What is your best price for xxxx?
This is a typical question during a negotiation and we need to have thought carefully about a whole range of prices.
First there is your WAP Price.
The Walk Away Price (WAP) is. This is the price where a deal isn’t possible and you literally walk away. You have two options when you present it though. If you are adamant that the price is impossible you close the doors forever. But if you say that is our best current price you leave yourself an option to reopen negotiations at a later date when the situation has changed.
Then you need to think about your BP price.
Your BP or best position price is the price you dream about. It is the best you can ever hope to obtain.
Your TP price is your target price. It is a realistic price and what you can reasonably expect to get.
Your AP price is possibly a cost rather than a price. It represents what happens if you lose the opportunity of a sale. You need to know your alternatives and the financial outcome if you don’t make a sale. That doesn’t mean you must sell at any cost; but it does mean you need to understand the outcome of every position you can be in at the end of the day.