There is one simple negotiation skills method that can be utilized by anyone to immediately and positively influence their negotiation results. This technique is to always (yes always) overstate your expectations at the negotiation table.
Henry Kissinger, the well-known American Secretary of State said: Effectiveness at the conference table depends upon overstating one's demands, a famous quote referred to in both negotiation training and sales training courses. There are numerous grounds why it is vital for you to start with high aspirations when you engage in negotiations:
1. Research has confirmed that high aspirations will steadily outperform low aspirations. Many refer to the fact that if you want to hit the moon, you must aim for the stars. You will be astonished by the value of something so simple. Many of my clients are very happy when they realise that they can accomplish more from their deals by simply requesting more!
2. Having high aspirations will permit you to 'anchor' the deal around your aspirations. It is far better 'anchoring' negotiations around your aspirational level rather than your minimum acceptable level. Having high aspirations express confidence and acts to emphasize the quality of your proposals.
3. Perhaps most critically, having high objectives will allow you the room to be flexible in your negotiations. Research tells us that most people compare their accomplishments at the negotiation table with their opportunity to get allowances from the other side. The reality is that your counterparty will have no incentive to be flexible or to make concessions to you if you are not prepared and able to make allowances to them.
Therefore, if you do not permit yourself some 'room to move' then you risk coming across to the other side as somebody who is inflexible and unwilling to make concessions. Please note that I am NOT suggesting that you start your negotiations with extreme and unworkable demands. Your opening offer must show a level that is realistic and that you are able to rationalise using a good, factual argument. It can be high risk using extreme demands and offers as your counterpart may well decide not to negotiate with you at all.
Some time ago I worked with a large multi-national organisation who used a tactic of 'the price we demand is the only price we sell at'. As they are a well recognised and old company in America, most of their clients have come to know them as the type of organization that has a conservative approach to business and have learned to live with this approach. However, when using this method in Poland, the company realised that they were being perceived as being uncompromising by the other side because they would never budge on their prices.
In Polish business culture this method was not acceptable and they found it very difficult to conclude agreements in the Polish market place. The simple remedy was for them to ask for a little more than their standard prices so that they could permit clients the opportunity to negotiate with them and to gain some allowances from them. This method proved to be very successful for them.
Of course, bear in mind that 9 out of 10 times your counterparty's first offer will be an ambitious goal, not their minimum expected outcome. This means that you should never accept any first offer that is made - you should always negotiate!
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