There are times when entrepreneurs from small or mid-sized firms propose very low offers in the hope of receiving large orders at higher prices in the future. Too often, promises for future business opportunities remain just that promises. Negotiating deals at low prices in the hope of recovering lost profits from future orders is a dangerous strategy. Wise negotiators avoid this strategy because of the high risks involved. A rejection should be regarded as the beginning of the negotiations, not the time to make concessions or take a defensive attitude.
Experienced negotiators expect objections.
They turn objections into opportunities, without getting into concessions. They consider such reactions as an ideal opportunity to start an information exchange through questioning. Before justifying your initial proposal, ask the other side what part of your offer they are willing to accept. This information allows you to initiate discussions in a positive manner and to reintroduce your proposal, stressing the features considered best by the other side. By not ceding to pressure, you gain a substantial psychological advantage in the early round of discussions.