Thursday, July 31, 2014

Everything in business and life is about Negotiation and Persuasion

If you think that negotiation happens now and then with business you are fooling yourself. Every decision, every action, every thought, every experience is about negotiation. Sometimes we are negotiating with our thoughts - should we do this or should we do that. Sometimes we are negotiating with others on small things - like moving the meeting by five minutes, having someone help you out when they are busy themselves, or persuading someone to see it from your perspective.



This week I have been in search of a housecleaning company. It is not an easy decision as you have to do your due diligence.  I spent time looking at their website, reading their references, determining if the company was licensed and bonded.

Here is how the negotiate went with the cleaning company

Company Negotiation 1: We will come bring two people to clean your house. It makes us more efficient. It will take 2.5 hours and we charge $125.00. We can come weekly.

Me: Negotiation 1: Well while I appreciate that you want to be efficient with your time - it is not efficient with my checkbook. $ 125.00 is not possible for a weekly cleaning. I want something long-term. I prefer only one cleaner come instead of two.

Company: Negotiation 2: We bring two people for safety reasons. One person going into a home is not safe - but two people are so if you'd like we can reduce it to two hours $ 100.00 per week.

Me - Negotiation 2: Safety is important for everyone so I understand your concerns. I think it is fair for you to bring two people the first time to determine if this is a safe home. If you want to consider safety you can due some due diligence/background check on me and after you meet me and my children you can determine if safety is an issue. If it is not an issue we can discuss one person and not too people.

Company: Negotiation 3: Ok but I bring two people so I can help other workers that need the money. Perhaps you can get another bid from another company.

Me- Negotiation 3: It is great you want to help other people out and so getting long-term consistent customers that will use your service every single week is helping them out. If I wanted anther company I would have gone to another company - I want to work with your company.

Company: Comment with no negotiation Ok well we want to work with you as well.

Me - Negotiation 4 and close the first milestone of the deal: Why don't we do this - I would like to pay for you to drive to our home - meet my family and see our home. We can then figure out if 1 or 2 people is best and finalize a price that fits your business needs and my checkbook needs.  By the way here are some photos of my family in case you had some safety concern.

Company: Negotiation 4: Thank you for making this personal. I agree with this option and am looking forward to working with you. I will call you tomorrow to set up a time to visit you at your home and negotiate a price that fits both of us.



So in this situation it was not about closing the 'end deal' it was about closing a milestone so we can get to a position to deal. All I wanted was for the company to agree about coming to the home and figuring out a win/win solution. I knew that trying to negotiate with a stranger on time, consistency, and price would be quite difficult without building a personal frame of reference to the customer, the safety issue, and the concerns both sides were sharing.

So how many of us are actively negotiating and persuading daily? I think most of us negotiate and persuade daily but few of us understand how to do it correctly. It takes consistent experience to build strong negotiation and persuasion skills. In many ways it is no different then building a different muscle in the body.  Working out every day leads to stronger stamina and better health. Negotiating actively daily uses a different muscle that helps you guide through life easier because you are acutely aware of the constant reluctance being thrown at you and you can handle it.

So whether it is your spouse refusing to do the dishes, or a customer saying no to a product, or a bank declining your loan there is always room for negotiation and it doesn't mean you have to negotiate to the end goal -it means you negotiate to the next step that brings you both closer to a win/win.

Whenever I am finding the funds for others or teaching them how to find the funds I am always incorporating negotiation and persuasion in the equation. Well everyone loves a great product or service - part of that greatness comes from you convincing others that it is better then what is out there and they need/wante the product/service.

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