Are you a skilled negotiator? This article from TechCrunch provides anecdotal evidence from entrepreneur James Altucher on how to make your negotiations work.
Here are the strategies in a nutshell:
- Have more points to discuss than the other side – make a careful list of all of the things that are important to you in the deal, and “if you have more points to discuss you can give up the nickels and keep the dimes.”
- Have a mathematical formula – if you agree on a formula for finding your end number, then you can push the discussions in your direction by providing the variable numbers that benefit you
- Have alternatives – play hard to get and make it clear that you have other options (they’ll want you more)
There are also a few extra lessons thrown in throughout the article. And they are:
- Have an invisible backup in a worst case scenario – if you mention what “The Board” wants or would have to say, suddenly you have an invisible army of support
- Bring in an “expert” – your salespeople or other experts can explain how you got to your numbers; by acting uninformed you can maintain a friendly relationship with the other side while also pushing for what you want
At the end of the day, these strategies can help to make everyone happy, which according to Altucher, really is the end goal of your negotiation.