Many buy side and sell side professionals lose clarity in pursuit of the deal. When deciding on whether or not to negotiate, plan ahead as to what you walk-way fee or price would be or what package would clinch a deal. Poor negotiators begin a negotiation even if the money discussed falls into the negative fee range. What do we mean by negative fee range.?Assume you charge $10000 for a service or product, and you know you will profit when you sell it at any price over $7000. Your cost price is $6000. And between $6000- and $7000 is your breakeven price after factoring some other costs. When offered $5000, you should not even consider negotiating as the price offered is in the ‘negative’ zone ie you will lose money no matter how you negotiate this amount; unless you can get it to $6000+.
Now at $7500 for example, the price offered is in the ‘positive’ zone. This means even if you accept the first offer as a seller, you will make a profit; and it is likely you might be able to get a higher price.
So, when negotiating, consider if you are in the positive or negative zones even before entering a negotiation
Have a Great February Ahead
Chief Motivation Officer
PS: Interested to read past features on negotiating? Check out these articles from Life Without Limits and “Asian Negotiator” blog here
While we often visit the topic of goal-setting (see the many articles since 2001 from Life Without Limits} in this leadership newsletter. You can also read my thoughts on negotiating skills for leaders at The Asian Negotiator.
Register for the Negotiating to Win™ workshop, Apr4, 2011
Most buy/sell side professionals are failing to get what they deserve simply because of a poor understanding of how to negotiate fees and terms effectively. Applying just ONE of the skills you will learn at our in-house or public seminars can help you succeed in your next negotiation.
Contact us for details and a registration form for our April 4th, 2011 – one-day programme
I want to acknowledge your effort in the last 2 days in delivering a very relevant and useful negotiation workshop. I personally picked quite a few practical tips. Additionally, thanks for your help in preparing me for the negotiation meeting I was going to have.
Lee Hecht Harrison (Singapore)
Our Negotiating to Win™ workshop teaches you how to:
Negotiate more effectively immediately
Improve negotiation skills in probing and listening
Improve your negotiating style through a validated psychometric tool
Avoid common negotiation mistakes
Use up to 30 strategies and tactics
Ask for, and give concessions effectively
Negotiate with real case studies and exercises
New Year, New Website, New Stuff!
Our Shanghai office is in its sixth month now and is delighted to entertain your requests for team development solutions for 2011. Contact our bilingual country head, and chief facilitator for China. Our revamped website now not only has an archive of all the Life Without Limits leadership articles, but also a great shopping page for all those audio-CD,s business simulations and DVDs you have bought either at conferences or throgh pre-event arrangements. We ship worldwide.
What People Are Saying Recently
Shell International Eastern Trading Co
Teambuilding that Works! Get Your Team Performing
Worried about how your fast-expanding team can trust, work and deliver key outcomes as a high performing team? Worried about spending budgets for essentially teambonding events that have little carryover into the workplace afterwards? Speak to us today about teambuilding that is fun, and with options to assess your whole team BEFORE and AFTER a programme using our Team Development Inventories. Nearly a decade of experience building teams, and seamless tools make us unique in Asia-Pacific. We like working with clients who have event and learning outcomes foremost, and not fixated about “activities”, meals and stuff that isn;t pertinent to learning outcomes. See our teambuilding site here.
News and Facebook
The Everest Motivation Team crew and David Lim were busy in Feb 2011 delivering our signature programmes such as Lessons from Everest to clients Such as Shell, MINDEF, and British American Tobacco, as well as serving our licensees of our proprietary leadership development simulation, Everest Challenger™
Our Everest Challenger™ teambuilding simulation (Facebook page) has now been licensed in Australia, in addition to the USA and Taiwan. Call us on 65-97492076 to find out how you too, can acquire a licence to use and deliver your own unique teambuilding programmes