- Power negotiators have 3 phases
- The beginning (strong foothold)
- Middle (move the negotiation in the right direction)
- End (seal the deal in your favor)
- Ask for more than you expect to receive (also called anchoring)
- Don’t give up too much in the beginning
- End the end you will meet somewhere in the middle (ask & target price)
- Negotiation skills can be used in a broad field
- e.g. sales transaction, raise, but also real estate, company agreements
- Negotiating secrets (the examples fit the seller and buyer’s side):
- In the beginning: „The reluctant seller“ – play you are actually not that interested to sell the item
- Body and verbal language – like bluffing or acting shocked at a certain price
- The vice technique – after an initial offer, just say „you need to do better than this“ in order to automatically lower the initial offer
- Never accept the first offer – the deal might be a scam or has a certain downside (if it is really too low), you might have gotten an even lower price
- In the middle phase: use the bracketing technique!
When moving closer together during the negotiation, always move in small increments with your concessions (e.g. decrease the price of a product you offer only slightly – in order to stay close to your target price)
- Always insist on a trade-off, if somebody asks for a concession – and let the other person place an offer!
e.g. if somebody wants to borrow your car, use some space of your garage
- Invoke a higher authority – if you head into a dead-end (e.g. no trade-off at all for a company agreement), you can state or pretend: „I need to discuss this with the department head of, but without a certain concession he surly won’t agree on the deal“
- If you try everything, but the other party still insists without any acceptable concession: You can bring in a third party! (e.g. your manager for a different approach), sometimes you need to be willing to walk away (or at least show it)
- If there is a sticking point – set it aside for later & focus on the easier points! also you can change the setting or lighten the mood of the other party
- End of the negotiation: Get a small concession in the end for free!
e.g. „the car will come with a full fuel tank, right?“
- (Bluff to) withdraw your offer, if the other party is stubborn and too greedy!
(e.g. when discussing about too minor stuff or single dollars/cents)
- Sugarcoat your deal! – in case the other party gets the feeling he actually got beaten in the negotiation, and it’s not a WIN-WIN situation anymore (e.g. by offer a small give away for free in order to finally close the deal)
Even if your deal is in your favor – congratulate the other party!
Sum up: Use those gambits in order to direct every negotiation in your favor. Keep in mind: The higher the negotiation sum, the more impact the negotiation has (e.g. reducing the price of a house by 2% can easily mean 10000€).
My thoughts: Negotiation really is everywhere. For sure if you want to buy a house or get a raise, but you even need it in various jobs daily. In my case I negotiate Quality Assurance Agreements with suppliers, unconsciously I already used some of the advices of this book in my favor.