Join Mike Figliuolo for an in-depth discussion in this video Setting up future deals, part of Strategic Negotiation.
- When you go through any negotiation process,…you have to realize that this deal sets up future deals.…Consider this negotiation's impact on future negotiations.…If you don't, you potentially can make some huge mistakes.…Every deal sets precedent for the next one,…in terms of the numbers, the terms you come to…as well as the tone of that negotiation.…For example, if you're selling a service…and you decide you're going to set a discounted rate upfront…set your list rate and then offer a discount off of that…versus just offering a lower rate…without talking about the discount.…
Why? Because that rate is going to become permanent.…So if initially you set a rate here and…say the first time out, I'm going to offer you a discount…but then you can go back to that initial rate.…If you set the rate here to start,…you're going to be stuck there.…I have this conversation with my instructors…when we bring on new clients and when we send…those initial contracts and the invoices.…We go to the trouble of saying, here are the list rates…
- Explore methods for defining all of your negotiation options.
- Recall how to make concessions when appropriate.
- Select the best negotiation style and strategy.
- Determine the most favorable deal structure.
- Support your anchor position.
- Recognize how to sequence your deals.
- Track negotiation points over time.
- Identify the most common negotiation pitfalls.