In You Want What? we explored merchants using the foundational principle of asking for more than one expects to get.
Merchants seasoned in bargaining with vendors understand that asking for more than the expect to get can actually result in getting just exactly what they asked for.
This tactic can also be used to see how experienced their sales rep really is, and to test how solid (inflexible) the terms of the deal really are.
For a Funding Pro, this negotiation principle is an excellent tool as well.
Henry Kissinger once said: “Effectiveness at the conference table depends on overstating one’s demands.”
President Trump has deployed this trusty tool often throughout his entire career, and especially now on the world trade stage.
Three key points for Funding Pros to think about when asking for more than they can get:
- The less you know about the other side, the higher your initial position should be.
- Your assumptions may be off. Distinguishing needs from preferences is still in process, and the other side may give you more than you think.
- In new relationships, you will appear more cooperative and succeed in creating common ground if you’re able to make larger concessions from your initial position. The more information you get on the other side, especially about their needs, the more you can modify your position to get a deal done.
Unbelievably outrageous opening positions are all around us, do you see them now?
In 1996, Sudanese rebels took Red Cross workers hostage and demanded $100 million for their release. Congressman Bill Richardson, who later would become our ambassador to the United Nations, rode in to negotiate their release and save the day.
Ignoring the guns pointed at his face, Bill went back and forth with the rebels. The demand quickly dropped to $2.5 Million. Within a few days, he eventually secured their release for five tons of rice, four old jeeps and a couple of old radios.
Ask for more than you expect to get.
How can you best put this tool to work?
Happy Mother’s Day to all the moms out there!