COMMENT IS THAT YOUR BEST PRICE?
As economics continue to play an integral part in every business decision, Cathy Mead discusses the art of ‘haggling’ in a highly competitive Middle East meetings market
Shopping is a favourite pastime in the Mid- dle East, particularly in the GCC. Over the years, the shopping culture in the region has evolved from the traditional souks to mega malls. However, outside the retail landscape, there remains a trader’s mentality among some corporate event planners looking to get the ‘best price’ on every venue deal. The recent economic slowdown, which
has seen the world’s most established compa- nies in belt-tightening mode, may be part of the reason for this obsession to obtain the best deal through the age-old practice of haggling. Most meeting planners today refuse to
accept initial price offerings, contributing perhaps to the growing size of procurement departments over the past decade. Knowing this, should suppliers include
a ‘haggle margin’ in their quotes? Or simply stick to the principle that the first price is the best price? The most direct answer, I believe, is yes, an initial price should be flexible enough to entertain discussions. However, the pric- ing strategy involves more than just the initial quotation. Other concerns must be taken into consideration in order to justify the deal. Aside from pegging a price tag that they
would be happy to agree with their clients, suppliers must also identify the amount they’re happy to walk away from. As always, knowledge is key and staff should be trained to offer an effective solution that best serves the interest of both buyer and supplier. In order to navigate the pitfalls of the
negotiation processes, suppliers must consider the following suggestions: • Take time to know your clients – who they are and, most importantly, how they do business. This will give you an idea of what your clients’ requirements might be and how your facilities and services can respond to those needs. Having a clear understanding of how your clients operate also makes it easier for you to gauge how best to approach the negotiation table.
• Understand your clients’ expectations - ask what you need to do to win this business.
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TAKE TIME TO KNOW YOUR CLIENTS – WHO THEY ARE AND, MOST IMPORTANTLY, HOW THEY DO BUSINESS
• Listen first – get the facts before entering into any discussion. Always be respectful and friendly. Bear in mind that, while you may not be able to close this deal, future opportunities might arise with the same customer. At the end of the day, it is all about building a relationship.
• Ensure that all members of staff are trained, confident and well-equipped with the appropriate skills and experience required to bring deals to fruition.
• Remember to highlight the value-added features of a particular offer. Make the add- ons worthwhile to the client and emphasise how cost-effective these are. Always spell it out, never assume.
• Secure a client’s commitment – the ‘if you, then we’ rule should always be applied. For example: “If you sign the contract today, then we will offer you a five percent dis- count”, or “if you pay the deposit today, then we will include certain features with our compliments, reflecting considerable sav- ings”. Both parties have to understand the offers made and the timelines, which need to be adhered to in order for the benefits to be granted.
• Put everything in writing – always recap on what has been agreed to avoid any confusion.
• Stand your ground – if the goalposts keep moving and agreements are not being met, do not be afraid to politely, but firmly, revert back to what was originally offered.
• Be confident – it may be a hard-fought bat- tle, but learn to recognise when it is time to pack up your laptop and move on to the next client. Lastly, everyone, in any industry, has a per-
ception of what they believe is a fair price for a product or experience. Whether it’s for a hotel room, conference space, meet-and-greet ser- vices or flights, changing a client’s perception of value will always be the biggest challenge. Although haggling will likely dominate
negotiation tables in the foreseeable future, it is not an altogether daunting task. An activity worth exploring, it can bring out the best in your team.
Cathy has over 20 years’ expertise in marketing, sales, events and change management. A former Director of the Board for the Meetings Industry Asso- ciation (MIA) her experience includes senior roles in Dubai at Jumeirah Raffles and Atlantis The Palm, Dubai. Following a successful career in the UK, Cathy is now MD of
i4detail.ae. Contact:
cathy@i4detail.ae
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