The Brilliant Way To Negotiate In Three Easy Lessons

[tke71709]

Good article on how to negotiate. Especially like the tactic of getting someone to agree on a formula (10x revenue anyone) and then hammering them with details to bring down the price.

http://techcrunch.com/2011/11/19/how...-easy-lessons/

• Have everyone agree on a mathematical formula to value an asset or service.
• Then when you start plugging in the variables, that’s where the real negotiation is occurring and if you know in advance that those numbers are going to be lower than thought, then you will win the negotiation and everyone will be happy when it’s over. It is always key for both sides to be happy at the end but since everything started off on a point of agreement, it is much easier to keep both sides happy at the end even if there is disappointment along the way.

Also the concept of giving away the nickles to keep the dimes is a good one as well.

Then, to make his point he reached into his pocket, in the middle of this ancient coin show, and he pulled out a dime and a nickel. “This way,” he said, “if you have more points to discuss. You can give up the nickels.” He pushed the nickel towards me. “And keep the dimes.”

[Clinton]

Another good article from Inc: How to negotiate effectively

[WSYSBroker]

I use a similar line when speaking with clients.... "Don't step over nickels to pick up pennies". Time and time again I have clients who are so focused on the little things when trying to work out a deal that they forget about the bigger picture. Just saying that line sometimes makes them understand that they should just get over the little issues to focus on the big one, which is usually buying or selling the site in question.

[grynge]

One of the points I find interesting but not sure if I could adhere to is

2. Opening Gambits
Make an aggressive first offer. Though negotiation lore has it that you let the other side go first, a growing body of evidence suggests that a well-prepared first mover has the advantage. An opening price serves as a reference point, or "anchor," that a counterpart -- even an expert in the field -- unconsciously adheres to, says Galinsky. If you have a good feel for your opposite's reservation price, make an offer that's just beyond it -- that is, just above his top purchase price or just below his lowest sale price -- even if it exceeds your own target price. According to Galinsky, the fear of alienating your opposite is "typically exaggerated" -- that is, so long as the offer is defensible and not outlandish.

Whenever I go into a deal, I try to have 3 prices, the most I think I can get, what I think is a decent price and would really like, and the lowest I will take.

Everytime (that I can think of) if I let them offer the first price it has been either way below my lowest (trying to get a bargain) or above the most I think I can get. Whenever I have put the price out first I have normally either gotten the first price or somewhere between the highest and my middle price.

I suppose this also might change if you are the originator of the deal.