It's 2pm on day two of the fair. Someone at your stand says these exact words: "I'm interested, but your price is too high. Can you do better?"
What do you do? This is the moment that separates good negotiations from bad ones.
The three options (and why two are wrong)
❌ Option 1: Panic and drop the price
"Okay, I'll give you 20% off."
Problem: You just told them your original price was wrong. They'll keep pushing. You've set a precedent that price is negotiable without reason.
❌ Option 2: Defend your price stubbornly
"No. That's the price. Take it or leave it."
Problem: You've shut down the conversation. They leave. No deal is possible now.
✓ Option 3: Ask why and offer something in exchange
"I understand price is a factor. Can I ask — what's making the price a barrier? Is it the volume you're ordering, or something else? Because we might be able to work together differently."
What works: You stay calm. You ask a question. You open a door to solutions other than "lower price."
What makes negotiation work?
Think before you click: Why do negotiations fail?
Negotiations fail when:
Someone feels disrespected or unheard
Someone sees it as a fight instead of a problem to solve together
There's only one thing on the table (price), so when you disagree, there's nowhere to go
One person is desperate and the other knows it
Negotiations work when:
Both people feel heard and respected
You approach it as "how do we both win here?"
There are multiple things you can adjust (price, volume, payment terms, delivery time, exclusivity, etc.)
Each person has options and isn't desperate
Think about a negotiation you've had (could be buying something, could be anything). What made it go well or badly? Say it out loud — what was the one thing that changed the conversation?
Today's goal
You'll learn the PREP framework: a four-step approach that keeps you confident and protects your margins while staying collaborative. Then you'll practice on real scenarios from trade fairs.
PREP: Your negotiation anchor
When someone says "your price is too high" or asks for something you're not sure about, PREP keeps you focused and calm.
The four steps
P = Position
What do you want? Know this before negotiation starts. "I want to sell 500 units at $45 per unit." That's your position.
R = Reason
Why? Not the reasons that sound good. The real reasons. "At 500 units, I can get bulk supplier rates and still make margin." That's your reason.
E = Evidence
What's your proof? Numbers, examples, client testimonials. "Three clients ordered exactly this volume last year." That's evidence.
P = Proposal
What do you suggest? Your opening offer. Not your final offer. "Here's what I suggest: 500 units at $45. First shipment in six weeks."
Example: The visitor wants a lower price
Visitor says: "Your competitor offers 15% cheaper. Can you match that?"
You follow PREP: Position: "I want $45 per unit." Reason: "That price includes premium quality control, 24-hour support, and six-month warranty. The competitor offers none of that." Evidence: "Last year, a company switched to the cheaper option and had 12% defect rate. With us, their defect rate is 2%." Proposal: "If you order 500 units, I can offer $42 per unit — not to match them, but because volume lets me reduce my costs. But you're not paying for commodity. You're paying for reliability."
Key phrase patterns
Use these when negotiation starts:
Acknowledge their concern (Reason):
"I understand your concern about price." / "I hear that cost is important."
Explain YOUR position (Reason):
"The reason for our pricing is..." / "Here's why we're at this price point..."
Offer something different (Proposal):
"What I can offer is..." / "Here's what we could do instead..." / "If you [do something], we could [offer something]."
Conditional move:
"If you order [X], we could offer [Y]." / "If you can commit to [timeline], I can improve [price/term]."
Compromise language:
"Let me suggest a compromise..." / "What if we approached it this way..."
The critical moment
When you say NO, say it with respect.
Weak NO: "I can't do that." (Sounds like you don't have options.)
Strong NO: "I appreciate the ask. Here's why I can't match that: [Reason]. What I CAN do is [Alternative]." (Shows you've thought it through and you have a different path forward.)
Take a scenario from your business: Someone asks for something you can't give (lower price, bigger order, faster delivery). Using PREP, how would you respond? Practice out loud. What's your position? Your reason? Your evidence? Your proposal?
The tools you can trade
When price is the issue, don't just fight on price. You have many other tools. Trade one for another.
What can you adjust?
Price
❌ Don't do this alone. Only adjust price if something else changes.
Volume
If they buy MORE, you can sell for LESS. "500 units at $45. 1,000 units at $42." This works for you: higher margins from volume.
Payment terms
If they pay upfront, you can offer a discount. "If you pay on order, I can offer 5% off. If you want 30-day terms, the price is full."
Delivery timeline
Rush orders cost more. "Standard delivery is 8 weeks at $45. I can do 4 weeks at $48."
Customization
Standard product is cheaper. Custom colors, sizes, packaging cost more. "Standard version: $45. Custom packaging: $48."
Support level
Basic support is cheaper. Premium support (training, dedicated contact, regular reviews) costs more.
Exclusivity
If they want exclusivity (you won't sell to their competitors), that's valuable. "Exclusive territory: $48. Non-exclusive: $45."
Relationship
Long-term contracts are more valuable than one-off orders. "Annual commitment: 5% discount."
The principle: Exchange, don't surrender
Never lower price for nothing.
If they ask for a discount, ask: "What would you be willing to do differently to make that work?"
Bad negotiator:
Visitor: "Can you do $40 instead of $45?"
You: "Okay, $40." ← You just lost $5/unit for nothing.
Good negotiator:
Visitor: "Can you do $40 instead of $45?"
You: "I appreciate that. To get to $40, I'd need something in exchange. What if you committed to 1,000 units instead of 500? Then I can offer $40." ← You get volume in exchange for price.
Even better negotiator:
Visitor: "Can you do $40 instead of $45?"
You: "I can't get to $40 at 500 units — that doesn't work for my business. But let's solve this: What's the real issue? Is it budget? Timeline? Something else?" ← You ask to understand, then solve the real problem.
Conditional offers: The power structure
Use IF/THEN language. It keeps you in control.
Scenario 1: Minimum order is too high
They say: "I can only order 200 units, not 500."
You offer: "If you can commit to 200 units per month for a year (total 2,400), I can offer the bulk price of $42."
What this does: You get the volume you need, spread over time. They get the price they want.
Scenario 2: Delivery is too slow
They say: "I need this in 4 weeks, not 8."
You offer: "If you order before Friday and pay upfront, I can expedite and hit 5 weeks. But it costs an extra $3 per unit for rush production."
What this does: You solve their timeline problem without eating the cost.
Scenario 3: Price is too high
They say: "Your competitor is $8 cheaper per unit."
You offer: "If you'll let me visit your operation to understand exactly what you need, maybe we can find the right solution. It might not be lower price — it might be the right specification, delivered on time, with support. Can we have that conversation?"
What this does: You move away from pure price competition and toward value competition.
Pick one "tool" from the list (volume, payment terms, delivery, customization, support, exclusivity). Think of a real scenario where you could offer that instead of lowering price. Say your conditional offer out loud: "If you [do X], I can [offer Y]."
Four scenarios from trade fairs
These happen. A lot. Practice responding to each one using PREP.
Scenario 1: Price objection
It's too expensive. Your competitor in Germany quotes €40. You're at €48.
?
Your turn. Respond in 90 seconds.
Use PREP: Acknowledge their concern. Explain your reason. Give evidence. Make a proposal.
1:30
Record your response. Then listen. Did you:
1. Acknowledge their concern? (don't dismiss it)
2. Explain why you're at this price? (not "because I can" — real reasons)
3. Offer something different? (not just "no")
Example strong response
"I understand €40 looks better on paper. Here's why we're at €48: Our quality is certified to ISO standard, we offer local tech support in your language, and we have a 24-month warranty. That costs more. The competitor is cheaper because they don't have those. That works for some customers. For others, the headache of quality issues or support in English is worse than the €8 difference. What's most important to you — lowest price, or having someone you can call in your timezone?"
Scenario 2: Minimum order too high
I'm interested, but you're asking for a 500-unit minimum order. I can only take 150 first time.
?
Your turn. Respond in 90 seconds.
Can you adjust the minimum? What would make it work for you?
1:30
Example strong response
"I hear you. The 500-unit minimum is because of production setup costs — I build the molds and change the line for your order. Here's what I can do: You order 150 now at the full per-unit price of €48. If you reorder within 12 months, any additional orders come at €42 because the setup is already done. Does that work? It lets you test with us at a smaller scale, and I get to prove the quality."
Scenario 3: Delivery is too slow
We need this in four weeks. You're offering eight weeks.
?
Your turn. Respond in 90 seconds.
Can you speed it up? What would that cost them?
1:30
Example strong response
"Four weeks is tight, but possible. Here's the trade-off: Standard production is 8 weeks at €48 per unit. If you need 4 weeks, I move you to the front of the queue and add weekend shifts. That costs me an extra €4 in labor. So it's €52 per unit. Plus, I'll need 50% payment upfront to commit the resources. Can you work with that timeline and those terms?"
Scenario 4: Wants exclusivity (lower price in exchange)
If I take all my business to you — and you promise not to sell to my competitors — can you give me 20% discount?
?
Your turn. Respond in 90 seconds.
Exclusivity is valuable. But is 20% the right price? Ask questions first.
1:30
Example strong response
"I like the idea of an exclusive partnership. Before I can offer 20%, I need to understand: What volume are we talking about? How long would this commitment be — one year? Three years? And when you say 'all your business,' what does that look like in units per month? Exclusivity is valuable to me, but only if the volume justifies it. Let's do the math together."
Write the follow-up email
The negotiation happened at the fair. You said yes, you said no, you made an offer. Now they're back at the office. You need to follow up in writing.
Why write it down?
What a good follow-up email does
Confirms exactly what you agreed to (prevents "I thought you said...")
Shows you were listening (builds trust)
Puts pressure on them in a friendly way (they have to respond if something's wrong)
Documents the conversation (protects you if there's a dispute later)
Keeps the door open (gives them a next step to say yes to)
The structure
1. Reference the conversation (personalize it)
"It was great talking with you at the fair on Tuesday. I really appreciated your interest in..."
2. Confirm what you understood
"Based on our conversation, here's what I understood: You're looking for 300 units with delivery in June, and you have budget constraints around €40 per unit."
3. Recap your offer (be specific)
"Here's what we discussed: 300 units at €44 per unit (€13,200 total), with delivery in late June. Payment 50% upfront, 50% on delivery."
4. Explain the trade-off (why this works)
"The €44 price point works because it's a larger order for us, which reduces our production setup costs. The June delivery is possible because we have capacity that month."
5. Next step (make it easy to say yes)
"If this still works for you, please reply by Friday so we can reserve production slot. If you have questions or want to adjust anything, let me know."
6. Keep it warm
"Looking forward to working together."
Full example
Subject: Following up — Order for 300 units, June delivery
Dear Sarah,
Thank you for the great conversation at the trade fair on Tuesday. It was clear you understand quality, and you're building something interesting.
Based on what we discussed, I wanted to put together exactly what we talked about so nothing gets lost in the noise of the fair:
Order: 300 units of our Premium Series Price: €44 per unit (€13,200 total) Delivery: Late June 2026 Payment terms: 50% upfront to confirm, 50% one week before delivery What's included: Our standard 24-month warranty and technical support
The €44 price works for us because at 300+ units, we can optimize our production and reduce setup costs. The June timeline is solid — we have good capacity that month.
If this looks correct, please reply by Friday so we can officially reserve your slot. If anything needs to change or you want to discuss further, just let me know.
Really looking forward to this.
Best regards,
[Your name]
Now draft your follow-up
Think of a negotiation from a recent fair or meeting. Write the follow-up email. Make it clear. Make it specific. Make it easy to say yes.
Check your email against these rules
Do you reference the actual conversation? (personalize, don't template)
Did you write down exactly what you understood? (avoid "as discussed")
Is the offer completely clear? (numbers, dates, conditions, terms)
Did you explain why this works for you? (builds credibility)
Is there a clear next step? (what do you want them to do?)
Is the tone warm, not pushy?
If yes to all six, send it.
What have we built today?
The PREP framework
When someone negotiates, you stay calm by knowing:
Position: What you want (your target)
Reason: Why (the real reason, not the polite reason)
Evidence: What's your proof? (clients, numbers, results)
Proposal: What you suggest to open the conversation
Key principle: Never lower price for nothing. Always exchange — volume for price, payment for terms, commitment for discount.
The critical moment: When you say NO, say it with respect and offer an alternative. "I can't do X. Here's what I CAN do..."
Follow-up email: Confirm what you understood. Write down the exact offer. Explain why it works. Give them a clear next step.
After this lesson, you can:
✓ Stay calm when someone asks for a discount
✓ Use PREP to structure your response
✓ Say NO respectfully while offering alternatives
✓ Make conditional offers that protect your margins
✓ Trade one thing for another (not just lower price)
✓ Write a follow-up email that confirms the deal
✓ Navigate four common trade fair negotiation scenarios
One final thought
Before the next fair, decide your PREP in advance for common scenarios: "If someone asks for X discount, my position is Y." Write these down. When it happens at the fair, you won't be caught off guard. You'll have an answer ready.
Good negotiators protect margins. Great negotiators keep customers and build relationships. Be great.