Creative Solutions to Global Business Negotiations, Third Edition

CHAPTER 7

Price Negotiations

Price is what you pay, value is what you get.

—Warren Buffett

Firms entering new markets, particularly small- and medium-sized firms, often face problems in initial negotiations with importers, agents, and buyers in the target markets. These difficulties generally center on pricing questions, particularly the fact that their prices may be too high. Although price is only one of many issues that must be discussed during business negotiations, too frequently it tends to influence the entire negotiation process. New exporters may be inclined to compromise on price at the beginning of the discussions, thereby bypassing other negotiating strengths they may have, such as the product’s benefits, the firm’s business experience, ...