On March 29, 2017, the FEW Women’s Start-Up Club covered two crucial topics to successfully grow your business: Pricing and Negotiation. Vanessa Oshima, General Manager, Women’s Category, at Nike Japan, first led an engaging discussion on identifying and developing strategies for successful price setting. Tanja Bach, FEW Women’s Start-Up Club Committee Member, then continued the discussion with insights on successful negotiation strategies and best practices.
Pricing – Vanessa Oshima
“Pricing is not about price – it is about worth or value.”
We learned the ins-and out of pricing from Vanessa Oshima. Peppered with personal anecdotes and practical examples, she brought to life the art of pricing. We discussed what affects our pricing decisions as customers. Then, we looked at how we get insights around how to set price, beginning by using the Van Westerndorp pricing method and looked at “premiumziation” – what makes you pay more.
What affects your pricing decision:
Ask your customer/your audience: (Van Westerndorp)
- At what price would you begin to think product is too expensive to consider?
- At what price would you begin to think product is so inexpensive that you would question the quality and not consider it?
- At what price would you begin to think product is getting expensive, but you stillmight consider it?
- At what price would you think product is a bargain – a great buy for the money
Premiumization – what makes you pay more
- Scarcity (time, units, locations)
- Personalization and customization
- Efficacy (health, beauty, lighter, whiter, etc.)
- Purity or Complexity
- Sensory confirmation
- Designed for (adults)
Negotiation – Tanja Bach
“Failing to prepare, is preparing to fail!” – Benjamin Franklin
All of these learnings connect and relate to the next step – negotiation. Tanja Bach briefly introduced the importance of preparing for any negotiation and how information is power. Just like with pricing, it pays to do your research. We often are too focused on us, what we want. Just as with pricing, it is vital to know what the buyer wants as well. Asking for favors is a very short-term selling strategy. Adding value, by stating “what is in it for them” (not you!), will help you form long-term business relationships.
4 Simple Questions to prepare for a negotiation:
- What do you want to achieve from the negotiation?
- What offers or positions are acceptable you?
- Is there anything you need to be aware of? (Issues)
- What would the answers to the above be for your negotiation party?
4 Positions (Source: “Win, Win: How to get a winning result from persuasive negotiations” by Derek Arden)
- BP= Best position: What do you want in an ideal world?
- TP = Target position: What is a softer, more realistic option?
- WAP= Walk away position: When do you leave the table? What is the cost if you walk away?
- ZOPA= Zone of Potential Agreement
- AP= Alternative position: What will you do instead (if all three above do not work?) What will you do with your unused resources?
Information is POWER. The more information you have, the more options you can create. Do your research! If nothing else, have the following answers ready BEFORE you enter a negotiation:
- What are your unique selling points? What makes you special? The key unique selling point is YOU, the way you serve, look after and service the client.
- What are your negotiation variables? (example: information, advice, pricing schemes, services, etc.)
Negotiation “How To Tips”
- Know your audience (again, information is power)
- Get them nodding (one way is to acknowledge their situation)
- Use “AND” not “but” (example of 2 and 3 combo: Yes it is a difficult market right now AND do you think that you need to create new market needs?…..)
- Be aware of your limit (remember the Walk Away Position and don’t be afraid to use it).
* * *
May 26-28: Start-up weekend Tokyo for Women – get a kick-start to set up and run your business! For more info and to sign up, please click here.
May 31 WSC Meeting: “Digital Nomads”
Q&A with Jackie F. Steele and Megumi Ishimoto
Leading up to our upcoming monthly meeting on ‘Celebrating Women as Change Agents in Post-Disaster Tohoku,’ we’re featuring a Q&A with Jackie F. Steele, a political scientist at the University of Tokyo, and Megumi Ishimoto, Executive Director of NPO Women’s Eye. The Q&A is modeled on the Proust Questionnaire, designed to reveal insights into the respondent’s personality. Join us […]Published on 14th March 2018
March Strategic Partner Member Offers and Other News
Check out the latest member offers and opportunities from our Strategic Partners here! Our Strategic Partners are committed to bringing the best services and products to FEW members. And go to our Strategic Partners page to learn more about all of FEW’s Strategic Partners, who not only support FEW’s activities but also provide professional and personal services […]Published on 1st March 2018
February Meeting Recap: Survivor – How to Overcome Adversity
You never know where life is going to take you. That was the message from our February guest speaker, Maxine Van-Cliffe Arakawa, who has had a decades-long career as a fashion stylist, make-up artist, and fashion show director in New York and Japan. She shared her personal experiences dealing with bi-polar disorder and gave her candid advice to […]Published on 1st March 2018
March Community Services Feature: Five Tokyo-Based Organizations That Fight For or Empower Women
In honor of March’s International Women’s Day, we’d like to present to our FEW community a list of five organizations that have established themselves as organizations who fight for or empower women as well as a list of five events that you can attend to show your support for this year’s theme of #PressFor Progress. […]Published on 28th February 2018
How I Got Here: Johanna Nousiainen
I first came to Japan as a study abroad exchange student. That year changed my life, even though at first I didn’t know it would. I was supposed to become a journalist in Finland, since that was what I loved to do – looking for information, interviewing people, writing articles about unique encounters you have. […]Published on 28th February 2018
FEW Spring Hanami Picnic & Party
Join FEW on Sunday, April 1, at Shinjuku Gyoen for a special family-friendly spring picnic celebration under the cherry blossom trees and enjoy connecting with friends, old and new!