Or how to Make Bargaining a Gift for Both
In the world of negotiations, there’s a fine art to getting what you want without leaving the other party feeling like they’ve been shortchanged. A few years ago, my friend Dana demonstrated this artistry when he managed to snag an Audi A4 for the price of a Volkswagen Golf.
You heard that right – an A4 for the price of a Golf!
How did she do it? Let’s dive into the story and extract some valuable lessons in negotiation along the way.
Step 1: Research and Preparation
Dana didn’t walk into the dealership blindfolded. She did her homework. She knew the dealer price, wholesale price, current promotions, models that were on the way out and the typical discounts Audi dealers were willing to offer.
Step 2: Clarity of Intent
Dana went into negotiations with a clear idea of what she wanted – that Audi A4 at a specific price. Having a precise target in mind helped her steer the negotiations towards her desired outcome.
Step 3: Patience
Negotiations can be a waiting game. Dana spent multiple weeks in negotiations, showing no signs of impatience or desperation. She understood that rushing could sabotage her chances of getting the deal she wanted.
Step 4: Express Interest
Throughout the negotiation process, Dana consistently expressed her interest in the car at the desired price. This signaled to the dealer that she was serious about the purchase. This may seem counterintuitive at first, but showing commitment can actually work better than a cold “Oh, I don’t really want it” approach if you want the other side to work with you.
Step 5: Collaboration
Instead of viewing the negotiation as a battle, Dana collaborated with the salesperson. Together, they explored various avenues for discounts – from manufacturer incentives to trade-in deals, prolonged warranty, free tires and seasonal promotions.
Step 6: Negotiation Power
Besides the Information she had collected and the relationship she had built, Dana also created leverage in numbers by timing her purchase with two other friends. Presenting the potential of selling three cars instead of one created hug purchasing power on her side, and an equally huge incentive on the car dealer’s side to get the deal.
Step 7: Relationship Building
Dana leveraged her existing relationship with the dealership. Having purchased her previous car there, she highlighted her loyalty and hinted at potential future business.
Step 8: Win-Win
Ultimately, Dana achieved a win-win scenario. While she walked away with an Audi A4 for the price of a Volkswagen Golf, the car dealer also benefited. Selling three cars in one go significantly boosted the salesperson’s commission (Dana encouraged him to negotiate his commission with his boss, and he got an increase to almost double his normal commission too!).
In essence, bargaining isn’t just about driving a hard bargain; it’s about finding creative solutions that satisfy both parties. By following these steps – from thorough research to fostering collaboration and maintaining patience – you too can turn bargaining into a gift for both sides.
So, the next time you’re in a negotiation, remember: it’s not about who can outwit the other, but rather how you can work together to find a solution that leaves everyone feeling like a winner.
Whether it’s for your new car or your client’s contract – the power is with those who collaborate!
To your negotiation success!
Your Negotiation Whisperer
