There is one simple negotiation skills technique that can be deployed by anyone to immediately and positively impact their negotiation results. This method is to always (yes always) exaggerate your expectations at the negotiation table.
Henry Kissinger, the well-known 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 quite a lot of reasons why it is key for you to start with high aspirations when you participate in negotiations:
1. Research has confirmed that high objectives will constantly do better than 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 effectiveness of something so simple. Many of my customers are very happy when they understand that they can accomplish more from their deals by simply asking for more!
2. Having high aspirations will let you to 'anchor' the negotiation around your aspirations. It is much better 'anchoring' negotiations around your aspirational level rather than your minimum acceptable rate. Having high aspirations express confidence and acts to underline the quality of your recommendations.
3. Perhaps most importantly, having high objectives will present you with the opportunity to be flexible in your negotiations. Research tells us that almost everybody compare their success at the negotiation table with their opportunity to gain dispensations from their counterparty. The reality is that your counterparty will have no motivation to be flexible or to make allowances to you if you are not prepared and able to make allowances to them.
Therefore, if you do not allow yourself some 'room to move' then you risk coming across to your counterparty as someone who is inflexible and unprepared to make concessions. Please note that I am NOT proposing that you start your negotiations with extreme and unworkable demands. Your opening offer should reflect a level that is realistic and that you are able to justify using a solid, factual argument. It can be high risk using extreme requirements and offers as your counterpart may well decide not to deal with you at all.
Some time ago I worked with a large multi-national organisation 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 the USA, most of their clients have come to know them as the type of business that has a conservative method to business and have learned to live with this approach. However, when using this method in Poland, the company realised that they were being perceived 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 exceedingly difficult to conclude 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 permit clients the opportunity 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 aspirational goal, not their minimum expected outcome. This means that you should never agree to any first offer that is made - you must always negotiate!
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