100%(4)4 out of 4 people found this document helpful
This preview shows page 89 - 91 out of 198 pages.
What I mean is this: When confronted with naming your terms or price, counter byrecalling a similar deal which establishes your “ballpark,” albeit the best possible ballparkyou wish to be in. Instead of saying, “I’m worth $110,000,” Jerry might have said, “At topplaces like X Corp., people in this job get between $130,000 and $170,000.”That gets your point across without moving the other party into a defensive position.And it gets him thinking at higher levels. Research shows that people who hear extremeanchors unconsciously adjust their expectations in the direction of the opening number.Many even go directly to their price limit. If Jerry had given this range, the firm probablywould have offered $130,000 because it looked so cheap next to $170,000.In a recent study,4Columbia Business School psychologists found that job applicants
who named a range received significantly higher overall salaries than those who offered anumber, especially if their range was a “bolstering range,” in which the low number in therange was what they actually wanted.Understand, if you offer a range (and it’s a good idea to do so) expect them to come inat the low end.4. PIVOT TO NONMONETARY TERMSPeople get hung up on “How much?” But don’t deal with numbers in isolation. That leadsto bargaining, a series of rigid positions defined by emotional views of fairness and pride.Negotiation is a more intricate and subtle dynamic than that.One of the easiest ways to bend your counterpart’s reality to your point of view is bypivoting to nonmonetary terms. After you’ve anchored them high, you can make youroffer seem reasonable by offering things that aren’t important to you but could beimportant to them. Or if their offer is low you could ask for things that matter more to youthan them. Since this is sometimes difficult, what we often do is throw out examples tostart the brainstorming process.Not long ago I did some training for the Memphis Bar Association. Normally, for thetraining they were looking for, I’d charge $25,000 a day. They came in with a much loweroffer that I balked at. They then offered to do a cover story about me in their associationmagazine. For me to be on the cover of a magazine that went out to who knows how manyof the country’s top lawyers was priceless advertising. (Plus my mom is really proud ofit!)They had to put something on the cover anyway, so it had zero cost to them and I gavethem a steep discount on my fee. I constantly use that as an example in my negotiationsnow when I name a price. I want to stimulate my counterpart’s brainstorming to see whatvaluable nonmonetary gems they might have that are cheap to them but valuable to me.5. WHEN YOU DO TALK NUMBERS, USE ODD ONESEvery number has a psychological significance that goes beyond its value. And I’m notjust talking about how you love 17 because you think it’s lucky. What I mean is that, interms of negotiation, some numbers appear more immovable than others.