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Exclude Competition

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If you could exclude competition in any negotiation, you'll have a better chance of getting what you want, right? How do you do that? Start by never mentioning competition to the other side. It's possible they don't know all their options, and it's not your job to enlighten them.

At the negotiating table, be ready to confront the competition head-on, when the other side brings it up. In the carpet cleaning business for example, an owner could politely dismiss the competition when it is brought up. He could say something like, "They're okay, if price is all that's important to you. Of course, they can't clean as deep with their machines. If you want the deepest cleaning and at a temperature that kills dust mites and other things in the carpet, you have to have a machine like ours, and fully trained technicians."

Extreme Initial Positions

Of all negotiation strategies, this is perhaps the best known, but most are afraid to use it. A real estate investor I was talking to the other day told me,"If you aren't embarrassed by your offer, it isn't low enough." He's made millions in real estate, so I think he's worth listening to.

Many years ago I sold a car. A nice guy, after crawling under and inside the car, offered me half of what I was asking. I said no, and he left his phone number, in case I changed my mind. As he drove away, I wondered what was wrong with the car, and I was suddenly hoping I could get just a bit more than that half-price offer. My expectations had been altered quickly. Fortunately another person gave me the full asking price before I decided to pick up that phone.

Emotional Outbursts

I remember sitting there at a real estate closing years ago. The older man who was buying the house for his daughter was told he would have to pay for the propane left in the tank, as is standard when buying a propane-heated home. He stood up, and started shouting, "I'm not paying for anything like that! We didn't agree to that! You can't expect me to pay..."

The seller was desperate to sell, and began to cry. The other agent explained to the old man that it was simpler this way, and that he'd have to buy propane in any case, if the tank was empty. The seller just said, "Fine, I don't care. He can have the propane," and that was the end of that.

I don't know if the old guy meant this as a negotiating technique, or was truly upset, but it saved him another hundred dollars or more. I can't really recommend this as a technique, but you should know that it is taught as one, and it may be used against you.

Build Trust

Building trust can help keep things going smoothly, and help you get what you want in circumstances where the other side might doubt your intentions. So how do you build trust?

Telling the truth is a start, of course, but you can also approach this in a more active way. Make it a point to promise things that you can easily follow through on. This could be as simple as saying, "I'll get that information to you by tomorrow morning," or "I'll tell you what. I know time is crucial to you on this matter, so I'll have those reports delivered to your accountant in person by this afternoon."

The point is to let them know what you'll do, and then do it. Just delivering the reports without first saying you'll do it won't be as effective for building trust. There are subliminal techniques for building trust, but honest action is the most convincing negotiation strategy. In other words, find things to promise, and be sure to follow through.


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