Tips for Successful Negotiations
A recent survey found that women are 2.5 times more likely to have apprehension about negotiating than men. Men said the process of negotiating is like winning a ballgame, while women said the process is like going to the dentist. Don't be intimidated by the process of deal-making! Dr. Phil and his guests offer their tips for how to do it successfully:
The Principles of Negotiation:
1) Figure out what's important to the other person
2) Figure out how much you can give the other person
3) Figure out what you want and why it's important
4) Ultimatums always end negotiations
5) Never put a time limit on negotiation
Tips for Buying a Car:
A recent study shows that women will pay up to $1,300 more on a car than a man will, because they don't negotiate. What does a woman need to know and do to come in and negotiate a reasonable deal? The King of Cars from Towbin Automotive, Chop Towbin, gives his tips:
1) Research. Know what you're buying. Look it up on the Internet, learn the Kelley Blue Book cost, research other places and come in showing that you have done your research.
2) Stay calm. Don't show too much excitement. Don't let them think they can make lots of money on you.
Other tips from Chop:
- Know that a dealership wants your money and doesn't want you to leave without a car.
- Just because you love a car, doesn't mean you have to pay too much for it.
- Know you have the right to negotiate, and you should be prepared to walk away if you don't feel you're getting a good deal.
- Don't be too polite to make an aggressive offer. Men do their homework and come in ready to haggle over the price. However, men often go too low on the price and put on an act like they know everything. I would rather deal with someone who is nice and real, than someone who is out to steal money from me.
- Don't be too honest. Women often admit they have no idea what they're looking for or what things cost.
- Act confident. You can tell very easily when someone is nervous. Their body language is off, and you can tell they don't want to ask for a lesser price.
- Spend time negotiating a deal. Women tend to not like the process so they give up and get stuck with a bad deal.
- Don't be afraid to ask for a different salesperson if you are uncomfortable with the person you're with.
Five Things You Might Not Know You Can Bargain For:
Wendy Keller is the author of the book Secrets of Successful Negotiating for Women. She says everything in life can be negotiated " You just have to have the guts to ask for it. She shares five things you might not know you can bargain for:
1) Discount on damaged goods at any store
You can save 10 to 30 percent on items that have a flaw: a missing button or makeup smudge on clothing, a bruise on fruit or vegetables, a package that's been re-sealed, beaten up or opened. Ask the cashier, and if that doesn't work, ask the manager.
2) Expired coupons
Nine times out of 10, simply asking the cashier or the manager to allow you to use the coupon will get it re-activated for you "just this once" " especially in this economy. "If it's less than two years, go in and say, â€˜I'd like to have you honor this coupon,' because the store uses the coupon as an incentive to get the person in the store to buy."
3) Competitive services
Dry cleaners, carpet cleaning, gardeners, dog walkers â€¦ Any company that provides services is not the only game in town. If they have two or three more local competitors, you can negotiate anything successfully. Start the negotiations with "I am going to call XYZ and ABC providers, unless you can offer me a fantastic deal right now."
4) Upgrades when traveling
Simply by saying you could easily fly with another company next time, or by writing a letter to the company saying how much you like them and if they could make your next flight more enjoyable, you can get free upgrades. "When I came to the show, I went to the rental car station, waited in line for a hundred years and finally I said to the guy, â€˜Can you upgrade me on this for no charge?' and he asked, â€˜Well, what are you looking for?' and I picked the nicest car on the list and he upgraded me for nothing. It happens all the time but the thing is, especially women, don't realize they need to ask."
5) Any type of rent
Simply by telling the landlord that you found another place that is cheaper, they often will bend for the sale.
Wendy says women should use what they've got in negotiation. "We have a lot of natural assets. We've spent our whole lives learning about relationships and being sensitive to someone else, so you can watch this person. If someone is harried and stressed out, they're less likely to negotiate, but if you have to do it right then, you could step in and start with a joke: â€˜Oh, my gosh, I'm so glad I'm not you, having to rebook a whole plane full of people because they got their flight cancelled.' Create a rapport. Second, an important asset that women have, they can look at them with empathy and take that empathetic position. What does that other person really want? If they're a $6-an-hour clerk, what they want is to go home probably. So you make their life easier by saying, â€˜Let's just get to the bottom of this. Give me my money back. Let's try it.'"
Wendy says the amount of money you can save over a lifetime is limitless if you use her three steps:
1) Be prepared. Know what the value is. Know that they mark up the jewelry or clothes 300 to 500 percent.
2) Be positive. Walk in positive, expecting it to go your way.
3) Be persistent. If the clerk you are dealing with is a low-level person and twice they say no, that's when you ask for a manager.