Retirement Entrepreneurs Blog

Comments, rants and tips on baby boomer small business ideas
and working after retirement.


Author: Ingvar - Retiree In Training  


Working after retirement

Tag Archives: small business negotiations



We all negotiate every day. It could be with customers, spouses, suppliers, investors and so on. In business - even a part-time retirement business we negotiate. At out age (!) we have some experience, and a few favorite "tricks". Like my emotional influence tactics I am writing about. However, let's just go back to a few basic missteps you can avoid:

Saying "Between".
It sound good. It's comfortable. It's nice to say "We can develop this project for between $3,000 and $4,000." Thing is - any negotiator worth his or her salt will immediately focus on the lower number. So why bother? You have now set the lowest bar and that's where the deal will happen. You have conceded to $3,000 - that's what you will accept. And you will.

Saying: "We're getting close".
Now you are saying you'll do anything to close the deal. You are tired and just want to get it over with. A good negotiator will now stall - drawing further concessions from you. It's like the Japanese. They have a totally different time schedule than us north Americans. They will ask you when you go to Japan - "when are you leaving"? (In a nice way of course). So now no serious negotiations will happen until the very last minute before you have to leave. You lose.

Who throws out the first number?
I learned a long time ago that the person who gives the first number (unless it's already known in the form of an asking price) loses. Now there has been a study from the NW's Kellog School of Management that shows that when a seller makes the first offer the final price tends to be higher than when the buyer makes the first offer. So in the case of the price is not published, it's ok to start. Setting the stage. As long as the price is not ridiculous.

In any negotiations - it's about the need of your opponents. If you can satisfy that - AND your needs as well - you win. We all win.



comments (0)






__________________________________________________________







Retirement Entrepreneurs | Retirement Business | Retirement Jobs

Retirement Income