One of the best books on sales and negotiation I've read is – You Can Negotiate Anything by Herb Cohen.
It's so good that I bought a few copies and gave it away to business people.
There were many gems in the book. But I'll summarize three important variables you need for any sales negotiation.
Power
Power can come from various sources – expertise, resources, or even perception. It’s not about how much power you actually have, but what the other party perceives you have.
Example: Imagine negotiating a salary. If you have multiple job offers (or if the recruiter thinks you do), you will hold more power because they think you have alternatives.
On the other hand, if the employer senses you are desperate for the job, they will hold more power – and offer you less.
Time
When negotiating, the person with less urgency usually has the upper hand. Give yourself time and be patient – allowing you to see how the other party reacts.
Do you realize that decisions are also always made in the last 5 minutes of a 1-hour negotiation?
Whoever can wait longer, typically has the advantage.
Example: Imagine a property deal. A buyer who is patient and is not in a rush to close can negotiate a better price. A seller who is under pressure to hit their targets and sell quickly may be willing to lower the price to close the deal.
This is also why people tend to take action when there’s a time-limited sale.
Information
The most important variable in negotiations. The more you know about the other party’s needs, interests, wants, limitations, and desires – the better position you are to create a favorable outcome.
The less they know about your true desires and constraints, the stronger your negotiating position becomes.
Example: Let’s say you’re negotiating to buy a car. If you know the market value of the car, the incentive for the dealer, and recent sales data – you have the advantage.
The more information you have, the more you can challenge their pricing and negotiate a better deal.
Like a masterclass on sales
But why even bother learning sales? You're not a salesperson, right?
WRONG.
Everyone is in sales.
I negotiated the price for an event space. That's sales. My wife convinced me to go on a trip with her. She sold me! My daughter insisted I buy her a snack and cried loudly when I didn't. Damn, that's pressure sales.
