The starting point of a deal has a huge effect on the final negotiating price. In this video, learn how to appropriately set anchors for your negotiation.
- There's an interesting dynamic … that can happen in negotiations. … It's called anchoring. … Anchors are initial points … from which you're going to negotiate. … They can lock you into a position, … and unfair anchors can kill a deal. … If you get one, consider walking away. … Also understand, … if you give the other party an unfair anchor, … they may walk away. … When you go to set an anchor, … base it in reality with data or assumptions. … Many times, the final offer in a deal, … will end up within a reasonable distance … from that initial anchor. … For example, if you anchor your deal at $100 upfront, … and that's your first offer, … more often than not, you'll end up between 80 and $100. … If instead, that first anchor was $500, … you'll end up between 400 and 500. … That anchor can drive the final deal price a great deal. … Now understand, … that anchor also has to be based in reality. … You can't just throw a huge number out there, … without some basis in fact. … If you receive an anchor from the other party, …
- 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.