Negotiating Strategies for the Gem Trade
What negotiating strategies work best in the gem trade? Learn how some general principles and a win-win mindset can help you succeed in price negotiations.
2 Minute Read
Let's say your counterparty is well-respected and has been in the business for a long time. Your negotiation will probably be relatively straightforward. Your strategy should be to keep it simple. Know your best offer and stick to it.
On the other hand, if your counterparty has a more… complicated reputation, then take a more careful, thoughtful approach to the negotiation.
General Principles for Formulating Negotiating Strategies
Keep these general principles in mind when you're putting together your negotiation strategy:
- Establish a strong foundation early on in the negotiation by demonstrating your knowledge of the gemstone and its broader market.
- The first offer is significant because it sets the benchmark for evaluating the offers that follow. If you're the buyer and you make the first offer, you're setting the floor price. If you're the seller and you make the first offer, you're setting the ceiling price.
- You'll never get what you don't ask for. Make your first offer aggressive.
- Concentrate on taking maximum advantage of your strengths. If you're the sole source of a gemstone your counterparty needs, that gives you strong leverage.
Look for Ways to Make Negotiations "Win-Win"
Some negotiations have clear winners and losers. However, gem negotiations...
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