NEGOTIATING

How to strengthen your negotiating position.

By Gary Dichtenberg

In buying and selling situations it would seem logical that a buyer is in a stronger position than a seller. It is the buyer, after all, who is choosing what to buy, while the seller, after presenting his case, waits anxiously for the final decision. If the buyer is in the decision-making driver's seat, then why is it so common for the buyer to be anxious and feel that he or she is in a weaker position than the seller?

Think about buying a new car. Unless you are armed with wholesale price reports, Blue Book prices, and other statistical data (most of which is readily available) about various makes and models, you're forced to take the salesperson's pitch at face value. Most people's discomfort with car dealers stems from their own concern about not knowing what to believe.

Psychologically, sellers (of cars, hotels, contracts, et cetera) can act proud and sure of the product or service. They have lots of information on its features and benefits as well as about its value over a competitive product. Buyers, on the other hand, are anxious about making a bad decision, doubt their own judgment, and often lack useful information. In order to offset the powerful position of the seller, the buyer needs to be better quipped with good, hard facts, and with some negotiation techniques

• Know what you want. The clearer you are about what you want and are able to afford, the easier your negotiation. Studies indicate that, when negotiating, the party who can most clearly articulate his or her position and the reasons supporting that position has the best chance of winning out.
  
• Take your time. Leave yourself plenty of time for comparison shopping. The earlier you start gathering information, the better. Many deadlines are negotiable in them selves. Try to buy more time if you need it.
  
• Don't take the first offer. When given a good offer, thank the other party and show interest, but play the reluctant buyer. Try saying: "Well, that sounds like a good price, but I was wondering if you could do a bit better." If the seller thinks a potential sale is within grasp, he or she is more apt to come down a little on a price in order to close the deal.
  
• Dumb and helpless may be better than smart. We all tend to be helpful to people who need us. If you act as if you don't know much about the particular service you re interested in, you then have the freedom to ask any kind or number of questions.
• Break down package pricing. While packages are a good way to save money, it is crucial to know what they contain. By breaking down the package into components, you can negotiate by element.
  
• Avoid the "Great Deal." Products or services that sound too good to be true are usually just that. Watch out for deals that appeal to greed over reason. Great deals often have absurd limitations that eliminate most users.
  
• Ask questions. When buying something that has wide variations in pricing, ask questions.
  
• Start low. Americans aren't good hagglers: we simply don't have much experience at it. Typically we'll determine a fair price, then make the offer. Don't start out at your bottom line: the final price is nearly always higher. Start low, and remember that your offering price is your starting point, and the price can only go up.
  
• Negotiate options. Don't limit your negotiations to money only. You can negotiate for more people or extra days at the same cost, free lunches, extra food at no cost, a longer payment period, or free delivery.

Negotiating can be a fun, empowering, and enjoyable experience. After a while you will begin to get the feeling that a whole lot more is negotiable than you thought. The more information you have going in, the more creative you can be with options, and the more mutually satisfying can be the deal you and the seller create.