One Simple Negotiation Skills Method That Will Instantly Produce Improved Negotiation Outcomes
There is one simple negotiation skills technique that can be implemented by anyone to immediately and positively influence their negotiation results. This method is to constantly (yes always) overstate your expectations at the negotiation table.
Henry Kissinger, the famous American Secretary of State stated: 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 quite a lot of reasons why it is vital for you to start with high aspirations when you participate in negotiations:
1. Research has proven that high aspirations will regularly outdo low aspirations. Many refer to the fact that if you want to hit the moon, you should aim for the stars. You will be astounded by the value of something so simple. Many of my customers are very pleased when they realise that they can realise much more from their deals by simply asking for more!
2. Having high aspirations will let you to 'anchor' the deal around your aspirations. It is much better 'anchoring' negotiations around your aspirational level rather than your absolute minimum acceptable level. Having high aspirations convey self-assurance and helps to underline the quality of your recommendations.
3. Perhaps most critically, having high objectives will present you with the opportunity to be accommodating in your negotiations. Research tells us that most people equate their achievements at the negotiation table with their opportunity to gain dispensations from the other side. The reality is that your counterparty will have no motivation to be accommodating or to make concessions to you if you are not willing and able to grant allowances to them.
Therefore, if you do not allow yourself some 'room to move' then you risk coming across to your counterparty as somebody who is inflexible and unprepared to make allowances. Please note that I am NOT suggesting that you open your negotiations with elaborate and unworkable demands. Your opening offer should reflect a level that is realistic and that you are able to justify using a good, factual argument. It can be high risk using extreme requirements and offers as the other side may well decide not to negotiate with you at all.
I once worked with a large multi-national business who used a tactic of 'the price we ask for is the only price we sell at'. As they are a well established and old company in America, most of their clients have come to know them as the type of business that has a traditional approach to business and have learned to live with this approach. However, when using this approach in Poland, the company realised that they were being seen as being uncompromising by their counterparts because they would never budge on their prices.
In Polish business culture this approach was not acceptable and they found it very difficult to conclude transactions in the Polish market place. The simple solution was for them to ask for a little more than their standard prices so that they could allow clients the chance to negotiate with them and to gain some allowances from them. This approach 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 expected outcome. This means that you should never agree to any first proposal that is made - you should always negotiate!
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