Price Not Always The Best Way to Lead Off Negotiations

Price Not Always The Best Way to Lead Off Negotiations

“Why waste time dealing with those other issues if we can’t even agree on price? Let’s just start with price and, if we can reach agreement on it, then we can address the rest.” This not-uncommon approach appears to make intuitive sense. After all, no one disputes the...
Know the Value of Your Product to Your Customer

Know the Value of Your Product to Your Customer

Thomas Edison added up the time and killing pace he had put into inventing the “Universal” stock ticker, a device later used by brokerage houses, and decided he was entitled to $5,000 for it. Ultimately, he figured he’d accept $3,000. So when General Lefferts, the...

Look for Realistic Alternatives to Any First Offering

I was driving south on the Squaw Peak around 9:30 a.m. when the engine missed. Despite my mechanical ignorance, I knew something was wrong. My only question – whether I could nurse it to the shop without destroying the engine. I gambled, and five minutes later drove...

Market Value May Not Matter if Product, Service is Unique

“This is a fair and reasonable price,” my real estate agent told the potential buyer’s agent. “Just look at its market value based on the comparable houses sold in this neighborhood.” One of the most effective moves in many negotiations occurs when parties invoke...

Consider These Factors Before Making The First Offer

Should you make the first offer, or get your counterpart to take the first step? In many negotiations, this can be the most critical strategic decision you make. Early in my career, I heard that you should never make the first offer. Frankly, this is unrealistic....