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8 Killer Negotiation Tricks Clients Don’t Want You To Know

8 Killer Negotiation Tricks Clients Don’t Want You To Know

I have been writing about negotiation tricks for a while now. Well, this is the final nail.

Who isn’t trying to negotiate? As we speak, entrepreneurs are trying to convince investors, corporate giants are trying to convince their clients, and a dad somewhere is trying to get his son to do his homework — we negotiate every day! The aim of my series of posts is to explain certain negotiation tricks and techniques which have worked for me in dealing with people all over the world — across race, ethnicity, cultures, and ages.

Starting with the premise that everybody is a good guy and that at times it is important to say less and listen more, we discussed negotiation tricks such as using the Benjamin Franklin effect or the Foot in the Door technique and spoke about the ways you can frame a killer sales pitch. This is the last one in the series and what I believe will be the most actionable.

Here are 8 killer negotiation tricks which can give you an advantage in many scenarios. Use them with discretion — not all are applicable all the time. I will try to drop a hint on their applicability under each technique, but you remain the final authority when it comes to deciding on which one to use.

1. “I am not authorized to decide.”

When you are at the negotiation table, do not commit that you are the decisive authority even if you are. Leave room for people to think you can turn down even their best deal because there is someone else beyond you who will make the final call.

Why? Three reasons. One, it keeps your client on the edge and does not let him think he has “looped you in.” This slight uncertainty may lure him to make better offers. Two, it will give you time to think. You can walk out saying “I will get back to you as soon as possible,” and study the details carefully before making a final call. Three, If you did not like the deal, you can back down without being the bad guy.

You say something like this:

“Okay. Let me get back to you after discussing with my legal team about your offer. I will call you back.”

“Sorry son, I cannot decide on this. Your mother has the final say when it comes to desserts after dinner.”

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2. Company policy

When you do not accept a certain proposal, use the words “Company policy.” It is the truth and it diverts responsibility, making you sound innocent and helpless. Rules are made for a reason, so use them to your advantage.

“Sorry, I will need the 10% today if you want to seal this deal. It’s company policy. I cannot hold it for you otherwise.”

“I understand, but it’s against company policy to let you leave so early. It’s out of my hands, sorry.”

3. Pre-drafted deals

If I ask my wife “Do you want to go to that party?” she might refuse. If I ask her “So, when do we leave for that party?” She is more likely to tell me a time. The same question can be put across in two ways — one in your favor and the other against.

If I want you to accept a certain clause, I will put it in the contract and ask you to opt out of it if you wish to do so rather than to opt in.

Internet subscription forms often have a field at the bottom: “I want to Subscribe to the Newsletter” which is usually ticked for you. Since most internet users are highly reluctant to click off that button, they will leave it as is and keep getting junk mail for the rest of their lives! Know what I mean?

The same goes for your personal relationships. Frame your questions according to the answer you are looking for. These negotiation tricks often work like a charm.

Enough said — take the hint!

4. Always reject the first offer

As a rule of thumb, do not accept the first offer. It will most definitely favor the other side. Even if the first offer seems great, pause, think, and reluctantly refuse. Wait for the next one. If you are in a fixed price negotiation (as in there is only one offer — take it or leave it), try to get better sub-offers which are not necessarily economic benefits.

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For example, if they are selling you a holiday package and the company won’t budge on the price of the holidays, let them give you bonuses like additional nights, welcome drinks, chocolates, early check-ins, etc. You will be surprised by how many benefits are in the hands of the company executive without affecting their profits at all. Both of you walk out smiling. A perfect win-win, right?

That is what these negotiation tricks are aimed at — creating a win-win for both of you. If you manage to seal a substandard deal, thus cheating the other person, it will come back to bite you someday — you know where!

5. Biased choices

Everyone likes a multiple choice question. It reduces the options to a known minimum instead of requiring you to sift through an uncertain infinite number of options. You can easily lead the negotiation in your favor by introducing a certain finite number of choices, all of which are in your favor.

Think about these lines of conversation:

We have been to Thailand already. Let’s do Hong Kong, Macau, or Philippines this time. The choice is yours.”

“Sir, we are offering you a choice of colors between blue, azure, and white. All of these will cost you the same — please choose.”

“You can choose between paying today and getting that discount of 10% or paying next month but losing the discount.”

“Okay, son. Here are your choices: a day of voluntary service for my club, or help me out at home for two days.”

Negotiation tricks are all about techniques that play with the mind.

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6. Decide on the agenda

As long as you control the meeting or host it, you can control the agenda to benefit your cause. You may simply leave out certain topics from the agenda so that they never come up or place a certain topic for acceptance in the beginning (typically make it the second item, not the first, for maximum impact). If you chair the meeting, you can decide the flow of decisions by placing emphasis on certain topics more than others.

In an annual salary discussion meeting, if you are not keen on increasing salaries, start with:

“Today, we will first equate how our salaries are doing against other companies in the market and decide whether we need a hike.” (Given that your salaries are on par.)

or

“Let’s start with our profits during the last financial year before we discuss an increase in salaries.” (Given that the earnings have not been much.)

If you are in favor of increasing salaries, try the following:

“Let us start by telling you how our employees have benefitted this company over the last year. The accretion rate is high. Keep the people happy and they will bring more performers in.”

These negotiation tricks work like a charm in most corporate environments if you are calm, confident, and a good speaker.

7. Add a new person

Negotiations can get stalled. Let’s say you’ve discussed something with your team and they haven’t been able to come to a conclusion. Change one person in the team and ask them the start from the top. The new person must have decisive powers to change the course of the negotiation and rethink issues.

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The stalemate situation will get a fresh start.

8. Plant pseudo-clauses just to accept their refusal

This is one of those negotiation tricks which is often used in several professional deals and personal agreements. Simply introduce a clause which you really do not need but put it up as being very important. You will get shot down for sure, but then you will get an agreement on the important part.

I will need the full draft on my table by afternoon.” Wait for “How can I finish this by this afternoon?” and respond with “Okay, tomorrow morning then, and in that case, have it ready to be sent out by ten o’clock. Okay?”

If I accept this price for the car, you will give me first year’s insurance for free and alloy wheels with rear parking sensor fitted.” Wait for the rejection of the offer and respond with “Alright then, but I won’t leave without the insurance.”

The reception will be for two hundred and starters and beverages must be included in the price you have quoted. No beverages? Okay, two starters then.”

In each of the above statements, you knew that the other party would reject the added demands. You created those demands yourself knowing they would be shot down. Luckily, usually after refusing one thing, the other party is likely to budge on something else easily, thinking that you have already lost something you wanted.

Conclusion – The Killer Negotiator

These are a few of the many negotiation tricks up the sleeves of killer negotiators. However, I will repeat that ultimate mantra of negotiation one last time:

A good negotiator wins a deal, a killer negotiator creates a win-win!

As they say, do not try to grab the whole pie. Rather, make a way to inflate the pie so that both of you can have big and fair shares. Be honestly useful to your client (or your boss, your wife, or son — whatever the case may be) and they will never regret dealing with you! Stay tuned for my ebook on negotiation tricks, which will include comprehensive negotiation strategies.

Featured photo credit: pixabay.com via pixabay.com

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Last Updated on May 15, 2019

10 Most Successful Entrepreneurs and What We Can Learn from Them

10 Most Successful Entrepreneurs and What We Can Learn from Them

Apart from making crucial decisions for their own businesses, entrepreneurs innovate and grow their ideas. Albeit there being no cookie-cutter answer that fits everyone’s experiences, taking a look at some of the most successful entrepreneurs today, you might spot some similar traits and characteristics.

Starting and nurturing a business entails a great amount of hard work and commitment. However, for aspiring entrepreneurs who are prepared to dedicate themselves to their vision, here are 10 most successful entrepreneurs you can learn from:

1. Melanie Perkins: Know Your Worth and Keep Trying

    Melanie Perkins founded Canva, a Sydney-based business valued at $1Billion having successfully raised a number of rounds of successful funding and boasting more than 10 Million users in 179 countries.[1]

    She told BBC that one of the biggest challenges she faced getting into the business was talking about her company’s accomplishments when she first got to Silicon Valley. She attributed this difficulty to a cultural difference where Australians tend to ‘talk down’ their achievements and this would slow down her fundraising progress for a few years.

    Despite hundreds of rejections, Melanie emerged three years later with a much clearer strategy and stronger investor pitch that prompted a series of fundraising rounds netting the company $82Million of funding in total.[2]

    2. Bill Gates: Keep Learning and Exploring

      If you don’t know Bill Gates, you likely know the company he founded – Microsoft.

      Bill Gates’ story is a prime example of nurturing an idea that might seem out of this world but make sense in the future. One of the most successful entrepreneurs in history did not complete his degree at Harvard University to pursue a vision that the technology would soon become the future.

      He told a white lie to Altair, saying that he had made a computer program for them, therefore pushing himself to create a system that would change modern history.

      “The most important speed issue is convincing everyone that the company’s survival depends on moving as fast as possible.”

      Gates’ success is built on self-improvement and the seeds of an idea.

      3. Elon Musk: Never Stop Innovating

        Traditional thinking suggests that in order to become a successful entrepreneur, one must focus in a single field or industry.

        Elon Musk, however, breaks that rule.

        Today, the multifaceted tech entrepreneur, investor, and engineer advocates for the diversification of skills and businesses by delving into various fields of interest.

        When done right, skills in a single domain can be carried over then applied into contrasting industries to create something new the world might need. Musk owes his accomplishments to a constant thirst for knowledge.

        Having birthed Tesla and a myriad of products across the arenas of aeronautics and software design, Musk continues to evolve as an entrepreneur and plans to innovate for the long haul.

        4. Richard Branson: Develop People First

          British entrepreneur Richard Branson founded Virgin Records in the early 1970s. Virgin Records has since grown into the Virgin Group, today responsible for over 400 companies.

          The billionaire is strongly particular about working with a team that shares his core values and aspirations.

          Branson believes that managing a business can become taxing, thus he acknowledges his employees for putting in the effort that they have.

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          A good leader knows how to raise morale for positive productivity. Utilising emotional intelligence and compassion is a game changer in seeing results within a team.

          Branson’s supports the idea of nurturing a positive work environment, with the belief that credentials must go hand-in-hand with an enthusiasm for work.

          5. Jeff Bezos: A Relentless Focus on Customer Satisfaction

            Having founded Amazon, Jeff Bezos is known to be one of America’s most successful entrepreneurs. The e-commerce pioneer fixates himself on angry customers with the belief that a business’s loopholes are found in the experiences of unsatisfied customers.

            For the 8th year in a row, customers have ranked Amazon as the number one in customer service (according to the American Customer Satisfaction Index).

            While numerous companies ignore unhappy customers, Bezos found success in learning from reviews and surveys. By focusing on customer service, Amazon shows they care, both for their customers and for rising above their competitors.

            While praise and recognition are signs that a business is accelerating, criticism is an opportunity to improve a product or a service.

            6. Mark Zuckerberg: Start Small, Think Big

              Valued at over 55 billion dollars today, Mark Zuckerberg built the first version of what would become a social networking giant in his Harvard University dorm room. As one of the world’s youngest entrepreneurs, Zuckerberg undoubtedly took countless calculated risks to get his brilliant idea to its current status with 2.38 billion active monthly users.

              “The biggest risk is not taking any risk.”

              He’s always daring to explore with a fearless mindset.

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              The young tech entrepreneur never shied away from innovating outside of the box. Soon after Facebook became a hit to users and advertisers, big corporations took interest in buying Facebook from Zuckerberg.

              However, he took the risk and decided to stay with his creation. Turning down billions of dollars offered by Yahoo CEO, Terry Semel, he envisioned turning his brainchild into something much bigger than what it already was then.

              7. Steve Jobs: Live Your Own Dreams

                Steve Jobs lived a rocky path all his life and an aspect of which is a tumultuous career.

                The founder of Apple endorsed his beliefs on the temporality of life and limitations of time. He preached about the importance of working on the very legacies people wish to leave behind, an achievement he’s undoubtedly etched into the the archives of human history.

                Never one to hide under someone’s shadow, Jobs did not live by anybody else’s principles so he formed his own. He tirelessly dedicated himself to building a unique brand of products that became the benchmark for contemporary technology.

                After his highs and lows through his brief battle with cancer, Jobs concludes with yet another lesson to takeaway from his remarkable life. “No matter how much money you have, even the richest man can’t buy time.”

                8. Warren Buffett: Balance is Essential to Success

                  Despite being the third wealthiest person in the world, Warrant Buffett sported a frugal lifestyle for most of his life.

                  After buying a house in Omaha, Nebraska for just above 31,000 dollars, he has lived there since 1958. As a leading investor and a founder at Berkshire Hathaway, Buffett believes in setting aside an amount to save and spend only on necessities.

                  With a long term goal as a top priority in mind always, treating oneself can be sustainable once in a while. He advices to save money by deciding first and foremost what aspects to scrimp on and what aspects to splurge on to ensure a happy and balanced lifestyle.

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                  9. Jack Ma: Never Give up

                    On every journey to success, everybody stumbles and arrives at roadblocks. Some more than most, like Jack Ma, who survived countless rejections and failures only to get back up and brave every storm.

                    Ma is the founder of multinational technology conglomerate Alibaba Group. Despite being rejected to Harvard after every one of his 10 applications, Ma was never defeated.

                    His grit and tenacity is a fine testament to the fact that grades do not determine a future. While qualifications on paper are important, the development of skills and an attitude is just as helpful in making a recipe for success.

                    Despite finding himself in the verge of bankruptcy in the 1990s, Jack Ma possessed the resilience to put one foot in front of the other until he finally made it. “It’s important to have patience,” he says.

                    10. Tan Min Liang: Passion Can Pay Off

                      Tan Min Liang is the founder of the leading high-performance gaming hardware, Razer. Always on the look out for new opportunities to connect and scale his business, Tan has been bold in making many of his life’s decisions.

                      Having deviated from a traditional path set by a family that consists of doctors and lawyers, Tan was to find his life’s work and passion while gaming with his older brother.

                      The idea was simple: there were so many games out there to play, however, there were hardly any gaming equipment to match this.

                      So he dropped out of law and began going a different direction, into creating solutions in the gaming industry. At the start of 2019, Tan wrote to tech luminary Elon Musk to which Musk’s reply suggested of a joint venture between two of the most successful entrepreneurs today.

                      Final Thoughts

                      In today’s cutthroat world, the road to becoming a successful entrepreneur is a long and arduous process trailed with ups and downs. A valuable lesson that a good hand of entrepreneurs would love to convey to aspiring entrepreneurs is to keep the spirit of innovation and to explore uncharted waters.

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                      Learning from experience and failure is one direction to a desired end goal. Exhibiting the same dedication and grit so many entrepreneurs have through their unexpected careers – today’s budding visionaries ought to hang on their dreams and leave room for improvement along the way.

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                      Featured photo credit: Patrick Tomasso via unsplash.com

                      Reference

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