Empathy Principle 8 – Bargain Hard

Bargaining is the portion that elicits the most anxiety and aggression, thus its important to focus on developing the skill.

NOTE: Any response that isn't a complete rejection means you have the upper hand.

PRINCIPLE  1:

Identify your natural negotiation style

Being clear on your strengths and weaknesses in negotiating can give you a great advantage.

Chris identified 3 core styles. We all have a blend and can bounce between styles, but we each have one that is predominant, which one are you?

3 CORE NEGOTIATION STYLES:

Assertives

• Time is money mentality
• Getting it done vs. getting it perfect
• Respect is very important. It is very important for them to feel like they are being heard, and often don't have the ability to listen to you, until they've felt heard.
• They tend to be very direct and candid without concern for the repercussions
• Silence is an opportunity to talk more
• "That's right" is the most important phrase to get from them
• Oblivious of expectation of owing something
• Very sensitive to receiving something in return once they've given

Accommodators

• Enjoy the time spent building the relationship
• As long as communication is flowing, they are happy
• They tend to be optimistic, peace seeking, sociable, and poor time managers
• Uncovering their objections can be hard based on their agreeable nature
• When they are silent, if often means anger
• Most apt to offer something they can't deliver

Analysts

• Methodical
• They focus on minimizing mistakes
• Avoid showing emotion
• Can come off distant and cold
• Sensitive to reciprocity
• Often need silence to contemplate
• Asking too many questions too soon raises their defenses
• They avoid answering questions quickly
• Avoid immediate counter proposals
• Warn them of issues early

NOTE: Chris's advice for the analyst type is to smile at appropriate times during the negotiation to give off the perception of warmth.

NOTE: Chris offers a free resource to identifying your type here: http://info.blackswanltd.com/3-types

PRINCIPLE 2:

Identify the other party negotiating style

Chris says the biggest barrier to identifying the other party's style is our belief that they are like us. Avoid that trap.

PRINCIPLE 3:

Avoid being trapped in a compromise.

Let the other party anchor a price first.

Activate "how" and "what" questions.

If they insist on returning to price ask:

• "let's put price aside and talk about what would make this a good deal"
• "what else would you be able to offer to make this a good price for me?"

Avoid naming a price, instead allude to something comparable, but at a drastically higher; yet still reasonable, price.

PRINCIPLE 4:

When getting no where in the negotiation, become the aggressor

METHODS:

• Express genuine controlled anger at the proposal (not the person)

"I don't see how that will ever work."

• Ask "why" in a way that favors you in order to get them to remember the potential benefits and possible losses of your solution

EXAMPLE:

why would you ever do business with me?

why would you change from your existing supplier?

• Use “I” to set boundaries and avoid negative confrontation. (Be careful that you don't come off too aggressive.)

EXAMPLE: "I feel.."

• Be willing to walk away

We've all heard the "willing to walk away" advice, but if you're like me, that isn't always the easiest. One way of making it easier is to have multiple alternative options outside of the current negotiation.

PRINCIPLE 5: Offer-Counteroffer ( Ackerman Bargaining )

This negotiation method incorporates various psychological principles without you having to think about it.

STEP 1: set your target price (your goal)

STEP 2: set your first offer at 65% of your target price (extreme anchor that pushes them to alter their offer)

STEP 3: calculate 3 raises of decreasing increments (85 > 95 >100) (this convinces them that you are about to break)

STEP 4: use empathy and various ways of saying no to get the other side to counter before increasing your offer

STEP 5: use non-round numbers to give your ask credibility

STEP 6: in your final offer, throw in a non-monetary item that seems ridiculous or non-valuable to demonstrate to them that you are reaching your limits

HOW TO NEGOTIATE A RENT CUT AFTER GETTING A RENT INCREASE

Here are some points or things to consider:

• Bring up comparable lower prices in the area
• Summarize your past good behavior (such as paying on time)
• Incite a "how am i suppose to pay ___ extra?"
• Give an anchor offer
• Mirror their response, and follow with, "I'm sorry but I can't ___"
• Ask them to explain how they came to the increase
• Counter-offer
• Give them time to think and come back
• Use an accusation audit (its seems..)
• Do some fake calculations and provide non-round numbers