MY FAVORITE NEGOTIATING TECHNIQUE OR IS IT?
Hi Everyone, Did you know that by eliciting one of my favorite negotiation strategies you can save BIG money no matter what you purchase? It's true! The strategy is called "Never Take the First Offer or Counteroffer" – This is simply refusing to accept the “other side’s” first offer or counteroffer. Before I go too far here, you have to understand that most companies build huge profit margins into their products and services. This is how they make money! Therefore, there’s still room in the asking price for a little savvy bargaining. Let’s look at an example from the wonderful world of contractors. Anytime you get a bid on construction work, you can be assured the contractor built in a HUGE profit margin. Almost 100% of the time, you can refuse their first bid and they’ll immediately submit a new bid with a lower price. My advice is to refuse the second bid as well. Say, “That isn’t within our budget” or “At that price, we’re forced to request further bids from other companies.” Bottom line…test them! Test them and see if they come at you with a third or fourth counteroffer. Most of the time, you’ll get at least one counteroffer. Usually two! They won’t admit it, but believe me when I say...they want your business every bit as much as you need them to do the work! And always turn down initial counteroffers! Always remember…the person making the first offer takes the risk of being rejected and helps the “other side” establish their negotiation strategy. Remember...never make the first offer! Until next time... Peter Wink
Author, Getting Clear of FEAR