Where there are customers, there is price negotiation especially if the product or service in question is a high bid. Once you provide a customer with a quote, you are sure to get some resistance and subsequent requests for negotiation.
If you know your work thoroughly, you will have given a quotation that has room for negotiation. And if you have done this, you have nothing to worry about. You can allow the customer to beat you down to a certain price and no one will be at the losing end. So it is not the beating down that is the problem; it is how you communicate with the client which will eventually result in a settlement.
A price negotiation letter can be written to a customer to settle a situation such as this. The tone of the letter needs to be polite and informative. You would want to set a backdrop for an argument – you could point out how much a certain product has cost you or how much estimated profit you are deriving from it. This information can be used to give the customer an idea of why you cannot reduce the price of a product or a service.
If it is a negotiation letter that you are writing, you may also want to agree to the terms that the customer is suggesting provided it is within company rules. The following price negotiation letter sample should explain how this can be done.
November 4, 2014
Mr. Curt Phillips
738 Willow Way
Buford, GA 80293
Dear Mr. Phillips:
Thank you for your inquiry into the price reduction of your XTox T Series bulk order from Mechanics Galore. We called a meeting to discuss your request amongst the XTox T Series team and deliberated on every way in which we could possibly reduce this cost.
Please refer to the following facts that will help you understand why this is not wholly possible:
• XTox T Series is an innovative technology that our competitors are selling for 15% more than we are in bulk orders.
• Mechanics Galore’s profit stands at a mere 20% at the price per unit that we have offered to you.
Considering these two, I am afraid we cannot reduce the price of your bulk order by a 22% as you requested. However, we can make things easier for you by offering free delivery of your order anywhere in the United States. This in itself will cost the company much in terms of shipping and delivery but we are willing to take this on ourselves because we want to do business with you in future as well.
Please let me know if this is a viable solution to your predicament so that we can process your order further. I can be reached at (111) 111-1111 if you have any questions you may need answered.
Thank you very much.
William @ mc . com
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