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Negotiating Tips

Discussion in 'Resources & Success Stories' started by soj, Apr 16, 2012.

  1. soj

    soj Founder

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    When I was on SmartCompany this morning, I saw this great article by Sue Barrett of Barrett.com.au

    Top 10 tips when negotiating

    The key points:


    I love number 5. I've got to work on that myself!
    .
     
  2. DavidL

    DavidL Membership: VIP

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    auDA Member:
    Yes
    It's a good list but I do disagree with #7 actually. For me, invariably when I do it this way I get a shocking lowball and from there on it's a battle to get anywhere reasonable.

    Eg you think a domain is worth $500. So you'd be happy to sell it for anything more than $750 say. If you let the buyer make the first move and offer $100, it's a real battle to get anywhere near the $1750

    However if you state you are looking for $1,500 say but stress strongly that you will always consider ANY OFFERS WHATSOEVER, you are unlikely to scare the buyer off and you can bet their opening offer will be more than $100.

    Price anchoring - I've posted this before:

    http://youarenotsosmart.com/2010/07/27/anchoring-effect/

     
  3. snoopy

    snoopy Membership: VIP

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    Definitely disagree with #7 also. Asking the other party to go first sets things up for the "extreme" positions that she talks about earlier. Trying to talk someone away from an extreme position is much harder than setting the benchmark yourself.

    I used to get the buyer to go first, not once the did they make an offer higher than I would have asked for. 90% of the time it would be a lowball, the other 10% of the time it would be just low. Setting the benchmark yourself will result in more sales occurring at prices that are better for you.

    I think also the extreme position stuff is dangerous advice for people buying/selling domains. If it is not on the reasonable side then a sale is very unlikely in my view, they'll find something else.
     
  4. snoopy

    snoopy Membership: VIP

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    8. Don’t accept the first offer

    If you do, the other negotiator will think they could have done better.

    They will be more satisfied if you reject the first offer because when you eventually say “Yes”, they will conclude that they have pushed you to your limit.

    //////////////


    Think this is bad advice also. Sometimes it makes sense to accept the first offer. If you reject the first offer you risk missing out on the sale or the purchase. I think there is ways to accept a first offer whilst sounding like you're paying way more than you anticipated, thinking about it overnight and telling them it is alot higher than you budgeted, talking to your business partners etc.
     
  5. soj

    soj Founder

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    A rare event has happened. The planets have aligned - or is it a "Domainer's Eclipse"?

    Snoopy and DavidL have agreed on something.

    :D

    .
     
  6. GGroup

    GGroup Membership: Community

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    I had the same reaction at first... but then I read it again (and again).

    Now, I think # 7 actually reinforces the anchor effect theory. The way it is worded, in relation to all the other points, is just confusing.

    I read it as advice just for the buying negotiator, due to the phrases "aspirations are low" and "may ask for less than you think".
    These indicate, to me, it is only advising the buyer, in point # 7.
     
  7. snoopy

    snoopy Membership: VIP

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    I think it works both ways, if you are buying, offer first.