Everything in life is negotiable

Negotiation Strategies

Most organisations take a highly structured approach towards negotiation – especially purchasing decisions. Not many Fortune 500 companies send their buyers in to meet a client without detailed training in the science of negotiation and a rigorously analytical work plan. Start applying these decision making approaches in your own life.

I highly recommend a serious study of the work of Dr. Robert Cialdini of Arizona State University. He is widely regarded as a leading authority in the world of persuasion, stressing the importance of key psychological principles such as reciprocity, scarcity and social proof.

Devise a structured negotiation plan for major purchase decisions – consider your aims and objectives, your baseline (minimum) requirements without which you would walk away, and the tradable element in any bargain. Work on securing collaborative not competitive outcomes, especially in situations where an ongoing relationship is essential. (This is in fact most business and personal situations).

Remember that your moments of negotiating power are greatest when you have just received a word of thanks, and when you have just received a rejection. The latter situation is an ideal opportunity to launch a more reasonable counter-offer, as rational human beings will usually seek an acceptable solution. 

Purchasing Strategies

1. When making a major purchase such as a car, ensure you have a written negotiating strategy. Do not rely on intuition or "your wits" - these may fail in the heat of the moment.  
2. Use price comparison websites and peer recommendation websites ruthlessly to isolate the best price for every product and set your minimum baseline standard - the "walk-away" price
3.  For major purchases such as a house, consider a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis not only of the product itself but of the negotiating target him/her self.
4. Work out your verbal responses and rebuttals in advance - develop a "practice script" before the actual negotiation begins. Be ready to employ classic defensive strategies e.g. the "higher authority" response ("I'll have to refer to my wife. She makes all the decisions!").

The current recessionary climate of course tilts the balance in your favour as a consumer. Today the customer truly is king. Act like one.

(c) WestOcean 2008