"How-To" leaflet

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Quick's Guides, No. 102 - HOW TO BARGAIN SUCCESSFULLY

Making sure you get the best deal, whether you're buying or selling.

Bargaining Techniques

Buying Tactics - and what to expect in response to them

Selling Tactics

Body Language

Verbal Clues

Personality Types - and how to deal with them

 

Bargaining Techniques

Whatever you're buying or selling, good bargaining techniques will help you make the best deal for yourself.

Bargaining is easier than you think - ever since you were born, you've been bargaining in one way or another. What does a baby do when it cries? It's making a bargain of its own: "Pay attention to me or I'll carry on screaming!" And who could argue with that?

Your aim should be to get what you want at the minimum cost to yourself, without depriving the showroom salesman or the market vendor of the profit to which they're entitled. Or at least, the portion of that profit to keep themselves and their businesses going. After all, if it wasn't for that part of their profit, they wouldn't be there.

Bargaining is nothing but a set of manoeuvres between buyer and seller, until an acceptable compromise is reached. The trick to successful bargaining is to recognize those manoeuvres while pretending you don't, and to respond to them in a way that turns the advantage back to you.

The Bargaining Process

There are three stages to the bargaining process:

1 - Establishing criteria: each party states what they want, and finds out exactly what they expect in return.

2 - Gathering and exchanging information: the more each party knows about the other party's needs, the more easily those needs can be fulfilled.

3 - Moving towards the compromise that completes the transaction.

There are also some essentials that you must understand:

1 - Bargaining is a two-way affair.

2 - The other party may not want the same outcome as you.

3 - The bargaining process is not solely about money.

4 - The other party will be watching you for your reaction. It's up to you to watch them, too.

5 - The best bargains are those where both parties walk away satisfied.

Bargaining Tactics

Here are the best tactics for buying, and how the other party may try and counter them:

Never look too eager to buy: if the other party knows or even thinks you desperately need what they're selling, they'll use it as an opportunity to raise their asking price. How the other party may counter: They may well give the appearance of not being in a hurry themselves, hoping that this will force you to make a higher offer.

Never be the first to name the price: this gives the other party the cue to try to bargain to their advantage. But once they've named their price, react (visibly - don't forget they're watching you for your reaction) and then name a price below one you'd consider appropriate. How the other party may counter: They cold draw attention to your acting ability, and by doing so, try and embarrass you into raising your bid.

When the other party names an outrageous price, squeeze them firmly but gently with these words: "You'll have to do better than that." How the other party may counter: They can now name a new price, but still above one that seems reasonable to them. Al least now you've established a narrower margin within which to bargain.

If you're by yourself and you've bargained most of the way to a price you're prepared to pay, use an unseen 'partner' you have to refer to for a final 'yes' or 'no' before getting back to the other party. You can walk away for a while, and then come back later saying that your 'partner' likes the sound of the offer but thinks that the price could be more reasonable, while making sure that price is below the one you're prepared to pay. How the other party may counter: They may try to remove your 'partner's' authority by trying to confirm that your 'partner' always follows your recommendations, and that you'll suggest the price they've named as a reasonable one.

Never look as though you have more money on you than you're prepared to pay: it can be effective to empty your wallet and say "It's all I have - take it or leave it." How the other party may counter: They could ask you for a cheque or the rest of the payment in the near future.

Even if you know everything there is to know about whatever you're trying to buy, on no account let the other party know that. If you ask for help and information, they may well drop their guard and become supportive to the point of helping you get the best deal you can. How the other party may counter: They could refuse to deal with you on the grounds that they think you don't know what you're talking about.

Tactics For Selling

If you're selling, be sure to emphasize what the goods cost to you, how good a condition they're in and the value of those goods to the buyer.

People are more inclined to believe what they see in writing than what they hear, so if you have printed facts to back up your bargaining position, use them: show the other party that magazine report saying the car you're selling is worth what you're asking.

Always have the facts about what you're selling to hand - answer every question with authority, not with pat or glib responses.

If what you're selling isn't quite what the other party is looking for, and they make a lower bid than you're prepared to accept, use the "feel, felt, found" tactic: "I know how you feel about this particular model. I felt that way too. But when I bought it, I found it was an improvement over the other model I was planning on buying because …" and then follow that up with credible reasons.

Emphasize the features of the goods you're selling, and the benefits of those features to the buyer.

If you're selling a service, always negotiate your fee beforehand - unless you've signed a contract in advance, once that service has been performed the other party may find it hard to believe that they agreed to pay the amount you asked. Remember, the value of services diminishes once they've been performed.

General Tactics

A lot of bargaining isn't just about the price - for some people it can be a battle of wills, or even an ego trip. If you come up against someone like this, ask for more than you really want, so when it comes to the closing stages of the bargaining process, you've got something to give away (at no cost to yourself) to make the other party feel better about giving in to you.

If you have to make concessions, make large ones at the beginning of the bargaining process, and then make progressively smaller ones afterwards. Otherwise you'll find yourself making too big a concession at the end, when you don't want (or even have) to.

Use silence. If you have nothing to say, keep quiet. The other party will soon feel uncomfortable enough to start the bargaining process rolling once more.

Write down questions and demands you would make if the positions were reversed and you were buying, instead of selling, and vice-versa. This will give you some idea of what to expect when you start bargaining for real.

Know exactly the cost of any concession you're willing to make. You might find you won't make that concession so easily once you realize the exact worth of what you're prepared to give away.

Never offer to split the difference. Leave that to the other party, and when they do, treat that price as a new bargaining point until they offer to split the difference again. And so on.

If you make a mistake, don't correct yourself immediately. Let the other party point it out to you. It will make them feel important and reduce any hostility they may have developed towards you.

Finally, if you can't come to a satisfactory conclusion, just walk away. They other party may call you back with an improved offer, but if not, never forger that there are plenty of other people out there who want what you have to offer, or who are offering what you want. All you have to do is go out and find them.

Body Language

During any bargaining session, the other party will be watching you carefully for your reaction to what they're saying. You should be watching them equally carefully, but without giving the appearance of doing so.

Remember that the mannerisms listed below can be natural to some people, but if a person's body language changes suddenly, chances are it's an involuntary reaction to something you've just said. Watch, and act accordingly.

Hands

Handshake: If it's overly friendly (with both hands, clasping your elbow with the other hand, or even with their other hand on your shoulder) the other party wants something from you.

Palms: Damp palms indicate nervousness. Keep an eye out for the other party wiping their hand before reaching out to shake yours. If they do that, all may not be what they say it is.

Stroking the chin: The other party is interested in what you are saying.

Drumming fingers: The other party is impatient.

Wringing the hands together: The other party is undergoing mental strain. And why should that be?

Steepling (pressing the fingertips together): The other party has great confidence in what they are saying, or in themselves.

Knuckles under the chin: The other party is interested in what you are saying.

Head

Blinking: Regular blinking, (every five to six seconds or so) indicated calmness on the part of the other party, but should that rate suddenly change, it indicates that they have become tense, are very alert, perhaps exaggerating or even lying. At the very least, they're uncomfortable with what they're saying.

Chin resting in the palm of the hand: The other party is bored.

Head tilted towards you: The other party is paying close attention to what you're saying.

Stroking the nose: The other party is either lying or exaggerating.

Touching the bridge of the nose: The other party is concentrating.

A tug on the ear: The other party wants to hear more.

Scratching the back of the head: The other party feels uneasy.

One hand placed on the back of the head: The other party is annoyed.

Glasses

Looking over the top of the glasses: The other party is expressing disbelief or disapproval.

Repeated cleaning of glasses: The other party is buying time to think.

Taking glasses off and laying them on the table: The other party is no longer listening.

Verbal Clues

"I wish I could" - "I can, but I need convincing".

"Incidentally / Before I forget / By the way …" - At face value, these precede a casual statement, but be prepared for something less casual.

"Frankly / Honestly / To tell the truth …" - Can legitimise a statement that may not exactly be the whole truth.

"I'll try my best / I'll see what I can do …" - Be prepared for whatever the other party is promising not to happen.

"But / However …" Negates everything that precedes these words.

"I don't mean to be personal, but …" - Whatever follows is going to be very personal.

Time

The time element is one of the most important factors in any bargaining process - just ask any market trader late on a Saturday afternoon, when he's got perishable stock that would only get thrown away if it's not sold. What's he going to do? He's going to try and get rid of it - at any price - just to cover his losses … and also not to waste time putting unsold vegetables into the rubbish bin. (Remember? Bargaining isn't always about money.)

When time is short, bigger concessions will be made as the deadline presses. On no account let the other party know you have a time limit when you're buying or selling - it's the same as looking too willing to take the first available offer.

If you can introduce things as late as possible into the bargaining session if you're sure time is on your side, because if the other party's pressed for time, you'll get a much better deal.

Personality Types

Professional negotiators recognize that there are four types of personality they're likely to encounter during their career. Each has their own way of negotiating, and if you can identify what type of personality you're bargaining with, you'll find it much easier to deal with them.

The Analytical: Not very assertive. Not very emotional. Concerned with details and wants all the facts before making a decision. Long attention span. Wants to know exactly how things work. Give them all the facts and details.

The Amiable: Not very assertive. Emotional. Concerned with feelings. Doesn't want the hard sell. Wants both parties to walk away from the bargaining session happy. Don't pressure them, but let them know you have their best interests at heart.

The Pragmatic: Very assertive. Not very emotional. Very active. Short attention span. Organized, and good at getting things done. Doesn't make concessions easily. Don't be too enthusiastic - give them the practical issues, and use logic to help them make up their mind.

The Extrovert. Assertive. Emotional. Excitable, willing to take risks. Has a tendency to ignore the feelings of others. Take the time to make small talk before getting down to the real bargaining issues.

END