Advice Needed: Negotiating with a big university.
Hi! I've been working on a product since last summer and am trying to approach different potential users to test it out. After some emails last fall, I was able to get a meeting with a university. Since then, I have had multiple meetings with them, understanding their point of view and refining one version of the product according to their liking. I have another meeting with them this week to talk about how much it would cost them to run this pilot.
This is my first time doing anything like this and I would love some advice around negotiating. I have a number in mind that is more than what I actually need to run just this project, but all the money I do get I plan on putting back into the product so that I can bolster it and start getting it into the hands of more people.
Are there factors I am not considering? Should I ask for an even higher amount so that we can settle on the amount that I have planned in the first place? Would I have to give them a breakdown of how I would be using the money? I would really appreciate any advice regarding this. Thank you in advance!
Try to predict their objections and possible reasons to negotiate down your offer. Dont have too much fear of their objections, If they are interested you will find a solution together.
Have two offers prepared which they can choose between (your original estimate and what they get for it + a higher price offer with additional premium benefits for them)
Sum Up what they get before telling the price. If you say your price be confident and dont say a word afterwards. Keep the silence If necessary. Its their Turn. Avoid justifying your price at any cost. Its totally valid and worth the money.
If they object the "expensive" price just ask why they think its too expensive, what exactly. Understand it. Dont offer a Discount. Offer to reduce the feature set or support / etc.
First off, thank you so much for the response!
Secondly, do I really not have to give them a reason why I'm charging what I am? What if they ask me why it costs so much? Do I just repeat all the features they would be getting or should I tell them how I would be using the money?
Depends, I would tell them - If they have an immideate benefit from how you are using it. But avoid having a discussion like this feature takes x hours...
You're selling a single value / benefit in form of a product. Not dev services, right?
But yes rather than allowing a detailed discussion on the price and why it is justified I would try to find out what the reason behind this question is. It can actually be price (because they just have x budget left) but often its something completely different like trust, missing benefits, other objections, etc.