Tag: Never split the difference

Negotation Mastery

It often doesn’t matter what leverage actually exists against you; what really matters is the leverage they think you have on them.

Chris Labs

That’s why I say there’s always leverage: as an essentially emotional concept, it can be manufactured whether it exists or not. If they’re talking to you, you have leverage. Who has leverage in a kidnapping? The kidnapper or the victim’s family? Most people think the kidnapper has all the leverage.. But how many buyers do the kidnappers have for the commodity they are trying to sell? –Never split the difference, p.221 Continue reading It often doesn’t matter what leverage actually exists against you; what really matters is the leverage they think you have on them.

Learnings

Be on the lookout for Black Swans

Chris Labs

In negotiation, there are those things we don’t know that we don’t know, pieces of information we’ve never imagined but that would be game changing if uncovered. Maybe our counterpart wants the deal to fail because he’s leaving for a competitor. Hypothesize that in every negotiation each side is in possession of at least three Black Swans. Always ask yourself: “Why are they communicating what they are communicating right now?” Sometimes, your counterpart might be oblivious to a Black Swan or unaware of its importance. –Never split the difference, p.219 Continue reading Be on the lookout for Black Swans

Negotation Mastery

Ackerman Bargaining

Chris Labs

It’s an offer-counteroffer method, at least on the surface. But it’s a very effective system for beating the usual lackluster bargaining dynamic, which has the predictable result of meeting in the middle. It’s 4 steps: Set your target price (your goal). Set your first offer at 65% of your target price. Calculate three raises of decreasing increments (to 85, 95 and 100 percent). Use lots of empathy and different ways of saying “No” to get the other side to counter before you increase your offer. When calculating the final amount, use precise, nonround numbers like, say, $37,893 rather than $38,000. … Continue reading Ackerman Bargaining

Negotation Mastery

In bargaining, if the other side pushes you to name a price first.

Chris Labs

Instead of naming a price, allude to an incredibly high number that someone else might charge. Ex: Once when a hospital chain wanted me to name a price first, I said, “Well, if you go to Harvard Business School, they’re going to charge you $2,500 a day per student.” –Never split the difference, p.199 Continue reading In bargaining, if the other side pushes you to name a price first.

Negotation Mastery

Get your counterparts to bid against themselves.

Chris Labs

You can usually express “No” four times before actually saying the word. 1st No: How am I supposed to do that? It has to sound like a request for help. Properly delivered, it invites the other side to participate in your dilemma and solve it with a better offer. 2nd No: some version of: Your offer is very generous, I’m sorry, that just doesn’t work for me. 3rd No: I’m sorry but I’m afraid I just can’t do that. 4th No: I’m sorry, no. –Never split the difference, p.181 Continue reading Get your counterparts to bid against themselves.

Negotation Mastery

The pinocchio effect

Chris Labs

On average, liars use more words that truth tellers and use far more third-person pronouns. They start talking about him, her, it, one, they and their rather than I, in order to put some distance between themselves and the lie. And they discovered that liars tend to speak in more complex sentences in an attempt to win over their suspicious counterparts. –Never split the difference, p.178 Continue reading The pinocchio effect