The Negotiation Board

5 Biggest Negotiation Mistakes

lisa — Wed, 04 Jan 2012 21:38:06 +0000

The definition of negotiate is to reach an agreement or compromise through discussions. Negotiating can be applied to nearly every aspect of our life. Many times we don’t even know we’re doing it. Yet there are some very basic principles that if done incorrectly, will yield undesirable results. Don’t make the mistake of falling into these bad habits.

1. Being Unprepared. If you are going into a scheduled negotiation, you have to be prepared. Otherwise you will fluster easily, can lose sight of your goal and become easily duped. Take the time to write down what you want, why you want it and what you are willing to compromise. And practice saying it out loud. Even if it’s to your cat. You’ll be much more comfortable on the day of.

2. All or Nothing. Having the attitude of ‘it’s my way or the highway’ will yield bad results. Put yourself into the other person’s shoes. You are both there to reach an agreement that is acceptable to you both. A Win-Win. And sometimes that means compromise. You should have it written down what you are willing to compromise.

3. Ultimatums. Trying to tell the other person there’s only 2 options is a guaranteed road to failure. There is always a 3^rd option and that’s hitting the road, leaving nothing accomplished. Have many options in your head, starting with the most desirable. And listen to the other person. Don’t shoot down the negotiations before they’ve really started.

4. Focusing on ‘What’ Instead of ‘Why’. If all you see is the big fat salary raise your employee is asking for, you’ll be missing important information. Ask questions. Find out why they want it. Maybe they are looking to buy a house or are expanding their family. Or they’ve been at the company awhile and feel they deserve it. Listening more will give you a leg up because you’ll have detailed information to discuss.

5. Losing Your Cool. It can be hard to keep emotions out of the equation when you’re negotiating things like the sale of your home or a salary raise. You feel passionate about it. But nothing will lose you the upper hand in negotiating like visibly getting upset (especially if the other person is a skilled negotiator). Try and think of the discussions as a business transaction and not a personal one. Keep your head above the conversation. If something angers you, stop and ask yourself why. And give yourself a reminder to stay calm. It will benefit you tremendously.

Of course, like with everything, practice makes perfect. Even if it’s negotiating with your spouse over what movie to watch, you can quickly become very skilled at it. And it can even be fun.

Negotiating With Your…..Dog

lisa — Thu, 29 Dec 2011 22:02:04 +0000

Yes you read that right. How to successfully negotiate with your dog. You don’t have to speak English (or be human for that matter) to be able to negotiate. In fact, it’s said that only 7% of the words we use in negotiations have effect. 38% is our tone and a whopping 56% is our facial and body language. Our canine companions will respond most heavily to tone and body language.

Below are examples of basic negotiating terms and how they apply to successfully bargaining with your pup.

COMMON GOALS

The first thing to realize is that you and your dog generally have the same goals. Whether it’s eating, playing, sleeping or pooping, you’re both on the same page. Phew. It’s much easier to go into negotiations with that in mind. And it’s good to always remember-

THE GOLDEN RULE

Yep. That age old adage of ‘Do unto others as you would have them do unto you’. Put yourself into your pup’s shoes. When you have a crazy chocolate craving and bust into your kids leftover Halloween candy, would you like your dog yelling at you and putting you in a time out? Have a little patience. A canine-human relationship is a long and rewarding one.

INTEREST BASED NEGOTIATING

You both have an interest to succeeding in these negotiations. For example: your pup loves to bark—or talk. He talks to everyone. The mailman, your kid’s friends, the squirrel that teases him through the window every night. You, want some peace and quiet. Even for a few hours. Your negotiations are beneficial to you both. This helps to know that both of you are not making outrageous requests. And it helps to compromise a bit. Maybe your pup isn’t getting outside enough? Taking him for a walk or to the dog park can let out built up energy. In turn, let him know that barking at 10 at night is not acceptable. What strategy will work though? Below are two approaches. One is great, the other not so great.

REINFORCEMENT PRINCIPLE

The idea behind this principle is positive reinforcement. Because dogs respond to our tone and facial/body language, it’s important to let them know when they do something good. If they perch on the couch, ready to give the mailman an earful, firmly say their name. When they look at you, indicate for them to get down. If they listen, then smile or nod your head. Give them a head scratch and say some positive words. Dogs love to be rewarded.

RED HERRING

This technique involves falsely misleading the other. If you take a treat out, and tell your dog to come down from the couch for a treat, and then don’t give it to him, this is a red herring. It will build distrust between you and your pooch. Not a good idea.

WIN-WIN

The ultimate goal is for you both to win. And this can be achieved with small sacrifices. For example: you want to feed your dog healthy and nutrient packed food. Your dog wants to eat steak and lobster. To keep your pup from digging out last night’s dinner from the garbage because theirs was just too earthy, try giving him a doggy treat in the morning for a few days. Then, if he still tears through the garbage, don’t give him one that next morning. Dogs are smart. He’ll figure out that being naughty with leftovers means no treat. You get to keep feeding him the healthy stuff, and he gets a tasty morsel.

Negotiating an Insurance Claim

lisa — Mon, 26 Dec 2011 20:19:30 +0000

You never saw it coming, that SUV running the red light. And now you have a totaled car, a stiff neck and mounting medical bills. Then, the letter comes: The insurance settlement letter. And let’s face it, it’s low.

What do you do now? What can you do? There are some things to keep in mind while negotiating with an insurance adjuster.

HAVE A REASONABLE AMOUNT IN MIND

What do I mean by reasonable? If you totaled your Mazda and are asking to replace it with a Mercedes, that’s what I would call unreasonable. On the other hand, if you sustained an injury that left you out of work for 3 weeks, then tally the amount of lost income and include that in your price. They consider it fraud if you ask for an ungodly amount that is obviously not right. And you don’t want to be transferred to the fraudulent claim department.

ITEMIZE THE PRICE

Once you have a price, break it down. Write down exactly what you are asking reprieve for. And have receipts, documents, doctor’s bills etc. All of this adds ammunition to your counter offer. And you can make copies and send in with the letter. The adjuster will know that you are serious and well organized.

WRITE THE DEMAND LETTER

With all this in hand, write your demand letter. Be sure to ask for an amount a bit above your desired price (to give you wiggle room). Put all the info you gathered into it, justifying your price. Don’t be scared to include an emotional justification too (especially if you had kids in the car, your grandmother or a pet).

ASK AWAY

When you receive a counter offer, don’t be scared to ask the adjuster to justify their offer. And make note of it. There might be reasons you are unaware of that make the price a bit lower. It doesn’t mean you have to give in, but you could lower your fixed price a smidgen, therefore bringing you both closer to settling.

KNOW THE LIMITS

Every policy has payout limits. Know them and you may ask to receive the limits (especially if your desired number is close to them). Or the adjuster may offer you the Policy Limits. Once you accept, though, the other policyholder is then released of any further claims.

HIT A WALL

If the negotiations have hit a wall, it may be time to move into mediation, arbitration or litigation. Sometimes you can’t come to agreement and need outside help.

KNOW THE LAW

The Statute of Limitations varies upon states, but most have a 1-3 year time period to either settle or sue. After that time, the claim is dead. So you want to settle quickly.

*You both want the same thing: to settle for a reasonable amount. It can help to point that out right away to the adjuster to set the atmosphere of collaboration. After all, you have enough to deal with and ensuring a smooth process means one less stressful thing on your plate.

Negotiating a Lower Cell Phone Bill

lisa — Tue, 20 Dec 2011 21:54:04 +0000

What do texting fees, usage fees, data plan fees and minute fees have in common? The ability to give you a headache! Well, that can be true but I was thinking more along the lines of a cell phone. With so many plans out there and phone companies advertising like it’s going out of style, it can be hard to know if you’re being ripped off or getting a deal (especially when you’re looking at your own cell bill and seeing all the fees racking up to gigantic proportions).

Surprisingly, you can negotiate with your current phone carrier. There are a few things to keep in mind when making the call. It pays to be prepared. Especially since most customer service people for cell phone companies can be very skilled at bargaining.

HOMEWORK

Do some homework on the internet. Check out the going rate from 3 different companies. If it’s cheaper than your current plan, you need this info to use as ammunition.

SWEET AS SUGAR

The old saying of catching more flies with honey absolutely applies with negotiating. When you call the company, keep your calm and be polite. That doesn’t mean be a pushover (you need to be firm) but decent courtesy will put you both at ease.

LEADING QUESTIONS

Make sure your questions don’t allow them room to say yes or no. They need to be leading questions. Instead of “Can you give me a lower rate”, say “I’d like to hear about a cheaper plan.”

SAVE THE DRAMA FOR YOUR MAMA

You don’t need a long winded sob story. Be direct. Tell them with the harsh economic times, you simply can’t afford the bill. Ask to hear about a lower rate or package. If they decline, then follow the next step. If they agree, then commence a happy dance.

BRING OUT THE BIG GUNS

With all that handy research in hand, inform them that company x,y and z have lower rates. You want them to match it. If they refuse, then you can drop the ‘c’ word: Cancelation.

CUSTOMER RETENTION

When you ask to be transferred to the cancelation department, you actually want to be transferred to what is called the ‘customer retention’ center. These guys are responsible for trying to keep you as a customer. After all, it is far more expensive to try and get a customer to replace you with then to keep you. These guys generally try and lure you with free perks etc. Stick to your guns and ask for a matched rate.

NUMBER CRUNCH

If the cell company just won’t budge, look at your contract and see how much your early cancelation fee is. Many times, the savings you’ll get with a different company more than make up for it. It may be worth it in the long run to cancel. And you can certainly let your current provider know that as a last ditch negotiation effort.

There is no reason you shouldn’t be getting the best deal out there for your cell phone. And especially if you’ve been with your provider for years, they should value you and want to keep our business. (And if they don’t, then you are better off without them.) Potential savings are anywhere from $25-$50 a month. That’s an extra $300-$600 a year! What would you do with the extra cash?

How To Negotiate On Craigslist

lisa — Thu, 15 Dec 2011 18:38:13 +0000

You’d have to be living under a rock (or in Amish country) to never have heard of Craigslist. Craigslist is a great platform to find jobs, houses, people and buy/sell items. Especially now, when times are tough, getting a deal is incredibly important. And with an estimated 40.8 million users every month, there’s really no better place to peruse.

So how do you negotiate with an unseen seller? There are many ways to go about it. Think of it as a 3-phase process.

Phase 1- Before The Offer

*Do your research. See what other people are offering your desired item for. This gives you great ammunition when bargaining.

*Have a strict budget. Even taking out a set amount of cash means you are less likely to waiver on your price.

*Look for ‘By Owner’ sales instead of ‘Dealers’. Your odds of negotiating down a price are greater.

*Find ads that say ‘Moving Sale’. These people are likely more desperate to get rid of their stuff and therefore more likely to take a lower price.

*You can take a risk and wait a few days after the ad is first posted. If it’s still available, there’s a good chance they are getting antsy to get rid of it.

Phase 2- Make The Offer

*Start by writing the seller an email expressing interest and asking a few questions about the item. And be friendly. Many times, if their item doesn’t sell, they will remember your email and offer it to you at a greatly discounted price.

*If the item is what you want, make an offer. But make sure to offer 10-20% lower than your max price. This will give you some wiggle room to negotiate with.

*Offer Cash. Many people require cash only but always indicate in your offer that you will be paying with cash.

*Be available to pick up. If, in our offer, you indicate that you can pick up the item you can potentially beat out a higher offer that does not have the means to pick up. Especially on larger items that require a truck. It’s less hassle for the seller.

*If they counter back, let them know that there are several other similar items you are looking at that are lower priced. And if you can, include links to them. This gives your offer more weight.

Phase 3- Waiting……..

*Give them a day or so after your offer. If you don’t hear back, send a nice email inquiring if the item is still available.

*Don’t put all your eggs in one basket. Find other options and make offers on them too. If all say yes, then you pick and choose which is best.

Negotiating on Craigslist can be fun and something to master. A lot of people don’t think they can succeed, but you can! As long as you avoid scammers and keep in mind there are thousands of things for sale, the whole process can be enlightening and beneficial to your wallet.

Body Language and Negotiating

lisa — Mon, 12 Dec 2011 20:20:39 +0000

Ok- you’re in a room negotiating with people far older and much wiser than you. No matter how much you pump yours elf up, let’s face it: they will eat you alive. What are you to do?

For starters take a few deep breaths, sip some tea and remind yourself that you deserve what you’re asking for. When you can see straight again, know that you have a secret weapon. Oh yes, the weapon of body language. By knowing what your body is conveying, and also the other person’s, you can quickly gain the upper hand. Body language is tied to our thoughts, not so much our words.

Below is a list of hints that will guide you in knowing what the person you’re negotiating with is thinking. By making yourself familiar with them, judging and sizing up your opponent can become second nature.

Hand On Cheek vs. Hand Under Chin

When you’re speaking your case, if they put their hand on their cheek, then they’re absorbed and interested in what you’re saying! Keep it up.

However, if their hand is under their chin (holding up their head) generally they are bored and you’ve lost their interest. Try quickly to gain it back.

Chin Stroking vs. Lint Picking

When you begin testing the waters and start broaching the heart of what you are negotiating for, watch the other person. If they start stroking their chin, they are about to make a decision. If they are looking at you in the eye, they are seriously considering your proposal. Again, this is a good sign so pay attention!

On the other hand if they start picking at invisible lint on their clothes, you’re in muddy waters. Generally this signifies that they disagree or disapprove with what you’re saying but they feel hesitant to voice it. This is a great time to ask them how they’re feeling.

Tilting vs. Scratching

Alright, you’ve laid it all on the table (in a very gracious and charming way of course). As you are wrapping it up, the other person tilts their head as they’re listening. This is a great sign! They are engaged and interested. Tilt your head back. This is a non verbal sign that you are both in agreement.

Wait. They have an itch. Their ear, nose, neck. Wow they are really itchy. Usually, scratching is a sign of deceit. It deliberately breaks eye contact by performing a seemingly normal function. It’s a tricky one. This is usually a good time to ask a direct and forward question. One that they can’t side step by having a convenient scratch.

Women vs. Men

Do men and women negotiate differently? You betcha. One of the biggest differences? Head nodding. Men tend to nod their head while negotiating only when they agree. Women, though, will nod their head to acknowledge that they are listening. But it doesn’t necessarily mean they agree. So it’s best to ask rather than assume someone agrees with what you’re saying.

Aside from being extremely valuable in negotiations, reading body language can be really fun. You will start to see how much someone’s gestures reveal what they are really thinking.

“What you do speaks so loud that I cannot hear what you say” Ralph Waldo Emerson

5 Unique Things To Negotiate

lisa — Thu, 08 Dec 2011 17:30:20 +0000

When you think of negotiating, what comes to mind? A car, a house or maybe a salary. While it’s pretty common to negotiate for these things, there are a whole slew of other things you can bargain for. In these rough economic times, people’s willingness to purchase has gone down but the prices have not. That doesn’t mean you can’t negotiate a price you feel is unfair. Below is a list of deals you can negotiate that you might not have thought of.

Consumer Goods. If you find an article of clothing with a loose string or a tub of sour cream that is about to expire, find a manager. Tell them the product has less value than the others and politely ask for a discount. You’ll be surprised at how many times they will say yes. Especially if you tell them you have been shopping there for years.
Hotel Rates. Hotels are highly competitive. If you found the one you’d like to lodge at, call them up. Ask what their rate is for a standard room. Then ask to be upgraded for the same price. Or, you can take a risk and when you check-in, ask to be upgraded for free. I did this in Mexico and was upgraded to a room on a lazy river…for free. It’s definitely worth asking!
Cosmetic Surgery. Cash definitely rules when dealing with plastic surgeons. If you can pay up front or even start a payment plan months in advance, you can save up to 25% with many surgeons. Also, ask for a discount or ‘credit’ for referrals. Most are willing to offer you that for expanding their business.
College Tuition. If you have multiple kids at the same college, ask for a sibling discount. Or, if you’re grades are exceptionally good, ask for additional scholarships. Make an appt. with an advisor and tell them that you deserve financial help and that you are worth it. Many times colleges are willing to negotiate.
Parking tickets. It’s irritating to come out to your car and find that little ticket tucked under your windshield wiper. Then you look and its $42! When did the prices for fines go so high? Luckily, you can negotiate to get it lowered. And they now let you fax in a written letter to appeal. Write a polite letter stating that you have a stellar driving record and explain why you got the ticket. Ask to get it reduced or removed. A lot of the time, they will do it.

With finances tight, there’s no reason you shouldn’t be able to bargain lower prices. You’re stress will be lighter and your wallet fuller. And that is a great thing.

“Life is the greatest bargain- we get it for nothing.”

Negotiating Your Salary

lisa — Mon, 05 Dec 2011 19:57:54 +0000

Have I freaked you out yet? Are your hands turning clammy? Reaching for a candy bar and ready to escape into your happy place? I don’t blame you. Negotiating a salary is right up there with getting teeth pulled and doing your taxes. However, if done correctly, you will be a happier (and richer) employee.

The first thing to consider is ‘What are people in my field making?’ Do your research. It’s not hard to get a general idea of salary averages by looking up job postings. Then, compare it to what you’re making. If you are making less than average, you can use this data as ammunition when you enter the arena with your boss.

Next, write down exactly what you want and why you should get it. This will help you organize your thoughts. Some things to include:

*Your bottom line. Write the lowest amount you want. Then write the amount you will propose (which should be higher than your bottom line). This will give you wiggle room.

*Other perks. Want benefits? Include that in the negotiations. Want paid vacation? Write it down too. And one of the best perks? Education. Asking your employer to pay higher education is invaluable. Not only will it widen your knowledge of your field, it will give you a leg up on other employees when you want to move up in the company.

*Talk about what you deserve and NOT what you need. Have you brought in a profit? Tell them. Widened their client base? Let them know. Do not talk about how you need the money to pay child support, your mortgage, or your light bill. Let them know your worth to the company, not your financial hardships.

*Extra experience. If you’ve taken seminars, courses or workshops in your field, that gives you worth! It shows your dedication to the company and desire to learn more. You need to promote this.

Once you’ve gotten a clear and strong case written down, practice saying it to a friend or family member. This may sound silly, but if you can say it out loud before pitching your case to your boss, it will be much easier on the day. And ask for feedback.

And finally, be willing to compromise. If this job is really worth it, know that you need to be flexible. Sometimes, enjoying your work environment can make a huge difference in where you choose to work. Just as important as knowing your worth, you should know your employers worth too.

“Find something you love to do and you’ll never have to work a day in your life.” Harvey Mackay

How To Negotiate Your Dental Bill

lisa — Thu, 01 Dec 2011 21:24:13 +0000

It is estimated that over 30% of Americans do not have dental insurance. That’s more than 100 million people! With unemployment high, inflation up and an economy in crisis, dental insurance can tend to be at the bottom of the priority list. But you can only put off seeing one for so long. And when your tooth gets infected or your son has a painful cavity, there isn’t much choice but to make an appointment.

Is it possible to negotiate the price of your visit? Yes! One study found that only 10% of Americans negotiate their dental bill. And of those, 64% are successful. So how do they do it? Most likely they are uninsured. Dentists already take a cut from insurance companies and are less likely to give you a discount. But if you’re uninsured, you have some wiggle room. And make sure to ask these things before your visit, when you can still take your business elsewhere.

ASK FOR AN INSURED PATIENT’S PRICE

You have every right to ask for the same price that the dentist gets from the insurance company, which is usually 10-15% less. Try asking, you may be surprised what they say.

PAYMENT PLAN

Ask your dentist if they will give you a 12 month payment plan, interest free. They will still be getting a full price for the work but you can split it up, easing the burden on your wallet.

PAY IN FULL= DISCOUNT

Many dentists will give you up to 25% off the bill if you pay in full at the time of the visit. If you have the ability to pay up front, it can save you cash in the long run.

REFERALLS

Ask your dentist if they’d be willing to give you a discount or ‘credits’ for referrals. This works really well if your dentist is just starting out and trying to build up their practice.

BARTER

Maybe you have a flooring business or are a painter. Try asking for a trade. “I’ll redo the floor in your office for a new crown.” This happens a lot among friends and can certainly be applied to the medical field.

All of these methods have worked. But if negotiating with your dentist makes your stomach hurt, consider going to a dental school. They are always cheaper and the students are supervised by a superior. Either way, saving money is certainly a reason to smile.

Negotiating Credit Card Interest Rates

lisa — Tue, 29 Nov 2011 19:51:12 +0000

With so much negative energy surrounding banks and credit card companies, it’s easy to bury your head in the sand and try to ignore those pesky late notices for your credit card bills. And with all the ABC banks being bought by XYZ, you’re flooded with letters and explanations of why your interest rates are changing. It’s overwhelming.

However, it’s not a totally bleak situation. You do have the power to negotiate the interest rate down. Even though it’s true that banks and credit card companies are more worried about recouping their money with high interest rates than keeping customers happy, you can certainly make every attempt to lower the rate. Below are a few tips to keep in mind.

Know the going rates. Do your homework and research the rates of other banks and credit card companies. While you’ll most likely not get a 0% rate, you can very well get 10%. And with many card rates at 20% or more, that drop will save you hundreds of dollars.
Ask for a modification. Many banks are allowing you to ‘modify’ your debt. This means lowering the interest rate and closing the card. You won’t be able to borrow against it anymore, but it is well worth it to get the rate lowered by 10%.
Have another offer in your hand. If you start the conversation off with “I have another offer, can you match it”, gives you an edge.
Be willing to give. If you explain to them that dropping the interest rate to 10% means you can pay an extra $20 over the minimum payment each month, they’ll know the benefit of dropping the rate. And you will be closer to paying that debt off.
Don’t be afraid to throw down the ‘B’ word. That’s right. Bankruptcy. If you calmly explain to them that you are financially struggling and if they don’t lower the rate there’s a good chance you’ll have to claim bankruptcy, you’ll be surprised at the reaction you get. The banks and credit card companies do not want you to file bankruptcy because they get nothing. It’s better to keep you making payments.

Feeling overwhelmed by debt, while an awful feeling, is very common right now. Many people are in the exact same situation. Knowing that you can work with these companies to ease some of the burden is a relief. “Give your stress wings and let it fly away.” Terri Guillemets