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”
May 2018 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 2nd May 2018
Special Event Recap: Japanese Business Etiquette Workshop with WaNavi Japan
FEW’s latest Strategic Partner WaNavi Japan hosted a workshop on Japanese Business Etiquette in the evening of April 4 at the Wesley Center in Omotesando, providing insights in Japanese culture and business culture in particular, as well as practical phrases commonly used at the workplace making communication with Japanese co-workers smoothly. Motoko Kimura, Founder and […]Published on 2nd May 2018
April 2018 Monthly Meeting Recap: Female Pioneers in Law in Japan
At FEW’s monthly meeting in April, we heard from two dynamic women working in law in Tokyo: Naoko Matsuzaki, Director, International Anti-Corruption and Global Intelligence for PwC Japan’s Forensic Services Group, and Catherine O’Connell, Founder and Principal of Catherine O’Connell Law and the first foreign female to set up as a sole legal practitioner in […]Published on 2nd May 2018
March 2018 Women’s Start-up Club Recap: Online Presence Part II- Social Media
On March 22, The FEW Women’s Start-up Club held its fourth meeting of the FEW year on the topic of “Online Presence Part 2 – Social Media,” in a hands on social media workshop style event. And hands-on it was indeed – and not only related to social media! Those who attended may remember the police invasion! […]Published on 2nd May 2018
Strategic Partner Spotlight: Lumina Learning Japan Partner, Elizabeth Handover
Lumina Learning is a global learning and development company representing the latest innovation in professional development and assessment. As a pioneer in organizational development with over 3,500 certified trainers globally, we offer services in 30 languages. Lumina Spark is our flagship psychometric tool. The key to every organization’s success is its people. This philosophy underpins our partnerships […]Published on 2nd May 2018
May 2018 Women's Start-Up Club: The Importance of Cyber Security to Entrepreneurs
The next WSC meeting will focus on Cyber Security, with Nicola Vote of McAfee shedding light on how entrepreneurs can protect their customers and also protect their reputation and business online.
May Midweek Lunch Mixer at Citron
Take a break from work and join us for delicious food and great networking at our monthly midweek lunch gathering. In May, we'll be meeting again at Parisian-style salad bar, Citron, in Gaienmae!
FEW 20th Career Strategies Seminar (CSS): AMPLIFY!
Join us on June 2 for AMPLIFY, a transformational and inspirational day-long event full of seminars, workshops and networking opportunities to help you elevate your career to new heights.
Radical Boundaries Workshop with Sarah Furuya: How to Say No to Make Way for YES
Due to its high popularity, we are offering the Radical Boundaries Workshop again. Join us for an exclusive workshop with Sarah Furuya on developing techniques to say 'no' in order to devote your time and attention to the things and people you truly love.