Some numbers appear more immovable than others. The biggest thing to remember is that numbers that end in 0 inevitably feel like temporary placeholders. But anything you throw out that sounds less rounded – say, $37,263 – feels like a figure that you came to as a result of thoughtful calculation. –Never split the difference, p.132 Continue reading When you do talk numbers, use odd ones
After you’ve anchored them high, you can make your offer seem reasonable by offering things that aren’t important to you but could be important to them. Or if their offer is low you could ask for things that matter more to you than them. –Never split the difference, p.132 Continue reading One of the easiest ways to bend your counterpart’s reality to your point of view is by pivoting to nonmonetary terms.
Instead of saying “I’m worth $110,000,” Jerry might have said, “At top places like X Corp., people in this job get between $130,000 and $170,000.” That gets your point across without moving the other party into a defensive position. Research shows that people who hear extreme anchors unconsciouly adjust their expectations in the direction of the opening number. –Never split the difference, p.131 Continue reading When confronted with naming your terms or price, counter by recalling a similar deal which establishes your “ballpark,” albeit the best possible ballpark you wish to be in.
You should let them start especially when you don’t know the market. That’s because neither side has perfect information going to the table. By letting them anchor you also might get lucky: I’ve experienced many negotiations when the other party’s first offer was higher than the closing figure I had in mind. That said, you’ve got to be careful when you let the other guy anchor. You have to prepare yourself psychically to withstand the first offer. If the other guy’s a pro, a shark, he’s going to go for an extreme anchor in order to bend your reality. Themn, … Continue reading In monetary negotiations, let the other side name a price first.
By anchoring their emotions in preparation for a loss, you inflame the other side’s loss aversion so that they’ll jump at the chance to avoid it. Great example of it on page 128 & 129. –Never split the difference, p.128 Continue reading Loss aversion: To get real leverage in a negotiation, you have to persuade them that they have something concrete to lose if the deal falls through.
It’s simple and clear and sets you up as an honest dealer. With that statement, you let people know that it is okay to use that word with you if they use it honestly. –Never split the difference, p.125 Continue reading Early on in a negotiation, say, “I want you to feel like you are being treated fairly at all times. So please stop me at any times if you feel I’m being unfair, and we’ll address it.”
If you find yourself in this situation, the best reaction is to simply mirror the “F” that has just been lobbed at you. “Fair?” you’d respond, pausing to let the word’s power do to them as it was intended to do to you. Follow that with a label: “It semms like you’re ready to provide the evidence that supports that,” which alludes to opening their books or otherwise handing over information that will either contradict their claim to fairness or give you more data to work with than you had previously. Right away, you declaw the attack. –Never split the … Continue reading Someone says “We’ve given you a fair offer”
Answer: ” Okay, I apologize. Let’s stop everything and go back to where I started treating you unfairly and we’ll fix it.” –Never split the difference, p.124 Continue reading Someone says ” We just want what’s fair”
Most people make an irrational choice to let the dollar slip through their fingers rather than to accept a derisory offer, because the negative emotional value of unfairness outweighs the positive rational value of the money. –Never split the difference, p.123 Continue reading If people feel they are given an unfair offer, they would rather decline it altogether.
Let me tell you about the ultimatum game, it goes like this: After the students split into pairs of a “proposer” and an “accepter”, I give each proposer $10. The proposer has to offer the accepter a round number of dollars. If the accepter agress he or she receives what’s been offered and the proposer gets the rest. If the accepter refuses the offer, though, they both get nothing and the $10 goes back to me. No matter what slection they made, they find themselves in a minority. The splits were all different, $6/$4, $5/$5, $7/$3, $8/$2, etc. In something … Continue reading There’s no such thing as fair.
Roadmap to Billions 