Management Tips

Aim Higher

Always aim higher in negotiation, and you’ll come out better. Experience and research have proved this over and over, time and time again. Remember, your job works against you here. You hear your prices are too high, your competition too good, your product not good enough. Turn a deaf ear to these comments. Keep reminding yourself they’re just tactics, ways to get your price down. Aim higher; you can always come down if you must.

Remember Your Power

Power is what you think it is. It’s in the mind. Go over all the possible powers you might have going for you before any negotiation. Don’t think about the limitation on your power. Think about the limitations on the buyer’s power-his pressures, his problems. Remember the Paradox of Power that’s been demonstrated so many times. One person with real power doesn’t realize it and goes into the negotiation timid and intimidated. Another person with little or no real power goes in demonstrating strength and vigor. The second one does better. Why? Because power is in the mind.

Use Wooing

Remember your power of wooing, no matter how good business is. The more business you want, the more you will get. Woo the customer, impress him with how much you want the business. That’s want, not need. Never need the business but always want it. Remember too, that work can be part of the power of wooing. Do your homework, show the customer you made extra efforts to get his business.

Take Risks

Being willing to take risks is a power for you in negotiation. How much you can risk is a business judgment. Remember, there are a great many risks buyers won’t take. And the larger the buyer’s organization, the more risks he won’t take. Be willing to gamble for a better deal.

Use Legitimacy

The printed price list, the printed discount sheet, the published credit policy, the standard form, the regular procedure-all these can work for you. If your published policy states you cannot give more than 30 days credit, the buyer will accept it quicker than he will accept your word for it. And you’re not his adversary. Your printed credit policy sheet is his adversary. It’s in print,, so it must be true. Legitimacy is a strong source of power for you.