Understand All of the Issues at Hand Many of the issues that need to be resolved are usually obvious, but in every negotiation there are hidden or unstated issues that also need to be addressed. Find out what those are early on. If you can’t do so prior to getting to the negotiating table, then make some assumptions and test them at the onset of your negotiation. The sooner you discover all of the issues that need to be addressed, the sooner you can get to anchoring. Do Your Homework Know the market before you sit down at the negotiating table. Do your due diligence. If this is an existing partner, review all previous contracts “Deal rapport will help push the deal forward.” and agreements, and make sure that you understand what the pricing or terms have been. If it’s a new client or vendor, review what you’ve done with other clients or vendors, so that you better understand the market. In addition, do some research to understand more about their actual business: Are they market leaders or just trying to establish themselves? The point being, to be market-relevant you must understand the market. So . . . back to my neighbor’s question: “Is anchoring the most important thing to do in a negotiation?” In the fog of that early morning, I told him, “If you’re credible, then anchoring is effective.” He quipped, “Just as in life, credibility matters.” So true.
the proposal is so unrealistic, it will never catch so as to anchor the negotiation. In fact, it may send the negotiation adrift, wasting time and eroding trust. The same holds true for a proposal that doesn’t address the critical points of conflict. Assume that there’s a conflict surrounding a point you’re concerned about (point A), a point the other side is concerned about (point B), and a point that you both care about (point C). Now, assume the other party provides a proposal that addresses only point B and point C. How would that make you feel? It would probably leave you wondering, Hey! What about point A? At which point, you’re unlikely to view it as credible, because it doesn’t address your concern (point A). When either party’s concerns are left out, the proposal is not viewed as credible by the other party and the anchor cannot take hold. Here are some tips to be more credible: Establish Rapport Early If you’ve ever been in sales, you know that establishing rapport is one of the first things we do. There are many ways to do this, but I find that it starts with making a great first impression with the right tone, a friendly demeanor, and the appropriate appearance. Then it’s about getting into a meaningful conversation by being interested in what’s happening in the other party’s world and asking questions about them while actively listening. Finally, project confidence that you’re the person with the authority to negotiate (no one wants to waste their time with someone who can’t get a deal done). “Anchoring is the act of making a first proposal.”
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