called ZOPA – Zone of Possible Agreement)
  • Allow the customer to choose the final price within ZOPA

The price which looks right to the buyer is acceptable to the seller as long as the same is within ZOPA (Zone of Possible Agreement)