Negotiating

One of the challenges in negotiating is knowing when you can negotiate and when you can’t.

There are some situations when people expect to negotiate. A simple example is the buying of a house. When the seller puts in their asking price the buyer then determines how much they are willing to pay and will make an offer based on that amount. They might offer that amount or they might offer less. One mistake some people make when they are making an offer to purchase a house is to assume that the asking price is always more than the seller is willing to accept. In some instances, the buyer might have to offer MORE than the asking price (this would most likely be when there are multiple bidders who really want the house).

On the other hand, if you walk into a McDonalds and want to order a Big Mac, that really isn’t up for negotiation. You either pay the asking price or you walk away. There is no negotiation (if you are ordering 500 Big Mac’s for some event, that might be negotiable).

Recently I was dealing with a marketer who wanted me to use his services for a company I am involved with. He gave me his proposal and when I told him that the price was higher than I thought the value of his services were he said he would come back with another proposal. The second proposal was for the same services for significantly MORE money. Not surprisingly, I said no and told him we were going to go in a different direction. At that point, he wanted to start negotiating on the price and services offered. I believe his logic was by setting the price very high, we would “compromise” on a price that was what he really wanted to make. The problem was, at that point, I had no interest in negotiating. He misread the situation in thinking that I would be willing to negotiate when all I really wanted was a reasonable price for reasonable services.

The challenge with negotiations is when one side makes a “take it or leave it” offer. The other side has to decide whether that is really the end of the negotiations or just a starting point. If you are wrong with this, it can end any hope of coming to an agreement

Just something to think about.

Have a great day!

Lawrence

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