Now I will try to keep this below 1000 words, but negotiating is a science, and there’s a lot to say about it. Entire books have been written about it. In fact, If you find this post intriguing, I suggest you read How to Outnegotiate Anyone By Leo Reilly. It’s a very short, concise, and quick read to get the right mindset about negotiating. (You can buy a copy here on Amazon.com for less than a dollar).
Negotiating. When most people think about it, they head for the bunkers. But why? A lot of people think negotiating is impolite or that they’re chances of lowering someone’s price is low. What you need to do is change your mindset.
All business’s run on people. They require people to either use their services or buy their goods. So why do most people think they have all the power? The true mindset is, you have the money, therefore you have the power. If a business refuses to negotiate, and you walk out, they lost your sale and money; All of it. If you negotiate and succeed, then you both have a win-win. The trick is not to deadlock, where you both have a lose-lose situation. (Of course not all situations allow for negotiating, and not all employee’s have authority to negotiate their prices, so choose your battles wisely.)
Cars and Houses are most likely the two biggest negotiations you will encounter in your lifetime. Everyone hates car dealerships because the car salesman is a pro at negotiations. I have a few ways you can increase your negotiating power.
- If you HAVE to have something today, buy it tomorrow. Becoming a motivated buyer will decrease your negotiating power, because you’re more worried about obtaining the object than getting a good price for it.
- Never disclose your deadline. If the other party knows your deadline, then they know how to put pressure on a negotiation by waiting until you must have it.
- Use the ”no authority” tactic. Have you ever asked the hard questions like “how much can you take off the price”? What most seasoned car salesman will say is, ”I’m sorry, I’ll have to ask my boss if I can do that”. Car dealerships take the authority of negotiating away from the salesman. This create a two-against-one scenario. It’s harder to negotiate when you’re in indirect contact with them, especially the boss in the office. What you can do is use the no authority tactic on them. After you have negotiated with the salesman, and he thinks he has the deal locked down, tell them, ”I have to check with my spouse for approval”. Now you have a two-against-one, This weakens their negotiation power because now YOU have no authority to close until the wife (or husband) agree’s.