January 10th, 2013Top StoryHow to Get Anything You Want with Minimal NegotiationBy Thorin Klosowski
Whether you realize it or not, you probably negotiate all day long. It's not always about getting $2000 off a used car. It might be as simple as getting the lunch time you want, or convincing your significant other to go to a party with you. That means you have practice, and even if you don't consider yourself an expert negotiator you can still get what you want without being confrontational. Let's start with the basics of preparing yourself for a negotiation (when it's possible) before digging into some tips anyone can use. Prepare Yourself for a Negotiation
A little preparation goes a long way, but the heart of your negotiation is the tactic you use. Here are some good examples. Photo by Julie Vazquez. Expand the Pie, aka "Find Something Negotiable"
The best example of this is a salary negotiation where your employer isn't able to give you more money. If you can't get more money, you need to "expand the pie" by offering up alternatives to a raise. For example, let's say you walk into your bosses office because you feel you're underpaid. Your boss agrees with you, but says that they just don't have the money to give a raise. Instead of walking out despondant, think of other perks you can ask for that don't require money. This might include working from home for a few days, extra vacation time, shorter hours, or any other "free" perks you might want. The main idea is simple: When something isn't negotiable, you need to find something else that is. So, if you find yourself stuck in a negotiation that isn't going anywhere, ask the other person, "why?" In the case of a salary negotiation, it might be the fact the company doesn't have the money. In other negotiations, the answer might reveal another way to solve the problem. Photo by Beth Punches. Use the 15-20 Percent Rule
Let's assume you're buying a used iMac off Craigslist. The seller has it listed for $1200. That seems like a lot to you, so you offer them $950 (about 20 percent less than they're asking). From there, you might haggle up to a $1,000, but chances are they'll take the $950. Why? Because in the case of Craigslist, many sellers list their items for around 15-20 percent more than they'd take for them. The same rule of thumb can also be applied in reverse when you need to throw out the first number (if your limit for spending is $6,000, offer $5,100). This takes care of the nervous negotiators biggest fear: throwing out a number. Photo by Broad Bean Media. Keep Quiet and Listen for Clues
This is probably the easiest tactic to use when you're learning how to negotiate. The more you know about a situation, the better you understand it. This can work great for something like a used car, where if you're silent they'll start listing off everything that's great with the car. When they run out of stuff to say, they might reveal what's wrong with it, like, "That offer is too low, this car only has 100,000 miles on it, but it's a Subaru, and it's in great shape. Sure, it needs a little work on the engine, and the rear window doesn't work, but it starts every time." That's all the information you need to make a counteroffer, "Well, how about you drop the price since I'll have to get the engine looked at and the rear window fixed, because my dog will freak out if I can't roll down the windows?" If you're lucky, the person will talk enough to give you the information you need to swoop in and make an offer you're both comfortable with. Photo by Jennifer Moo. The Nibble, aka "One More Thing"
Galinsky was able to get a $1000 voucher for a future flight, a first-class ticket, a free hotel, a free meal, and a free ride from the airport by simply asking for them using the "one more thing" technique. The lesson here? If you don't ask for something, you can't get it. When you're negotiating with a someone, especially a big company, see how much they're willing to give you for free. Photo by Quinn Dombrowski. Avoid Meeting Face-to-Face with a Well-Written Letter or Phone Call
For example, if you want to negotiate a new price on your rent, a letter is more than enough to get you there. Likewise, a formal salary request letter is a great jumping off point to start the negotiations for a higher salary. Even a simple email to your new employer can get you an extra month of pay. Sure, you'll still likely need to meet face-to-face with your boss to discuss the raise, but at least you'll have the time to present your argument without feeling flustered. Negotiation isn't just about the big ticket items either. Even negotiating your monthly bills like cable or internet over the phone can save you a lot of money and works on the same basic premise. Negotiating something like your cable bill is also great practice for larger negotiations like a salary or a car. Photo by Scott Raymond. In the end, negotiation is all about deciding what you want, and figuring out a way to get there. It's not nearly as hard as it seems, and a lot of the time you'll walk away with what you want because most people don't like negotiating. Of course, this is just the tip of the iceberg, we've highlighted plenty of advanced tips over the years. Once you're comfortable and get through your first few deals, you'll be able to negotiate just about anything.  |
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