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The most important skill you didn't learn in school:
Negotiation.
7 simple strategies to become a world-class negotiator:
Negotiation.
7 simple strategies to become a world-class negotiator:
ANCHORING:
Is a psychological tactic that uses "shock value" of a VERY high/low offer.
It creates a desired reference point for the subsequent (real) offer.
When the real offer is presented, it's compared to the anchor YOU set -- and appears like a bargain.
Is a psychological tactic that uses "shock value" of a VERY high/low offer.
It creates a desired reference point for the subsequent (real) offer.
When the real offer is presented, it's compared to the anchor YOU set -- and appears like a bargain.
Had an anchor not been set, the REAL offer wouldn't seem as attractive as it does.
EX:
Submitting an offer on a property for 25% below the asking price. Then providing a reasonable "concession" at 5% below the ask.
It creates perceived value for the seller.
EX:
Submitting an offer on a property for 25% below the asking price. Then providing a reasonable "concession" at 5% below the ask.
It creates perceived value for the seller.
LOSS AVERSION:
Humans place more emphasis on a loss than an equal gain.
Wins feel good, but losses HURT.
In negotiation, position a deal NOT getting done as something lost (opportunity/market share/etc.)
Their preservation instincts will help get it to the finish line.
Humans place more emphasis on a loss than an equal gain.
Wins feel good, but losses HURT.
In negotiation, position a deal NOT getting done as something lost (opportunity/market share/etc.)
Their preservation instincts will help get it to the finish line.
EX:
Use the uncertainty of the future to insinuate circumstances may change and negatively affect your counterparty.
"If interest rates rise, the value of this property may go down $200K".
You've planted the seed -- inaction may be COSTLY.
Use the uncertainty of the future to insinuate circumstances may change and negatively affect your counterparty.
"If interest rates rise, the value of this property may go down $200K".
You've planted the seed -- inaction may be COSTLY.
SPECIFICITY:
Columbia University researchers confirmed that using specific numbers leads to better outcomes in negotiation.
It's rooted in the idea of perceived knowledge.
A hyper-specific offer suggests a deep level of understanding in regards to the value of an object.
Columbia University researchers confirmed that using specific numbers leads to better outcomes in negotiation.
It's rooted in the idea of perceived knowledge.
A hyper-specific offer suggests a deep level of understanding in regards to the value of an object.
Otherwise, how would your offer be so precise?
If your offer ends in a 0 -- ditch it.
EX:
When buying your wife a new diamond ring, put forward $10,517 instead of $10,500.
Perceived as a diamond expert, the $11,000 counter offer will be saved for the next guy.
If your offer ends in a 0 -- ditch it.
EX:
When buying your wife a new diamond ring, put forward $10,517 instead of $10,500.
Perceived as a diamond expert, the $11,000 counter offer will be saved for the next guy.
RECIPROCITY:
People HATE to be in debt -- it's wired deep into our psyche.
Smart negotiators create feelings of indebtedness with small gifts/favors.
It works because the "payback" on this "debt" can be disproportionately large compared to the original gift.
People HATE to be in debt -- it's wired deep into our psyche.
Smart negotiators create feelings of indebtedness with small gifts/favors.
It works because the "payback" on this "debt" can be disproportionately large compared to the original gift.
Note that gifts must be personalized and meaningful to elicit this powerful response.
EX:
Send your counterparty their favorite expensive whiskey with a thoughtful note.
Endeared to you, it will help get that final concession that you REALLY want.
EX:
Send your counterparty their favorite expensive whiskey with a thoughtful note.
Endeared to you, it will help get that final concession that you REALLY want.
MAKE IT A WIN-WIN
Famously ruthless, even John Paul Getty said:
"you must never try to get all the money in a deal, let other fellow get some too."
If you're known for "winning" every negotiation, eventually no one will do deals with you.
Famously ruthless, even John Paul Getty said:
"you must never try to get all the money in a deal, let other fellow get some too."
If you're known for "winning" every negotiation, eventually no one will do deals with you.
Fair deals include concessions for both sides.
EX:
Create a list of 'no concession' points that would violate your principles if agreed to.
NEVER commit to a provision that defies these.
But a willingness to budge on smaller/ancillary points demonstrates 'good faith'.
EX:
Create a list of 'no concession' points that would violate your principles if agreed to.
NEVER commit to a provision that defies these.
But a willingness to budge on smaller/ancillary points demonstrates 'good faith'.
FORCED EMPATHY
Developed by FBI Negotiator Chris Voss, use questions that force the other side to understand your position.
Rather than responding to an unreasonable demand with an emotional response, simply ask:
How am I supposed to do that?
How can we both win here?
Developed by FBI Negotiator Chris Voss, use questions that force the other side to understand your position.
Rather than responding to an unreasonable demand with an emotional response, simply ask:
How am I supposed to do that?
How can we both win here?
These 'calibrated questions' reintroduce logic to your counterparty.
Realizing they can't answer with logic or data -- they'll regret being unreasonable.
This resets the conversation and the negotiation can move forward in a sensible manner with realigned boundaries.
Realizing they can't answer with logic or data -- they'll regret being unreasonable.
This resets the conversation and the negotiation can move forward in a sensible manner with realigned boundaries.
EX:
When tensions are rising it's critical to remain calm and genuine when asking a question like:
"What's the best way to resolve this?"
The goal is to get the conversation back on track.
If insincerity is sensed it will push tensions higher and likely end negotiations.
When tensions are rising it's critical to remain calm and genuine when asking a question like:
"What's the best way to resolve this?"
The goal is to get the conversation back on track.
If insincerity is sensed it will push tensions higher and likely end negotiations.
WILLINGNESS TO WALK
The cognitive bias called the 'sunk cost fallacy' has led to many bad deals.
When time/money is invested into something its VERY hard to change course.
But skilled dealmakers know the ultimate leverage is the ability to abandon a deal at ANY time.
The cognitive bias called the 'sunk cost fallacy' has led to many bad deals.
When time/money is invested into something its VERY hard to change course.
But skilled dealmakers know the ultimate leverage is the ability to abandon a deal at ANY time.
Improve your 'walkability' by seeking alternative options -- they are the antidote to poor deal-making.
More options = more power.
EX:
Don't blindly accept last minute provisions or changes because a deal is close to done.
Anything snuck in late is done so by design.
More options = more power.
EX:
Don't blindly accept last minute provisions or changes because a deal is close to done.
Anything snuck in late is done so by design.
The world is loaded with skilled dealmakers on a mission to get what they want.
To get what YOU want, you must be a world-class negotiator.
Get started here:
"Never Split the Difference" by Chris Voss "Influence" by Robert Cialdini.
To get what YOU want, you must be a world-class negotiator.
Get started here:
"Never Split the Difference" by Chris Voss "Influence" by Robert Cialdini.
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When I hit 3K subs I am going to share insights about:
- SMB/Startups
- SEO
- Audience/Earned Media
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www.getrevue.co/profile/barrettjoneill
I’ve used these strategies to:
- 10x my income
- make B2B deals
- build partnerships
- more
Negotiating skills will change your life.
- 10x my income
- make B2B deals
- build partnerships
- more
Negotiating skills will change your life.
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Sahil Bloom @SahilBloom
·
Jul 29, 2022
Great stuff