What is Price Negotiable & How To Respond to a Negotiable Price Request (With Examples)

By Thomas Bennett Financial expert at Priceva
Published on October 18, 2023
In the intricate dance of sales, price negotiation plays a pivotal role. Whether you're a budding entrepreneur or an established business, the question, "Is it possible to negotiate prices?" is one you'll inevitably encounter. Responding effectively not only enhances business prospects but also fosters long-term customer relationships. This article aims to shed light on the essence of price negotiation and provide a comprehensive guide on responding adeptly.

What Is Price Negotiable?

The term "price negotiable" signifies a realm of possibilities in determining a product or service's final cost. It's not just about numbers—it's about finding a balance where both the buyer and the seller feel they're getting a good deal. In essence, it's about bridging the gap between a seller's pricing strategy and a buyer's perception of value.

In today's highly competitive market, a fixed price isn't always the final price. Consumers are more informed and often expect some level of negotiation, especially in sectors where high-ticket items are sold, or where the market is particularly saturated. Thus, understanding the concept and nuances of "negotiations prices" is crucial for any business looking to thrive.

How to Respond to a Customer's Price Negotiation Request

In the realm of sales, price negotiations are inevitable. The key lies not in avoiding them, but in navigating them effectively. The approach to this nuanced dance requires a mix of psychology, strategy, and a keen understanding of your product's value proposition. Let's delve into 12 strategic tips, enriched with examples, to respond assertively and smartly to a customer's coordination request:

1. Share the lowest terms you can offer and add variables

When offering a deal, be transparent about the lowest terms that still protect your margins. For example, if you're in the electronics market selling a tech gadget, consider bundling it with a complementary accessory at a discounted rate. This not only adds value for the customer but also might encourage an immediate purchase, benefitting both parties.

2. Examine why they want to negotiate and actively listen

It's essential to discern the underlying reasons behind a customer's wish to negotiate. If they highlight a competitor's cheaper offering, delve into the comparative benefits of your product. Perhaps it's the added features, extended warranty, or superior post-sale service that sets you apart. Tailor your counteroffer based on these unique selling points.

3. Focus on the simplest issue first

Before diving into intricate terms, it's beneficial to settle simpler matters. For instance, if a customer is concerned about delivery charges, iron out that detail before moving on to product customization or bulk discounts. Resolving straightforward issues can set a positive tone for the rest of the negotiation.

4. Trade discounts for concessions

Rather than offering flat discounts, think of them as trade-offs. If a customer seeks a 10% markdown, propose conditions like an upfront purchase or a commitment to buy in volume. This strategy ensures you're receiving value in return for the price adjustment.

5. Convince them of the value of your product

In a market saturated with options, it's crucial to articulate your product's unique advantages. By emphasizing its distinct features, unparalleled quality, or extended warranty, you can justify a slightly higher price point. Remind the customer that an investment in quality often leads to long-term benefits and savings.

6. Negotiate as long as possible

While time is valuable, drawn-out discussions can sometimes be beneficial. The longer the negotiation, the more invested each party becomes. This commitment can, at times, lead to the other party making concessions they might not have initially considered.

7. Talk about future transactions

Build a vision of a lasting business relationship. By hinting at more favorable terms for upcoming deals, you create an incentive for the customer to return, ensuring repeat business and building a foundation for loyalty.

8. Prioritize the relationship

In the grand scheme of things, fostering a loyal customer base can be more valuable than maximizing profits on a single sale. Express genuine gratitude for their business interest and demonstrate a genuine willingness to arrive at a mutually beneficial deal.

9. Don't be trapped by emotional blackmail

In negotiations, emotions can run high. It's crucial to distinguish between genuine concerns and manipulative tactics. While empathy is essential, safeguard your business against decisions made solely on emotional grounds.

10. Save the hardest issues for last

Begin with topics where common ground is easily found. Once a rapport is established and both parties have enjoyed some successes, the atmosphere becomes more conducive to tackling contentious issues.

11. Keep track of the issues requiring discussion

Efficient coordinations are structured. By maintaining a checklist, you ensure that all critical points are addressed. This organized approach prevents oversights and streamlines the process.

12. Assert your company's needs

While negotiations involve give and take, it's crucial to stand firm on matters that impact your company's sustainability. Be transparent about the costs involved in maintaining product or service quality, and ensure that any agreed-upon terms don't compromise your business's viability.

Techniques For Price Negotiating

Navigating the complex waters of price negotiation requires finesse, strategy, and a good understanding of human behavior. While some might argue that effective negotiating comes down to sheer determination and willpower, seasoned negotiators know that employing specific techniques can tilt the balance in their favor. Below, we delve into three such techniques that have proven effective across various industries and scenarios:

1. Ask questions as a negotiating skill

Engaging in meaningful dialogue is a cornerstone of successful negotiations. Asking the right questions can provide a clearer understanding of the other party's priorities and constraints. Instead of merely stating your position, encourage them to articulate theirs. For instance, by asking, "Why do you believe a lower price is justified?", you shift the onus onto them to validate their request. This not only helps you gauge their expectations and reasoning but also allows you to craft a response that addresses their specific concerns. Remember, the more information you gather, the better positioned you are to find common ground.

2. The nibble negotiation

The nibble strategy is akin to the "foot-in-the-door" technique. Once you've reached an agreement on the main terms, you introduce an additional, relatively minor request. The psychology behind this tactic is that, having already committed to a primary agreement, the other party is more inclined to agree to a small extra concession to seal the deal. For example, after negotiating the price for a service, you might ask for a slight extension on the payment terms. This strategy is subtle, but when used judiciously, it can add considerable value to your side of the bargain without causing major disruptions.

3. Lowballing

A classic negotiation tactic, lowballing involves starting the negotiation with an offer that's intentionally on the lower end of the spectrum. The primary goal isn't necessarily to get the other party to accept this initial offer but to set a reference point. When you start with a lowball offer, it can make subsequent, slightly higher offers seem more reasonable by comparison. However, a word of caution: while this tactic can be effective, it's essential to ensure your initial offer isn't so extreme that it offends or alienates the other party. Striking the right balance requires a deep understanding of market dynamics, the value proposition at hand, and the personality and expectations of the person you're negotiating with.

Tips on Preventing a Heated Price Negotiation

Navigating price negotiations can be akin to walking on a tightrope, especially when stakes are high. While the objective is to secure the best possible deal, maintaining a positive relationship with the other party is equally crucial. As the adage goes, "It's not what you say, but how you say it." With that in mind, let's explore some methods to ensure the conversation remains productive and respectful, even when disagreements arise:

1. Plan

Planning is more than just a preliminary step; it's the foundation of successful negotiations. Take the time to research and anticipate potential objections, concerns, and counterarguments. This foresight allows you to craft thoughtful, measured responses. Furthermore, by understanding the other party's perspective and interests, you can frame your proposals in ways that resonate with their needs and aspirations. A well-prepared negotiator is less likely to be caught off-guard and is better positioned to steer the conversation in a positive direction.

2. Negotiate on value

Price is often the focal point, but it's merely one facet of the larger value equation. Instead of fixating on the numbers, highlight the unique benefits and advantages of your product or service. By emphasizing the long-term value, support, and overall experience you offer, you shift the narrative from a transactional debate to a discussion about partnership and mutual success. For instance, elaborate on the comprehensive training or premium after-sales service that accompanies your product, setting it apart from competitors.

3. Shared interest

Every negotiation involves two or more parties, each with its goals. By emphasizing the shared benefits of an agreement, you foster a collaborative atmosphere. Instead of framing the discussion as a tug-of-war, spotlight the potential synergies. For example, "By working together on this deal, not only do we both secure immediate benefits, but we also lay the groundwork for future collaborations that could unlock even more value."

4. Trade

A negotiation isn't about winning; it's about finding a balance where both parties feel satisfied. If the other party requests a price concession, consider what you might request in return. Perhaps it's expedited delivery, a larger order quantity, or additional promotional support. By framing concessions as part of a reciprocal relationship, you underscore the importance of fairness and equality in the coordination process.

5. Walk away position

Having clarity about your bottom line is essential. While negotiation requires flexibility, there's a point beyond which concessions could compromise the viability or integrity of the deal. Recognizing this threshold beforehand helps maintain your composure during discussions and allows for strategic decision-making. If negotiations reach an impasse, it's crucial to know when to pause or end the conversation gracefully, leaving the door open for future discussions.

6. Not taking it personally

It's natural to be passionate about your work and the deals you negotiate. However, it's vital to remember that business negotiations are professional exchanges, not personal confrontations. The other party's pushback or counteroffers aren't critiques of your worth but part of the natural ebb and flow of coordination. Maintaining a level-headed and objective perspective ensures that emotions don't cloud judgment or escalate tensions.


In the multifaceted world of business, price negotiation stands as one of the most vital and challenging skills to master. Negotiate prices is not just about securing the best deal; it's about crafting relationships, building trust, and understanding the nuances of human communication. As we've delved into the intricate dance of negotiation, one thing remains clear: a successful negotiator prioritizes long-term relationships over short-term gains. While the price is often at the forefront, the value delivered, and the trust established can make or break a deal. Always strive to approach each coordination with an open mind, a well-prepared strategy, and a focus on mutual respect. And remember, negotiation isn't just an art; it's a journey of continuous learning and adaptation. If you're looking to sharpen your skills or need tailored solutions for your business's unique challenges, Priceva's comprehensive suite of services is here to assist and empower you every step of the way.


How do you ask if a price is negotiable?

When inquiring about the flexibility of a price, the key is in the approach. Begin by showing genuine interest in the product or service, followed by your query. You might say, "I'm very interested in this offering. Is there any room for discussion on the price?"

Is the price negotiable?

The term “negotiating price" paints a picture of a dynamic marketplace. It signifies a seller's willingness to engage in dialogue about the cost of a product or service. This openness can be driven by various factors, from market conditions to the specific goals of a business at any given time. Sometimes sellers can afford lower price without harming their revenue.

How do you respond to 'is this price negotiable'?

Responding requires a blend of diplomacy and clarity. Instead of an outright 'yes' or 'no', consider responses that open a dialogue. For instance, "Our pricing reflects the quality and value we offer. However, we value our customers and are always willing to discuss terms that benefit both parties."

Why is it possible to negotiate price?

The fluid nature of prices in many industries stems from various reasons. For one, market competition can drive sellers to adjust prices to stay attractive to customers. Inventory clearance, especially for products with a limited shelf life or those soon to be outdated, can also lead to negotiable prices. Moreover, businesses sometimes use flexible pricing as a strategy to build and foster long-term customer relationships, understanding that a little flexibility now can lead to loyalty and repeat business in the future.

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