The ZOPA is built on facts – numbers, conditions, and technical solutions. But it is also a place where attitudes mean a lot. A negotiation is very much a mental game.

As a salesperson, it is easy to think that customers have all the power – you want to sell, other suppliers want to sell, and customers can buy from whomever they want. But this is only partly true:
– It is true that we have to be on our toes to become our customers’ favorite choice. We have to take responsibility, be smart and to work hard to achieve this – this much is true.
– But customers do not have unlimited choices. They want to buy from a company that adds value to them, not just from any supplier. All buyers have had bad experiences, where they bought from someone who messed up and caused huge costs and headaches.
So in theory, it is true that customers can buy from anyone, but in reality they only want to buy from someone they trust.

Few customers will admit this, in fact, most customers will try to give you the impression that they have lots of suppliers lined up with excellent quotes. And it may be true that they have 4-5 quotes, but they will only trust one or two. If you have been invited to negotiate, you are one of those.

Most of the others will offer a lower quality than NCAB; most will therefore have lower prices. This is not surprising; they have a different strategy. Many suppliers are high volume/low tech and make PCBs for automotive or household appliances. NCAB is in the low volume/high tech segment, with higher quality and higher costs.

Of course, when negotiating, buyers will not admit that there is a difference; buyers are liars. OK, maybe that’s not fair, but buyers are usually… let’s say selective with information. They will claim that NCAB should have the same prices as the others.

Don’t let this bother you – other suppliers’ strategy is not your problem! Your job is to make sure that the customer knows how much value you can offer and that you can be trusted. This should be your focus.

So, what can you do?

First, you can prepare yourself well – both mentally and with solid facts.

Second, you can be aware of how both you and the customer communicate.

Third, you can learn how to capture the opportunities that arise during the negotiation itself.

These are the three lessons in this course – preparation, communication, and negotiation. Do these three well, and you will build strong relationships and make a good business deals, at the same time.

The ZOPA is, almost always, much bigger than you think it is.