How to Respond to a Counter Offer on GeM & Close More Deals

The Government e-Marketplace (GeM) provides sellers with an opportunity to engage with government buyers through a transparent and competitive procurement process. One key aspect of negotiations on GeM is handling counter offers effectively. Responding strategically can help sellers close more deals while maintaining profitability. Here’s a comprehensive guide on how to handle counter offers on GeM and secure more contracts.

Understanding Counter Offers on GeM

A counter offer occurs when a buyer, instead of accepting your quoted price, proposes a different rate or terms. This gives sellers a chance to negotiate while ensuring they remain competitive.

Common Reasons for Counter Offers

The buyer seeks a lower price to fit within their budget.
The buyer wants modifications in delivery timelines or service terms.
Competing sellers have offered more attractive pricing or terms.
The buyer is testing the market to get the best possible deal.

Step-by-Step Guide to Responding to Counter Offers

Step 1: Analyze the Counter Offer Carefully

Review the proposed price and terms in detail.
Compare it with your cost structure to determine feasibility.
Check whether accepting the counter offer aligns with your profitability goals.

Step 2: Research Market Trends & Competitor Pricing

Analyze previous bids and competitors’ pricing strategies.
Determine if the counter offer aligns with market rates.
Assess your ability to remain competitive while sustaining a profit.

Step 3: Decide on Your Negotiation Approach

You can take one of the following approaches based on feasibility:

Accept the Counter Offer: If it aligns with your profitability and competitive strategy.
Provide a Revised Offer: If the proposed price is too low, suggest a counter-proposal with minor adjustments.
Decline Politely: If the offer is not viable, professionally decline while keeping the door open for future opportunities.

Step 4: Justify Your Price with Value Addition

Highlight the quality, reliability, and after-sales support of your product or service.
Emphasize any additional benefits such as faster delivery, extended warranty, or compliance with government standards.
Showcase past successful deals or testimonials to build trust.

Step 5: Use Strategic Pricing Techniques

Bundle Pricing: Offer additional services or products to justify the price.
Volume Discounts: Propose better rates for larger quantities to encourage bulk purchases.
Flexible Payment Terms: If feasible, offer flexible payment options to make the deal more attractive.

Step 6: Finalize the Deal Professionally

Once both parties agree on terms, confirm all details in writing.
Ensure compliance with GeM regulations before finalizing the agreement.
Follow up with timely delivery and excellent service to build long-term relationships with buyers.

Conclusion

Effectively responding to counter offers on GeM requires a balance of strategic pricing, negotiation skills, and value-driven selling. By carefully evaluating counter offers, justifying pricing with added value, and negotiating smartly, sellers can close more deals while ensuring sustainable profitability. A proactive and professional approach can help build strong relationships with government buyers and secure long-term business opportunities.