Become A Master Negotiator

Summary: Sticking to minor concessions in the opening rounds of a negotiation.

Here’s a good rule of thumb: If you are going to concede in the opening rounds of a negotiation, Concede Small.

Example

You are selling your house and your asking price is $550,000. You receive an offer of $500,000. Instead of countering with $525,000 in the first round, which is what most people would do, you counter with $548,250. This small concession is a better starting point for this negotiation.

Although negotiating this way takes time, conceding in small increments makes it more likely that you will end up with $540,000. If you immediately counter the buyer’s offer at $525,000, he will probably counter with $512,500, and you will end up getting less money for your house.

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Summary: Using an open-ended question to get more expansive or revealing information from a counterpart.

Open-ended questions almost always start with who, what, where, when, how, or why. They play a strong role in negotiations as techniques for gaining as much accurate information as possible.

Example

Carrie is in the market for a used car. She wants to buy one from someone who has completed the scheduled maintenance. More specifically, she wants to buy a car from someone who has changed the oil every three thousand miles. She thinks about asking a closed-ended question like “Have you changed the oil every three thousand miles?” But since the owner would know the answer Carrie wants to hear, she is afraid he would answer “yes” even if the real answer was, “Yes, when the car was new, but over the last year, the oil has never been changed.” She decides to use an open-ended question to gain more complete information, and says, “Tell me what type of maintenance has been done on this car.” This request has to be answered with details instead of a simple “yes” or “no.”

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Summary: Using a restrictive question to get a direct answer or specific bit of information from a counterpart.

Anytime you are trying to win a concession or gain a deal point in a negotiation, Asking a Closed-Ended Question is a good idea. Closed-ended questions are effective because they are direct and to the point. In contrast, they are not good questions to ask when you are striving to build a relationship or stimulate discussion.

Example

An employee in charge of office supplies asks a saleswoman, “If I can obtain budget approval to purchase two SMART Boards, which would normally incur a combined cost of $4,000, can you get the price with tax under $3,750?”

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Summary: Citing the opinion of an authority to gain clout.

One of the more powerful tactics to utilize when presenting information in a negotiation is to cite the opinion of an expert.

Example

A man is selling his automobile for $12,000. A woman tells him that she will buy the car for $11,500 if she can take it to her mechanic to make sure there are no major problems needing repair. The prospective buyer takes the car to her mechanic who prepares a computerized printout outlining $1,500 worth of repairs. The buyer returns to the seller with the computerized report of needed repairs and a revised offer to purchase the car for $10,000.

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Summary: Pushing a counterpart to provide his best offer by implying that the offer “on the table” is unsatisfactory.

A great way to practice your negotiation skills is to simply get in the habit of asking salespeople, “Is That your Best Offer?” You would be amazed how many times they will lower their price or throw in an extra benefit in response to this simple question.

Example

A buyer is purchasing a new laptop and asks the salesperson, “Is $499 your best price?” The computer salesperson replies, “This laptop is going on sale for $450 in a week. Let me see if I can get my manager to approve the sale price for you today.” Simply by asking, the buyer saves forty-nine dollars.

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