A car wholesaler is asking for $15,000 for a car. The car dealer wants to buy it for $13,000. The car dealer makes an opening offer of $11,000.
An office equipment supplier is quoting an insurance agency $300 per desk. The insurance agency believes that $225 is reasonable. The insurance agency tells them they don’t want to exceed $150.
A buyer is offering a manufacturing outfit $1.60 per widget. The manufacturing outfit can live with $1.70, thus it starts its initial position at $1.80.
These are real-life examples of what small business owners engage in every day: bargaining with vendors. The lifeblood of their business’ growth depends on them finding and making deals.
Why would they act any differently with you?
But you’re a Funding Pro, their Trusted Advisor.
At first pull, you are a vendor just like the rest, and there is always a deal to be made. Trust and rapport through quality of service will have to be gained.
You got the merchant approved for $25,000! Great job.
(Merchant really thinks he needs $50,000 for their project, their objective.)
Merchant tells you that’s not enough, he needs $75,000. Sound familiar?
The merchant asked for more than he could expect to get so he can use the Bracket Technique on you.
What is the Bracket Technique?
Its’ when you ask for more than you expect to get by proposing a position that is an equal distance on the other side of your objective as their proposal. The assumption here is that you’ll meet in the middle between the two opening positions. It doesn’t always happen, but it happens often enough that merchants will deploy this on you every day.
So, does the merchant really need that $75,000 to get the deal done?
Be on the lookout for the Bracket Technique being used on you. How have you worked through this in the past to serve the merchant and get the deal closed?
Have a happy and safe 4th everyone!