Quick negotiating tip

Negotiating, whether in business or simply buying an expensive item can be very difficult for someone without much experience or knowledge on the craft. I can literally spend an entire day or more on teaching and explaining all the complexities that make a person a great negotiator. However, in this post I will focus on one very important aspect of the negotiation.

When it’s time to talk price, it is always a good idea to drop an “anchor”. This means that whether you or the opposing side gives the first price or number, you give a lower price than you really think you can or should get. I call this dropping an anchor. Obviously, I am talking from the position as the buyer, but if I am the seller then I give a higher price than I think I can or should get for what I’m selling. The key here is to not be afraid. Even if you drop a really low anchor, the seller will not shun you or refuse to sell to you (even though sometimes they will pretend at first). Don’t be shy and give a low anchor. This will put you in a more favourable position moving forward.

Next, the seesaw battle will commence. This means the process of the buyer slowly inching up with what he/she is willing to pay and the seller mirroring by slowly coming down in price. Eventually, you will reach a small enough gap that you can agree to a number. Keep in mind that a deal will not always be reached, but if there is a deal to be made then this will lead you to a fair one, at least from your stand point.

You will usually have to move away from your anchor, but that is ok because that’s what the anchor is for. This will also make the other party feel better about the deal because they will have felt that they negotiated you away from your initial offer. This is one of the most important tips to a successful negotiation. You’re welcome and good luck!