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layout: post | ||
title: "On Negotiation" | ||
description: "" | ||
category: | ||
tags: [pm] | ||
--- | ||
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### Overcome fear and embarressment | ||
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* It is just a game. Being stared at is part of it. | ||
* Avoid reluctant yes or unhelpful no. Looking for a third option, e.g., quote a higher price, different time | ||
* As long as parties don't walk out. Negotiation wouldn't cost the deal. | ||
* Crumbling is always an opinion, just a game that may not work out sometimes | ||
* Just a game to them. Doesn't affect how they will like you. Does not make you like them more, if they slash the price. | ||
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### Time to negotiate | ||
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* They are keen to sell it, and making you an easy offer, e.g., offer at the first turn | ||
* You have a complaint. Turn that into negotiation, since you are in a strong position. | ||
* Dirty hotel room -> move to a better room | ||
* dead mouse -> rejected a year worth of bread. What can we do to make you happy? Asked for something else. | ||
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### Planning - most important part of negotitation | ||
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* Set your walk away point. Walk away even if it is super close. When you set a limit, you mean it. Walking away empowers you, and let the other side know you are able to. | ||
* Your initial walkaway point may not be the actual one | ||
* Opening offer: external factors, e.g., market, going rates. Walkaway point: internal, personal, value to you. | ||
* Decide the walkaway point before checking the going rates | ||
* list tradable values before the talk starts. Use them to trade and get from the starting position to the final position | ||
* They may not afford to walk away too even when you are not able to either. See who will crumble first. | ||
* Opening offers - prefer face to face | ||
* Don't open first. Ask for a budget. Pass it back if the other side don't | ||
* Less talking, more questions. | ||
* What they have been doing. | ||
* What other options | ||
* Open below best possible when buying, and avoe when selling. Find reasons to justify the low opening offers | ||
* even a 10% chance is worth a try | ||
* but blame on yourself or they may be upset | ||
* Don't open with round number. Start with 7 and 4. Sounds like you thought about that | ||
* Most likely rounding down | ||
* You must do a flinch. Look into their eyes, do they flinch? If they don't, don't move from your offer. This is different from poker | ||
* Ambitious, outrageous opening offer is fine later | ||
* Show trade instead of coming down unilaterally, appearing dishonest | ||
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### Tactics | ||
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* the vice: buyer says "you have to do better than that" | ||
* "still needs to get better than that | ||
* Seller should trade, don't come down unilaterally. Ask buyers how much better exactly, and then flich | ||
* Salami: ask a lot of different things on many different fronts | ||
* if being salamied | ||
* Ask things back | ||
* if you want this, I want something else or more price | ||
* don't afraid to start again as a last resort | ||
* Knocking the product: "not the color i liked, i would get it if it is cheaper", dents | ||
* Counter: That is why the price is so reasonable/already priced-in | ||
* Reluctant buyer: "would prefer something else, but" | ||
* Reluctant seller, less common. "I suppose I could fit your request" | ||
* Counter: most likely a game | ||
* Hardball | ||
* analytical: rush them. Panic them | ||
* controller: make quick decisions on facts | ||
* Given them facts but don't give enough time. Bore + rush | ||
* amiable: bully them | ||
* Push them. "Obviously you are gonna buy them" | ||
* "I will help you do it" | ||
* enthusiast: feelings. Bore them with details | ||
* Have to go back to the process | ||
* Discount should be on the invoice to set expectations baseline | ||
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### Trading | ||
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* Win/win instead of win/lose. Neogitate on price directly is zero sum | ||
* Either person can propose a win/win trade | ||
* Use "if you.., then I/we...." often. Much stronger than "how about giving you a cheaper price". | ||
* Hide what is valuable. Don't make a big deal of that or they will ask you to pay for that. | ||
* Things you are not bothered about, imply they are important and ready to trade it for something else. | ||
* Moving in small steps. People often not doing this enough | ||
* Implying you are near the limit | ||
* Most companies operate on a 10% profit margin | ||
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### Closing | ||
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* "Final offer" avoid to use it. | ||
* Gives up too much information | ||
* Neither side can move | ||
* Don't split the difference. It is the the last feeble attempt before giving up. | ||
* Counter | ||
* I really can't, it gotta be | ||
* fallback if they are walking away: can split the difference of difference in your favor | ||
* In the middle, are there any extras I need to know? Don't ask this after agreeing on prices | ||
* Go for a counter nibble | ||
* Nibble is dishonest and should not let them get away with it | ||
* Similar counter for quivering pen | ||
* | ||
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#### References | ||
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* Successful Negotiation: Master Your Negotiating Skills | ||
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