Cut Your Price, or Your Competitor Gets the Business
The Journal of Professional Pricing
Second Quarter 2005

Abstract:
A negotiating tactic used by some customers is to threaten to move a supplier’s business to a competitor unless price concessions are made. How real is this threat? A powerful customer’s threat to move business to a competitor can rapidly increase blood pressure, create ulcers, and initiate graying and hair loss!  Managers who have not developed a plan for their negotiations, especially evaluating the potential threats customers might employ, are likely to make profit-sapping price concessions.

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