Mr. K is a property developer. The office building he is developing now is new and locates in city. In the current Market situation, no matter the sales or the price is neither optimistic. Mr. K is in a difficult position. He is suffering great pressure in capital turnover. Now there comes a customer wants to buy a whole floor. Mr. K wants to get hold of this customer.
Mr. K’s 4 questions.
1. Is the customer serious? How likely the deal can be done?
2. Is market situation good to sell the floor?
3. What's the range of dealing price?
4. What strategy he shall take in the negotiation.
A forecast model is established for Mr. K.
According to the model, the customer is serious and has strong intention. The customer has already done a search. The customer’s strategy is to buy the floor with a low price without any negotiation. However the model shows there are rooms for negotiation. I suggest Mr. K to prepare for this.
What's the price you are asking for? I asked. Mr. K. He replied that he wants to sell for $8,000 per square meter. The model shows the customers offer is 7,000.
Mr. K also told that his sales manager had a few rounds of discussion with the customer but the customer insisted on $7,000.
Mr. K asked, is it good for me to sell? Can the price be negotiated?
According to the model, to sell is the best choice for Mr. K. In addition to that, because of the gloomy economic situation and the property Market is heading downward.
Information in the model shows that the dealt price is related to number 4. So likely that dealt price could be $7,400. On the negotiation strategy side, I suggest Mr. K is prepare and show customer the documents that can prove the building and renovation cost of the building, to demonstrate the quality and management of the building as to strengthen customer’s confidence.
According to Mr. K's feedback, the dealt price finalized on $7,500 and the transaction was confirmed in December.
Mr. K’s 4 questions.
1. Is the customer serious? How likely the deal can be done?
2. Is market situation good to sell the floor?
3. What's the range of dealing price?
4. What strategy he shall take in the negotiation.
A forecast model is established for Mr. K.
According to the model, the customer is serious and has strong intention. The customer has already done a search. The customer’s strategy is to buy the floor with a low price without any negotiation. However the model shows there are rooms for negotiation. I suggest Mr. K to prepare for this.
What's the price you are asking for? I asked. Mr. K. He replied that he wants to sell for $8,000 per square meter. The model shows the customers offer is 7,000.
Mr. K also told that his sales manager had a few rounds of discussion with the customer but the customer insisted on $7,000.
Mr. K asked, is it good for me to sell? Can the price be negotiated?
According to the model, to sell is the best choice for Mr. K. In addition to that, because of the gloomy economic situation and the property Market is heading downward.
Information in the model shows that the dealt price is related to number 4. So likely that dealt price could be $7,400. On the negotiation strategy side, I suggest Mr. K is prepare and show customer the documents that can prove the building and renovation cost of the building, to demonstrate the quality and management of the building as to strengthen customer’s confidence.
According to Mr. K's feedback, the dealt price finalized on $7,500 and the transaction was confirmed in December.