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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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