During the first quarter of the year especially, as a business owner you may find yourself positioning and negotiating prices with suppliers and clients.
The ones who are going to be most successful are those who have learned the gambits of power negotiation. Not just negotiation, but power negotiation.
Let me explain what power negotiation means, and share with you the powerful opening gambit that savvy business owners are using on the negotiating table…
This strategy is just one of the many power negotiation techniques that I have been teaching to my clients. These strategies are usually extremely simple, but many business owners just haven’t been told yet that they exist.
A few simple changes and you could be picking up money that’s being left on the negotiating table.
Prefer to read rather than watch and listen? No problem – here’s everything I said in the video as text:
Hi, this is Shweta from London Coaching Group. What I’m going to talk about today is Power Negotiation. In fact, just this week, I had a very interesting workshop with my clients where we discussed how to go about negotiating with suppliers with clients, because as you can imagine being the start of the year, there are suppliers who are positioning price increases to clients or vice versa. So one needs to be comfortable with the whole negotiation, understand the strategies, the gambits, the moves.
Difference between Negotiation and Power Negotiation
So the workshop was pretty cool, I wish I could cover all the strategies that we talked about, but I do want to talk about one core, fundamental, in fact opening gambit that you need to be aware of. And again, it’s very simple, very common sense scope, but many people miss out on this. So first things first, the difference between negotiation and power negotiation is, basically, in both you have to win at the negotiating table, that is the objective. But in power negotiation, you make the other person feel that they have actually won. So it’s the feeling that you leave the other person with, right? So they should want to actually come back and negotiate more with you, though you’re the one who has actually met his or her objectives. So that’s the first thing.
Now in power negotiation, the first bidders that always ask for more than expected, that’s the first thing. That’s the first thing, and I’m sure you’ll be like “Yeah, that’s how it should be.” Now, the question really is, how much more? Right? Now for that to happen, you need to understand something called “Bracketing”.
What is Bracketing?
Now for Bracketing to come into function, again, another rule in power negotiation is that you have to ensure that it’s the other person who is stating his or her position to you first. That’s really important, because if that’s not happening, then pretty much you will lose out in the negotiation process. So for example, there is a buyer who is willing to pay, say, twenty thousand for your service. Ok? Just as an example. Wherein in your mind you knew that you should be looking at around twenty four thousand and now you have made the buyer state his or her position, and the person has told you that he or she is willing to pay twenty thousand pounds for your services, but you want to be at twenty four thousand. So that’s the first step.
Then you need to bracket your position. What that means is, that now what you state, your opening position should be equally distant, in the direction where you want to be, right? So in this case the difference between where you want to be and the price that’s been offered by the buyer is four thousand, so you go in the other direction, four more thousand, which is twenty eight thousand, right? So your opening position becomes twenty eight thousand and now the negotiation range is from twenty thousand to twenty eight thousand. If you are following the gambits, and the right moves, and the right strategies, then most probably you’ll land somewhere very close to twenty four thousand, hopefully on a higher side.
So I hope that makes sense. That why it’s important to make the other person state his or her position first, because if that doesn’t happen you cannot bracket. And how you need to bracket your own objective, and then let the game begin.
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