"I can’t stress the importance of obtaining as much information as possible on the item for sale and the atmosphere surrounding the sale."
The word negotiation scares many people for some reason. I believe it is the thought of face-to-face confrontation that frightens many. For others it may be personal insecurity or, possibly, the fear of insulting someone. I know I’ve personally experienced all of these feelings when involved in negotiation, and I don’t think I am unusual. If you are making a conscious effort to avoid situations where you are required to negotiate, or if you simply do not negotiate at all, even if you have the chance, one thing is clear: Failure to negotiate as much as possible is costing you money. Regardless of what you may think, you negotiate every day; you may not realize that you are doing it, but you negotiate all of the time. We tend to think of big-ticket items like cars and houses when we think of negotiation, but anyone who has ever traveled outside the United States knows buying something as simple as a Mexican leather belt, for example, can lead to negotiation that would make some international treaty talks look like child’s play.
In many countries around the world, negotiation between buyers and sellers over every purchase—even for seemingly insignificant things like fruits and vegetables—is part of the culture. Negotiation over price is expected. Recognizing that most interaction between humans includes some form of negotiation will help you become more successful in life.
If you understand that negotiation, just like using coupons, can generate wealth for you and your family, you will find yourself actually looking for chances to negotiate.
With negotiation, in a matter of minutes, you can earn thousands of dollars. Most of us work hours at our jobs in return for dollars. With proper negotiation, you can create dollars in a very short time period. This is called time leverage and it is how people get rich. For example, suppose you are paid $10 an hour at your job. You work one hour and are paid $10 minus taxes. Now, let’s say you have just saved $50 in five minutes using negotiation to get a lower price on something. Your salary for that hour would be technically $600 or, $50 earned in five minutes, times twelve. I think you are worth that kind of money. Don’t you? Benjamin Franklin said, "A penny saved is a penny earned." Actually, a penny saved is better than a penny earned because you do not pay tax on that earned income. I can guarantee you this: As long as you are only paid in direct proportion to your physical time investment, you can never become wealthy. Hourly workers have no way to leverage their time. They work one hour, they get a set wage for that hour. No more, no less. Using all of the principles in this post will allow you to leverage your time as well as generate lots of extra cash flow. This often-used quote in the tax preparation business works just as well in the business of paying less for everything. "In the end, it is not how much you earn, but how much you keep." There are plenty of millionaires who have spent themselves into bankruptcy. Poor spending techniques are what did them in, not lack of income.
Obviously, to become good negotiators, we have to understand what good and bad negotiation is. Negotiation, or compromise, happens between people every day. It occurs whether they know it or not. Negotiation occurs when you get up in the morning, on your way to work, at work, at lunch, at home—everywhere. You probably negotiate with yourself more than anyone. For example, when you tell yourself it is all right to eat the bowl of ice cream for dessert because tomorrow you will jog an extra mile, that is negotiation. A win-win situation if I have ever heard of one, as well. Children are natural negotiators. Have your children ever ignored you when you told them to get ready for bed? That is a form of negotiation. It is a primitive form, but a form nonetheless. They are trying to communicate to you what their position is at the moment, which is, I don’t want to do what you want me to do right now. Perhaps you have a teenager who wants to borrow the car. Have you ever noticed how all the chores get done, and even some extras, on the day your child plans to ask you for something? Again, this behavior is a form of negotiation. The children will do something for you in return for something they would like you to do for them. Most people, whether children or adults, have underdeveloped negotiating instincts. Because of this, emotional cues such as tears, pouts, smiles, hugs, an extra "I love you," are often genuine emotions, but also can be used to negotiate a position. And, these unrefined techniques work fairly well. Ask any parent. Negotiation is communication between two interested parties, which can occur without any verbal communication, as you will soon learn. Some people may think they are good negotiators because they can browbeat anyone into submission.
Yelling louder than the other guy does not make you a good negotiator.
Tricking someone into doing what you want him or her to do does not make you a good negotiator, either. Good negotiation allows both sides to win. Yes, you are adversaries in a sense, but there is no rule that says you have to be enemies out to do each other harm. Unfortunately, many people enter negotiations with this attitude and it can lead to frustration. An, "all-or-nothing" attitude in negotiation rarely will allow you to achieve the results you want. Good negotiators are people who realize that a spirit of "give and take" is necessary to ensure success. Remember, your goal in "purchase negotiation" is to find out exactly how little you can pay for something. You know what the asking price is in most cases; that number simply represents the most you could pay for an item. A good negotiator is like a detective.
The more information you find out in advance (for example, how motivated the seller is), the better your ability to inte
