home office

Success in negotiating is a lot like becoming proficient in martial arts. You must learn to use of timing, power and leverage to your advantage. In bargaining contests, Americans tend not to do very well when compared to people in other countries around the world. There are some real black belts out there, and here are some common mistakes that often keep us from getting the best deals:

MISTAKE #1: Being Afraid To Bargain

            Some of us are a bit timid when it comes to haggling, because we’re afraid to be rejected. In reality, there is no rejection in negotiating. If you ask for a lower price and the other party says, “no,” what have you lost? Nothing! Now you have the choice of continuing to pay full price or take your business elsewhere.

MISTAKE #2: Believing It’s Not Worth Haggling Over Small Items

            Many Americans only think about negotiating when it comes to big-ticket purchases like cars and houses. The real savings come when you get discounts on things you buy more frequently.

MISTAKE #3: Forgetting That Everything Is Negotiable

            Anything is negotiable under the right circumstances. You would be surprised to find what others will do to earn your business as long as you keep in mind that there must be a benefit to them of accepting your offer.

MISTAKE #4: Thinking About Ourselves First

            Many people only consider what they’ll get out of a negotiation. Black belt bargainers are always thinking about what’s in it for the other person to accept a deal, not what’s in it for themselves. They know that if there isn’t a clear benefit to the other party they will never seriously consider an offer. Finding ways to help people solve their problems will make it easier for them to give you what you want.

MISTAKE #5: Making the First Offer

            Try not to make the first offer anytime you bargain, because it limits your options. Even if the price is clearly marked, you can always ask, “Would you take less to sell this today?” If you are a buyer and you make the first offer, it sets the lower limit because now you can only raise your price. If you are a seller and you name a price you can only go down from there.

MISTAKE #6: Being Too Nice

            If you must make the first offer, make it low if you’re buying and high if you’re selling for the reason stated above. It sets the lower or upper limit and reduces your options. Being aggressive with your first offer leaves room for negotiating. Don’t worry about being nice as the other party can always say, “no.” You never want the other party to agree to your first offer because that leads to the next mistake.

MISTAKE #7: Being Too Eager

            A martial artist always starts a contest by testing his opponent. Take your time when bargaining. In America “time is money,” but in other countries it is used for building relationships. There is one word that a black belt negotiator never wants to hear early in the bargaining process—“okay.” This means that you paid too much or asked too low a price because you got impatient.

MISTAKE #8: Not Doing Your Homework In Advance

            Most martial arts tournaments are won or lost before they ever begin, and it’s the same with negotiating. Just like a fighter would never step into the ring without having spied on his opponent, you should, too. No matter what you are buying or selling, you can find out valuable information such as: the current demand, the profit margin, and other priceless data.

MISTAKE #9: Not Playing To Win

            Everyone has heard that in negotiating you want to develop “win-win” solutions, but in reality, nobody believes in tying. You don’t want your opponent to get the better end of the bargain and neither do they. This is not to say that you try to take advantage but you should always try to get the best deal you can and assume that the other party will do likewise.

MISTAKE #10: Missing Opportunities to Negotiate

            Every time you pull out your wallet to pay for a purchase you should ask yourself, “Is this a chance to practice my bargaining skills?” This is not to say that you absolutely must bargain on everything, but every transaction adds up, and the more you bargain the better you become. HBM

Michael Lee is a world-class negotiator, former martial arts instructor, and author of the upcoming book “Black Belt Negotiating.” This is his first new book on negotiating in over a decade and shows people how to become master bargainers using ancient martial arts techniques. Michael has negotiated everything from motion picture deals to multi-million real estate transactions and even discounts on gasoline for his car. He is a nationally-known professional speaker and consultant whose clients include Fortune 500 companies such as: Coca-Cola, General Motors, and Chevron. Michael is President of EthnoConnect™ the Multicultural Sales Solution and can be reached in the U.S. at (925) 829-9700. His company’s web site is: www.EthnoConnect.com.