Your opening offer should not be a round number. Round numbers sound made up; for example, a 300k offer for house sounds like a game, but 284k sounds either like it was very accurately estimated, or like every last penny from your savings. It also helps you to move in smaller steps.
- [Instructor] A very simple and important rule…for opening offers is that they should…not be a round number.…What's your first thought when someone…quotes you a round number?…Say a builder quotes you five hundred dollars,…or a supplier quotes you 20 grand,…or a customer tells you they have a maximum budget…of 20 grand, you know it's made up, don't you.…You know it's just a number they've plucked out of the air.…If they want five hundred thousand for a house,…you know it's just something that they're trying for.…It's not based on facts.…
It can't be, because it would be an amazing coincidence…if that was the exact amount that all the calculations…came out to.…So, it's obvious that for your offer to be credible,…you have to use non-round numbers.…And this applies to your opening offer,…and then all your numbers from then on.…Why don't people do this?…I suppose it's because basically they are making numbers up.…And it's quite hard to make up numbers that aren't round.…But you must do this.…
Practice it, prepare it, and then you'll be able to do it.…
- Why we avoid negotiating
- When you should think about negotiating
- Planning your negotiation
- Calculating your opening offer
- Leveraging different negotiation tactics
- How to trade
- Determining if you should walk away
Skill Level Beginner
Negotiating Your Leadership Successwith Elizabeth Robillard1h 20m Intermediate
1. Decide to Negotiate
2. Planning Your Negotiation
3. Opening Offers
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