You Can Negotiate Anything
- Three Crucial Elements
Information
Time
Power
The other side seems to know more about you and your needs than you know about them & their needs
The other side doesn't seem to be under the same kind of pressure, time constraints & deadlines
The other side always seems to have more power & authority than you think you have
- What is Negotiation
Your ability to negotiate determines whether you can or can't influence the environment
Negotiation is analyzing information, time & power to affect behaviour/ meet the needs/ti make things happen
Negotiation is the use of information & power to affect behaviour within a 'web of tension'
- Almost Everything is Negotiable
'One-Price Store' -- Why is negotiation difficult?
Because of the imbalance in Information, Apparent time pressure & perceived Power
Do or Do Not Negotiate:
- Am I comfortable negotiating in this situation?
- Will negotiation meet my needs?
- Is the energy & time worth the benefits from this encounter?
- Getting your feet wet
(Generating competition)
Do not regard yourself as someone who wants to buy refrigerator; Regard yourself as someone who wants to SELL MONEY
(Satisfying Needs)
Express your dissatisfaction with the product
Comments like these indicate the salesman that your needs aren't fully met; therefore his needs shouldn't be totally met
- Only 32 colours?
- Remove the icedoor?
(The Ultimatum)
Start with Ultimatum and start moving out. The salesman will not follow you because he has not invested in the relationship with you.
The key to making an ultimatum is always the extent to which other side makes an investment of time & energy
(Nibble)
What colour tie are you throwing in free?
The success of a nibble is in direct proportion to the time invested. No time investment, no dice. d
("We don't understand")
'You lost me sometime ago'
'We don't understand'
'Can you do the whole thing again?'
Get the Catbird seat
Don't be too quick to 'understand'
(Making the ultimatum stick) 4 steps
Frosting the cake: An ultimatum must come at the end of a negotiation, never at the beginning. You can't frost a cake until you bake it
Soft & Palatable: Words used must never belittle or offend other side. Example to use: "I understand your position, but this is all I've got. Help me"
A recipe that can't be tampered with: The visual display of "official budget" with black marks on white paper does the trick. Or "It would be against our company policy"
Selection from limited menu: Never state 'Its this or nothing'. Rather, structure the situation to allow them to make a choice obviously more desirable to them.