We turned to one of the best negotiators in the business, Craig Devlin from Devlin & Co, to share his top tips with us to negotiate successfully. Craig also provides some of his best techniques so you can identify when these tips are being used on you!
- Always ask for more than you expect. Who knows – you may just get it. Asking for more provides ground for the other side to negotiate and get a ‘win’. Remember that the aim of a successful negotiation is for the other side to feel that they have won.
- Never accept the first offer. Imagine how you would feel if the seller accepted your first offer.
- Learn to flinch. If you react visibly to the price, it’s often immediately followed by a price reduction from the other side. If you don’t react, this signals that their ‘wish’ price is feasible.
- You’ll have to do better than that. Say this phrase exactly for a ‘non-confrontational’ way to extract a price reduction. But it can also elicit a counter response: ‘Well, how much better than that do I have to do?’
- The vague ‘higher authority’. If you have someone else vague to defer to, such as the ‘board’ or the ‘management team’, it allows you to create an authority you need to consult with, which adds an extra layer of negotiating room. Don’t make it a person though, as the other side will want to deal with them directly.
- Never offer to split the difference. Get the other side to offer instead, because they may be persuaded to split it again. Even if they don’t and you have met their price, you have created a ‘win’ for them.
- Reluctant seller/buyer. If you’re a reluctant participant from the start, the other side may be encouraged to give up a fair chunk of their negotiating range straightway.
- Good cop/bad cop. It may sound a little ‘Hollywood’ but this happens often when negotiating with two or more people. The best thing to do is laugh and acknowledge it: ‘Come on! You’re not going to play good cop/bad cop with me are you?’
- Taper concessions. As you enter into the final negotiations, make each concession a little smaller than the last. This sets up an expectation that you are coming to the end of your range.
- Beware of nibbling. Nibbling is the art of extracting small concessions after the main deal has been done. Examples are extended terms of trade, earlier delivery, extended warranty, etc. The best way to stop it is to immediately ask for one back: ‘If I do that for you, what can you do for me?’
With thanks to Craig Devlin – Devlin & Co for his inspiration and words.
i like reading this article…thanks.