The purpose of preparation is to expand the ZOPA so that you are ready to grab all opportunities, and to boost your confidence so you can stand strong under pressure.

What you need is a briefcase full of alternatives that will either make the customer willing to pay more, or lower NCABs costs.

The idea is to prepare several different alternatives, and to know what each of them would be worth to NCAB. This way, you can make quick decisions in the meeting, and if your customer needs the cost to come down, you will know what to ask in return. As in “That price is OK if we can deliver in September.” Never give anything away without asking something in return.
If you first say $20 and then back down to $18, the customer will immediately forget that you ever said $20. Those two dollars are gone, and the customer won’t even be grateful. Get something in return.

Alternatives also make it easier for customers to back down. If the buyer’s red line is at $1.40, and she has said “I won’t pay more than $1,00” (remember; buyers are selective with information), it can be mentally hard to suddenly agree to $1.20. But if you offer something on top, like a better lead-time, it’s easier for her to agree.

There are SO many solutions, other than just giving away the price. And the best thing is when it feels like a win for the customer, and you make it profitable for you too. Win/win.

Finally, even if it’s not all about price, you need to know where your red line is, and never step over it. Know it, but don’t focus on it; it’s the customer’s red line that should be your focus.

So, the next step is to prepare for what the customer might want.