never split the difference
communicate actively
especially important for person in weaker position
understand
- listen intensively
- show empathy and sincere desire to understand
- validate emotions by acknowledging it ("it sounds like")
- repeat last 3 words / main points to signal understanding
explain
- "stop me at any time you feel it is unfair"
trigger no's
- helps to feel in control
- "is now a bad time to talk"
- "have you given up on the project"
negotiation preparation
leverage
- positive (something they want)
- negative (can make them suffer; loss aversion makes this more powerful)
- normative (where other partie's values conflict)
reflect
- choice of words
- choice of clothes
- beliefs & ideas
negotiation one-sheet
- set optimistic but realistic goal, discuss with others & write it down
- summarize known facts that lead up to the negotation
- also include non-cash offers
get information
perform accusation audit
interesting information
- who do they report to
- what is their audience (team / environment)
- what signifies status / reputation
- what most worries them
- what are their (personal) dreams
calibrated questions
- to reveal interests & overcome deal killers
- what makes you ask
- what about the deal is important to you
- how can I make this better for us
- how would you like me to proceed
- how can we solve the problem
- how will we know we are on track
- how do we address things if we find we are off track
accusation audit
- confirm suspicions
- like "it seems like ... is valuable to you"
ungarded moments
- observe behaviour when felt unobserved
- like before / after meetings, interruptions, ...
price negotiations
accusation audit
- "You are going to be insulted by my offer"
- "I am embarrassed to tell you my offer"
- "You are going to think I have not done my homework"
anchoring (unfair)
- give extreme anchor to set the stage
- compare with similar deals in high range
anchoring (fair)
- use precise calculated (eg non-round) numbers
- let other suggest first (might be higher than what was hoped for)
- add non-monetary things
deflect anchor
- answer with own unreasonable anchor
- restart from principles ("what are we trying to accomplish")
- non-monetary ("what else can you offer to make this a good deal")
decrease offer
- in decreasing steps, like 65% -> 85% -> 95% -> 100%
- add non-monetary offer at limit
use own name
- what is the florian's discount?
stuck negotiations
getting a no
- what about this does not work for you
- what do you need to make it work
reason for unrealistic expectations
- ill-informed
- constrained
- hidden interests
loss/risk aversion
- clarify what is lost when deal is not striken
- imaginary (profits) or real (turn off installation)
rejection
- "thank you for taking the time to talk to me"
- "that is more than fair"
- "but just does not work for me / I cannot do that"