Sales Insights: How to Respond to “Best and Final” Pricing Requests
How should sellers reply when they are not going to win a transaction but are asked for a “best and final” number? Some respond with the lowest possible price with the thought being they may be able to steal the business (unlikely) or at least make it a skinny deal for their competitors. It’s not a tactic I endorse.
I believe floating aggressive prices can come back to haunt sellers if and when the roles may be reversed in the future. It would be awkward if a seller’s customers got wind of pricing that was lower than what they paid.
My suggestion when asked for best and final pricing is to ask:
How to Respond to Final Price Requests
“Am I the vendor of choice and is price the last remaining obstacle?”
- If the person asking is not a decision maker, indicate that he/she, the decision maker, your manager and you would have to meet to see if the transaction could be completed.
- If the person asking for better pricing says you are not yet the vendor of choice you can respond:
“It sounds as though you have more work to do in finalizing your decision. If I become the vendor of choice at that time we can all meet to see if we can come to terms. For now, let’s leave pricing as an open item.”
Some positive things happen by taking this approach:
- You avoid putting low ball numbers on the street
- The “buyer” hasn’t gotten what he or she wants
- It makes sense for both parties not to negotiate unless you are Column A
Always and never don’t usually apply to sales, but my suggestion is to always act as though you are Column A when asked for better pricing. If you are, buyers will come back to you. If you’re not, you keep your dignity by not getting dragged into a discounting death spiral.
Download How to Win at a Higher Price Report
Your chances of losing a sales deal are greater when you have the higher priced offering. But that isn’t always the case. Our research uncovered that in 25% of sales wins, buyers choose the more expensive solution. Why? Buyers say these higher priced winners provide the best value with minimum risk. Get the report to learn how you can win the sale without changing your price.
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