6 Negotiating Secrets

A couple of years ago I made a promise to myself that I would learn everything there is to know about negotiating. Well, I can’t say I learned everything there is to know but I have learned some techniques that work pretty well in this area. Incorporate some of these basics into your daily routine and you’re sure to save a buck or two:

1. Never make your best offer up front. Leave a little room for their counteroffer and you'll line it up for a win-win scenario. It’s all about everyone thinking they’ve won. By allowing them to feel as if they’ve won with their counteroffer (which in fact you expected), you end up the real winner.

2. Never say yes to the first offer. Let the other side make the first offer, and even if you like it, don’t accept it. If you do, the buyer may think something is wrong with it or that he/she could’ve done better.

3. Always act reluctant at first. In fact, try to use “I’m sorry you’ll have to do better than that”, as a counter and shut up! The person who speaks first loses.

4. Act as if you have no authority to decide. I negotiate to the lowest possible point then tell them I have to run it past my client and will get back to them tomorrow. I’ll call them back and say, "boy my clients are really tough to deal with right now (good cop bad cop.) I thought they'd agree to it but they’re going to walk unless you shave another thousand off the asking price."

5. Don’t make an ultimatum if you don’t plan on sticking to it. If you want to taper down the negotiations, try to make unequal concessions. Example: They offer $100, you counter offer $50… you counter with 60, then 65, and finally 67.50.

6. Be prepared to walk away. The object is to actually obtain what you want by threatening to walk away. Because negotiations can become emotional, it’s easy to increase your walk-away power by increasing your alternatives.

For more negotiating techniques, take a look at Secrets of a Power Negotiator & Secrets of Power Persuasion for Salespeople both by Roger Dawson.