How To Negotiate A Bigger Budget

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How To Negotiate A Bigger Budget

There is a psychology behind loss aversion. Tactical empathy is the most important strategy you can apply when negotiating a deal. Empathy isn’t sympathy or agreement. Empathy precedes assertion. It’s how you bypass anger, self-interest and perceived rationality.

 

He or she who puts out the number first loses.

 

You want to start by building trust. Speak slowly and lower your tone of voice. Putting out the number first doesn’t build trust. It does, however, provide the other person valuable information that they can and will use against you. It will set an anchor – set the zone of possible agreement. If you’re not careful, that could make deals go away. Once you’ve thrown a number, no matter what it is, at that point you have admitted there is a deal you would make. Ask questions like, “What kind of budget did you have in mind?”

 

“Yes” is nothing without “How”.

 

The biggest mistake most people make is trying to get the other person to say “yes”. It’s counterfeit – a great lure. “Yes” creates anxiety. “No” creates feelings of safety. Ask questions like, “Are you against committing to this now?” instead of “Are you ready to commit to this now?” A calibrated “no” is more effective than 3 or 4 “yes” answers.

 

If you are negotiating through email, send a quick 9-word email that says, “Hi {Name}, have you given up on {project}?”

 

At the end of the day, hold your ground. Part of holding your ground is saying “no” in polite ways. Exercise tactical empathy and patience, and the clock will work for you – not against you.

 

From <https://blog.blackswanltd.com/the-edge/the-3-best-tactics-to-not-name-price-first>

By | 2018-06-13T22:33:55+00:00 June 13th, 2018|Uncategorized|0 Comments

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