A roofing company waived a $156 inspection fee for me this week.

And it wasn’t an accident, I asked for it.

I used to fear negotiation until I learned how do it and the small wins can really add up.

Here’s some simple tips so you can do it too: 🧵
There’s lots of resources on negotiation and you can gather as much knowledge as you wish.

But you don’t have to complicate it.

You can save time and start accumulating wins right away by using a simple framework.

There’s 9 key steps 👇
Winning Negotiation Formula

1. Preparation
2. Mindset
3. Be likeable
4. Ask first
5. Offer in multiples
6. Frame the offer
7. Don’t be a hero
8. Be too kind
9. Build social capital

How to apply it 👇
1. Preparation

When you fail to prepare you’re preparing to fail.

Time spent preparing should reflect the stakes. The higher the stakes, the more you should prepare.

But how you prepare matters and there’s 3 keys:
> Know your worth.

Don’t be bashful here. You do great work and you’re worth it.

Be clear why the other party needs you.

This will give you courage to stand your ground.
> Know what they want. Know what you want.

Jotting down your best guesses as to what matters to them and what matters to you will help you get a good outcome.

How can you make better guesses?

Rely on similar negotiations you’ve had in the past, for example.
> Anticipate resistance.

How are they likely to respond to your offer?

Come up with as many probable responses as you can.

Then generate your rebuttals in advance.

Role playing can help uncover blind spots.
2. Mindset

Your frame of mind impacts outcomes.

When you negotiate in an anxious state you are more likely to concede too early.

In an experiment, participants who listened to Psycho music did worse in negotiation than those who listened to upbeat music.

So what can you do?
> Focus on your aspirational goal.

Think about your ideal outcome and think about past negotiations that went well for you.

Your ideal outcome must also be based in reality.

Make sure you use data to confirm your ideal outcome.

For example, can they afford it?
> Stay calm when they don’t.

If things get heated, use this phrase to calm things down:

“I’m sorry that happened. Let’s try and find a way to fix it.”

Things get particularly heated when someone perceives themselves to be losing something.

Fear of loss > thrill of gain
3. Be likeable

There’s 3 quick ways to do this.

> Find common ground in every negotiation.

Similarity is the strongest basis for liking and attraction that psychology has ever known.

Like the same sports team? Talk about that.

> Use appropriate humour
> Ask a lot of good questions

Data shows great negotiators ask twice as many questions as average negotiators.

You should prepare some questions in advance.

You should also listen intently during the negotiation to ask relevant ones in the moment.
4. Ask first

This is the most important step.

If you do nothing else, just do this.

It’s also the most counter-intuitive part of negotiation.

You’re conditioned to hold your cards tight and respond to their first move but that doesn’t work.

Here’s why:
It fails to anchor the negotiation on your terms.

Anchoring is a powerful psychology term.

The anchoring effect is a cognitive bias that describes the common human tendency to rely too heavily on the first piece of information offered.

How do you anchor properly:
5. Offer in multiples

(We’re getting more complex so only try this after you see success with step 4)

This means offering more than one solution.

For this to work, you must be indifferent to whatever option they choose.

Here’s why offering multiple options works:
It makes you appear more flexible, more cooperative, and more interested in solving the problem.

It also makes you seem more trustworthy and likeable, which you are, right? 😁
6. Frame the offer

This is for advanced negotiators and it’s newer science.

Here’s how you do it:

Once you’ve put your offer(s) on the table ask this:

“How does that price compare with your budget?”

Here’s why it works: 👇
It tempers their expectations.

It shifts their mindset from their aspirational or ideal outcome to an outcome they can live with.

That’s some powerful behavioural psychology, hey?
7. Don’t be a hero

Avoid self-praise and using language like “you got a great deal” or “I’m being more than fair here.”

It offends people and puts the other person in an inferior position.

Avg negotiators self-praise 11 times/hour vs 2 times/hour for the best negotiators.
8. Be too kind

Err on the side of being too kind in negotiations vs not kind enough.

You might get taken advantage of on occasion but this will create more goodwill in relationships than it takes away.
9. Build social capital

Make it a habit to spotlight other peoples great work.

“Like” people’s posts, nominate people for awards, give people credit.

It feels good but it also creates a community of people who will be eager to help you throughout your life.
I’ve used these steps to negotiate everything from free gym passes to discounts from roofers.

Let me know how they work for you.

And if you want to deepen your learning, this conversation with negotiation expert Alison Fragale won’t disappoint.
And to explore other leadership and business building topics, you can scan our library of Unleashed episodes.

Every episode features the world’s most respected thought-leaders and best-selling authors.
Add to #4

> Make your offer first (it’s scary).

> Set the anchor higher than the outcome you’d accept.

If you’d be happy with $10 for a used book, set your anchor at $18, for example.

Caution: your anchor must be believable or you’ll ruin credibility.
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