How To Negotiate Anything
Negotiating is a proficiency most of us need to practice. Negotiating is a skill not only desirable in lawyerly mediations or real estate closings, but in everyday life.
Finance guru and author Herb Cohen says the process will be much easier if you keep three crucial variables in mind: Power, Time and Information. Over at personal finance weblog Get Rich Slowly, J.D. Roth breaks down Cohen’s classic negotiation advice.
J.D. Roth says he has become passionate about effective negotiation as he has seen first-hand just how much money you can save – and earn – by taking the time to negotiate
In his book on the subject of negotiation, Cohen says to some degree we negotiate with lots of people every day, from family members to co-workers and friends. If you bear these three factors in mind, however, you stand a lot better chance of a successful outcome for everyone.
The three crucial negotiating variables
In every negotiation, Cohen says, there are three crucial variables: power, time, and information. You can hold the best hand at the table, but if you lack these three things, you’re still going to lose.
Power is the ability to get things done. If you can create competition, for example, you’ll have more power during negotiations. Power also comes from perceived expertise or legitimacy (”she’s a famous financial guru, so she must be right”), empathy (understanding the other person’s side), precedence (”this is how it’s always been done”), persistence, attitude, and persuasion. Think about how you can demonstrate these qualities in your negotiations.
Time is a key, but often overlooked, element. In negotiations, the side with the most time generally has an advantage. Patience pays. No matter how pressed you are, you should always keep your cool, maintaining an appearance of calm. “Your deadline is of your own making,” Cohen writes. Don’t ignore deadlines, but don’t follow them blindly, either.
Information is the third crucial variable in negotiations. The more you know, the better your position. Do your research before negotiations begin. And during negotiations, act on whatever new info comes to light. Cohen is especially keen on picking up unintentional cues from the other side. Their responses, their questions, and their attitude all convey valuable information. Be patient; truly, closely listen to what is being said – and not said. So often we aren’t listening, we are forming our next response. And we miss valuable clues.
Read the full post at Get Rich Slowly for more details on how power and time play into the equation and to read up on other factors. The video is a talk from Herb Cohen from ten years ago on the subject. These tips may not work every time and in every situation, but they’re worth keeping in mind when you need to stand your ground and come to an agreement with someone.
How do you feel about negotiating? Does it bring out the competitor in you, or do you avoid it like the plague? Talk about it in the comments.
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OUCH! Are you doing this?
