Art of negotiation

I know this guy Sammar from Pakistan and he is a pretty good programmer and I caught up with him in IM after an year or so. He said that he has started a small IT company and would be happy to do projects for me. In Integra we have an in-house team of IT people, but all are busy now and I was in need of developing some websites quickly and asked if he can help me.

He showed me a portfolio of sites which wasn't very impressive, but I was confident that with right direction they have the capability to do good work.

Then came the price negotiation part. I asked for a quote to re-vamp an exisiting website with web2.0 style layouts, style and images. It was a simple site, nothing fancy but needed a re-vamp and a face-lift. It requires a new home page design and some HTML development.

As typical with sub-continent sellers, he just could not come up with a price straightaway.

Finally he quoted US400$ and it was just about in the higher end for me, but I wanted to get on with it. I said OK, but I was doubtful if he would deliver the design/style that I wanted. So I agreed for the price, with a clause of unlimited revisions if required.

I guess, he was still thinking about quoting a lesser price. Now he came up with an increase in price if I needed unlimited revisions. He came up with so many ideas/ suggestions/points on why it should be more than the agreed price. But I was fixed up on the initial quote and did not budge. Finally he agreed for the price and we are on DEAL.

Here are my observations and tips for the sellers

1. Never be afraid to quote a price when asked (Even if it means quoting on the higher end)
   
2. Don't go back on the price and re-negotiate (i.e without yet proving a point to the buyer)
3. Dont go weak while talking the price (Especially during the unconvincing pause)
   
4. Buyer is just as nervous as the seller
   

Hope, I can use the same tips for me when I negotiate deals.

Let me see how the new website comes up, but I am fairly confident..