1 Easy Negotiation Skills Technique That Will Instantly Produce Improved Negotiation Results
There is one simple negotiation skills method that can be implemented by anyone to immediately and positively influence their negotiation outcomes. This method is to always (yes always) exaggerate your expectations at the negotiation table.
Henry Kissinger, the famous American Secretary of State said: Effectiveness at the conference table depends upon overstating one's demands, a famous quote referred to in both negotiation training and sales training courses. There are several reasons why it is important for you to begin with high aspirations when you participate in negotiations:
1. Research has confirmed that high objectives will consistently do better than low aspirations. Many refer to the fact that if you want to hit the moon, you must aim for the stars. You will be astounded by the value of something so straightforward. Many of my customers are very happy when they understand that they can realise more from their deals by simply requesting more!
2. Having high aspirations will let you to 'anchor' the deal around your goals. It is much better 'anchoring' negotiations around your aspirational level rather than your minimum acceptable rate. Having high aspirations convey confidence and acts to emphasize the quality of your recommendations.
3. Perhaps most critically, having high goals will present you with the opportunity to be flexible in your negotiations. Research tells us that almost everybody equate their success at the negotiation table with their opportunity to achieve dispensations from the other side. The reality is that the other side will have no motivation to be flexible or to make allowances to you if you are not willing and able to make allowances to them.
Therefore, if you do not permit yourself some 'room to move' then you risk coming across to your counterparty as somebody who is uncompromising and unprepared to make concessions. Please note that I am NOT proposing that you open your negotiations with extreme and unworkable demands. Your opening offer must show a level that is realistic and that you are able to justify using a good, factual argument. It can be high risk using unrealistic requirements and offers as your counterpart may well decide not to deal with you at all.
I once worked with a large multi-national organisation who used a tactic of 'the price we demand is the only price we sell at'. As they are a well established and old company in America, they have become known as the type of business that has a conservative method to business and have learned to live with this approach. However, when using this approach in Poland, the company realised that they were being perceived as being uncompromising by the other side because they would never budge on their prices.
In Polish business culture this approach was not acceptable and they found it very difficult to finalise transactions in the Polish market place. The simple remedy was for them to ask for a little more than their regular prices so that they could allow clients the opportunity to negotiate with them and to gain some allowances from them. This method proved to be very successful for them.
Of course, keep in mind that 9 out of 10 times your counterparty's first offer will be an ambitious goal, not their minimum anticipated results. This means that you should never agree to any first offer that is made - you must always negotiate!
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