Approximately 20 years ago, I was playing a round of golf in Sacramento, California. I’m not a good golfer however on that day I putted like a pro going round the 18 holes in only 28 putts, something I’ve never come close to equaling since. I was so happy that I asked the club if I could buy the putter that was part of the rental set that I’d used. They were a little surprised since the putter, as in the photo below, was an old, beaten up, 1970’s style club that very few people use nowadays. They offered it to me for $30 and I happily accepted.
There is rarely a round since that someone hasn’t commented on my unusually old putter and indeed, I have never seen another golfer using such a relic! Over the past 20 years I have told the story of my putter many times and most of those times my playing partner just smiles and say’s something like “nice story”, however the last time the response I received was “you could probably got it for less!”
He was right.
When the amount of money is inconsequential, we often forget one of the basic rules of negotiation; never immediately accept the first offer. The key word here is ‘immediately’. I am not suggesting that you always have to negotiate improved terms – you must decide on a case by case basis whether this is appropriate. What I am suggesting, is that no matter how happy you may be with the other sides first offer, you should manage your counterpart’s perception that they have captured most of the value in the deal.
The most successful negotiators are experts in managing perception. Their counterparts leave the negotiation believing that they have secured favourable terms and want to deal with them again. The most successful negotiators claim most of the value in a deal while managing the other sides perspective so that the other side thinks they have claimed most of the value.
If you have ever closed a deal where you feel like you have bent over backwards to accommodate the other side and they were still not happy with the deal, then you have failed on both counts (claiming value and relationship management). This is the worst possible negotiation outcome.
Managing the relationship is one of the key competencies in negotiation, and managing perception is one of the most impactful tools in relationship management. The next time you are given an offer that’s too good to turn down, put the champagne on ice for a few minutes and hesitate. Make the other side believe they have driven a hard bargain, suppress the internal samba that wants to leap for joy, and let your counterpart leave the negotiation table feeling like a winner.
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