According to research, consumers make purchase decisions based on the relationship between the price of the product or service they are considering and how valuable they believe it to be.
Negotiating is a tool that is used to create the proper relationship between price and value. But if you must negotiate to make a deal, you’re losing money.
Because you’re lowing the price — to create the desired price-value relationship.
That’s why it’s important to build value before negotiating. What that means is that you need to build value in:
- Your dealership
- Your product and
- In the manufacturer.