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batna or best alternative to a
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negotiated agreement imagine this you're
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buying a used car the dealer quotes
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$10,000 and you're tempted but before
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you even walked into the dealership you
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already found a similar car online for
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$99,000 that $9,000 car that's your
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batna your backup plan if this deal
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falls
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through this concept comes from getting
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to yes by the Harvard negotiation
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project batna gives you power by letting
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you walk away the stronger your
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Alternatives the more power you have at
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the negotiation table research even
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shows that simply knowing you have a
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batna makes you negotiate more
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confidently the key is to always know
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your options if you're interviewing have
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another offer lined up selling something
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have other buyers in mind even on a date
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it doesn't hurt to know there are other
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fish in the
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sea anchoring let's say you're selling a
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couch on Craigslist you list it for $500
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even though you're secretly okay with
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$300 the first number you throw out $500
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is your anchor and here's the trick that
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number sets the tone for the entire
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negotiation anchoring works because
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people naturally fixate on the first
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number they hear even if it's arbitrary
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studies show that even experienced
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negotiators aren't immune to the effect
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of an
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anchor this tactic is highlighted in
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negotiation genius by Harvard professors
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deepack Malhotra and Max
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baserman they explain that making the
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first offer lets you control the range
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of the discussion nudging it closer to
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your ideal
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outcome the key start high if you're
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selling and start low if you're buying
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just make sure your anchor is realistic
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to extreme and you'll scare the other
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party
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away win-win versus Zero Sum imagine
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this a small business owner is
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negotiating with a supplier the owner
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wants lower prices to stay competitive
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while the supplier wants bigger orders
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to increase profits it seems like one
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has to lose for the other to win but
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instead of fighting they find a creative
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solution the owner agrees to a long-term
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bulk purchase and in exchange the
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supplier lowers their prices so both
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sides win this is a win-win negotiation
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a Cornerstone of getting to yes by Roger
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fiser and William Yuri it's not about
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compromising or splitting things down
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the middle it's about creating more
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value for both sides in a win-win
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mindset negotiation becomes a
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collaborative effort to expand the P not
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just to divide an existing Pi the key is
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to shift from competing to cooperating
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think of the negotiation as solving a
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shared problem together not as a battle
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over limited
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resources focus on interests not
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positions now imagine you're arguing
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with a friend about where to go for
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dinner they want sushi but you're
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craving pizza instead of pushing back
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you ask why turns out they want
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something light and healthy so you
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suggest a solid bar something that works
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for both of you problem solved this is
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another core principle from getting to
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yes which says that the more you clarify
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your position and defend it against
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attack the more committed to it you
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become our positions are the surface
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level demands what people say they want
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while interests are the underlying
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reasons behind those demands what they
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truly care
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about the key is to ask why and what's
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important about that these kinds of
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questions move the conversation Beyond
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those fixed positions to the real
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motivations people have behind them by
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understanding each other's interests
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well you can create new solutions that
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will satisfy both sides
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better Fair standards you're haggling
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over rent with a potential landlord they
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want $2,000 a month you want
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,500 instead of arguing endlessly you
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suggest looking at local rental listings
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to see what similar apartments are
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charging the landlord agrees and you
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both settle on 1750 a price backed by
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fair market
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data this tactic outlined in getting to
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yes is about using objective criteria to
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guide your negotiations
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when emotions or biases threaten to
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derail the discussion Fair standards
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like Market data industry benchmarks
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established precedents or expert opinion
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can ground the conversation in Logic the
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key is to bring in an external standard
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that both sides can agree is reasonable
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it's not just about fairness it's about
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making the deal feel legitimate and
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harder to
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dispute separate people from the
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problem imagine this you're managing a
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team and two co-workers are clashing
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over project deadlines one says the
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other is lazy while the other fires back
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that their expectations are unrealistic
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tempers are high and nothing's getting
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solved so instead of taking sides you
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suggest focusing on the real issue which
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is how to balance the workload to meet
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the
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deadline this tactic is about separating
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personal emotions from the problem at
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hand the key is to treat the other
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person as a partner not an opponent
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acknowledge their perspective but keep
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the conversation focused on solving the
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shared problem not attacking each
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other bundling issues you're negotiating
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a raise with your manager you want a
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higher salary but they push back saying
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the budget is too tight instead of just
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sticking to discussing salary you widen
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the scope of the negotiation you ask
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about potential bonuses flexible hours
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or more vacation days by boundling these
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issues together within the negotiation
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you create more room for tradeoffs
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making it easier to reach an agreement
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that works for both
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sides this concept is emphasized by
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Professor Deepak Malhotra of Harvard
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Business School co-author of negotiation
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genius he highlights the importance of
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being flexible in the current
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in which we get paid the key is to not
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focus solely on one demand we have think
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about what else might be valuable to you
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or the other party because when you
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bundle issues together you're more
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likely to find a solution that will
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satisfy both
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sides the power of Silence picture this
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you're buying a car and the salesperson
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says
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$25,000 take it or leave it instead of
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reacting immediately you pause you sit
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back fold your arms and let the silence
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hang in the air the salesperson
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uncomfortable with the Quiet quickly
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adds well we might be able to go a
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little
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lower this tactic is a powerful tool
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that shifts pressure to the other side
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the book negotiation genius says
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effective
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negotiators understand not only the
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power of Silence but also the need to be
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comfortable with it people F silences
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and awkward pauses with concessions or
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extra information the key is to stay
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calm resist the urge to speak and let
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the silence do the work and the next
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tactic is similar the Flinch you're
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negotiating the price of a used car and
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the seller says
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$115,000 instead of calmly nodding you
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Flinch literally you raise your eyebrows
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and surprise you lean back and say
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$115,000 the seller hesitates unsure if
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their price was too high they quickly
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follow up with well we might be able to
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work something
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out this is the Flinch a non-verbal
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reaction that signals surprise or
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discomfort with an offer simple but
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incredibly
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powerful this tactic is discussed in
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classic negotiation texts like secrets
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of power negotiating by Roger Dawson it
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works because humans are wired to
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respond to social cues especially
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discomfort a Flinch can make the other
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side second guest their offer and
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reconsider their position without you
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saying much at all but make sure to keep
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your reaction authentic not exaggerated
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or it can
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backfire reciprocal concessions you're
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negotiating a contract with a client you
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want a higher rate but they're hesitant
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so you offer something first a faster
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turnaround time or a free additional
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service suddenly the client feels
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compelled to give something in return
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also like agreeing to your higher rate
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this is reciprocity one of the six
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principles of influence outlined by
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Professor Robert Shalini in his book
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influence when you give something of
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value it creates a sense of obligation
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for them to return the favor ch's
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research found that even small guestures
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like offering someone a free drink can
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dramatically increase their willingness
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to say yes to a larger request mirroring
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you're in a negotiation and the other
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side says we need this project finished
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in 30 days instead of immediately
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agreeing or pushing back you respond 30
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days it's a simple reflection of what
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they said but in negotiations it can
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work its magic they will start
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explaining why the timeline matters
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revealing more valuable detail details
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you can use to craft a better deal this
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is mirroring a tactic highlighted by
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Chris Voss and never split the
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difference subtly repeating someone's
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words or tone shows you're listening and
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builds trust inviting them to reveal
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more a deadline pressure imagine you're
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buying a house and the seller says we
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have another buyer lined up so we'll
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need your final offer by tomorrow
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suddenly you feel the pressure you don't
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want to lose the deal so you make your
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move faster than you planned That's The
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Power of deadline pressure most of us
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remember waiting until the last day to
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finish an important School assignment
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while this tactic Works using the same
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psychology setting a time limit creates
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a sense of urgency pushing people into
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action the key is to use deadlines
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sparingly and strategically a believable
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time constraint can make the other side
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priority ize your deal but if it feels
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arbitrary or man manipulative it can
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backfire and damage
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trust building Rapport you're
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negotiating with a new client and notice
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a picture of their dog on their desk is
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that your dog I have one just like it
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the client smiles and talks about their
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pet for a few minutes suddenly the
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conversation feels more relaxed and when
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you finally get to the deal they're much
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more
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Cooperative this is building Rapport a
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strategy emphasized at Harvard and MIT
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finding common ground like shared
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interests or experiences builds trust
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and makes negotiations
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smoother the nibble you're negotiating a
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new deal on a car and after you agree on
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the price the dealer says to you great
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just to finalize there's a $200
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documentation fee you weren't expecting
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it but you reluctantly agree not wanting
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to derail the whole deal well that's the
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dealer nibbling sneaking in a small ask
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after the big agreement has been made
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but here's how you can turn it around
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after agreeing to the car price maybe
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you will say by the way can you throw in
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free floor mats and a full tank of gas
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now the dealer not wanting to risk their
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big sale quickly agrees so now the
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nibble is working in your
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favor this tactic discussed in
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negotiation books like secrets of power
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negotiating works because minor requests
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seem insignificant when compared to the
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larger deal already on the table making
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them less likely to be
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resisted communal problem solving you're
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at a shoe store eyeing a pair that's
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just out of your price range instead of
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arguing with a salesperson about the
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price you say I really love these shoes
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but they're slightly over my budget is
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there any way you can help me out the
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salesperson talks to their manager gets
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you a discount and you walk away
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happy this approach taught by Professor
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Margaret Neil at Stanford works by
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Framing your request as a shared problem
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you can both solve by saying I have a
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problem can you help me you shift the
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negotiation from a tug of war to a team
00:13:50
effort fostering cooperation instead of
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conflict the contrast principle you're
00:13:58
shopping for a suit suit the salesperson
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First shows you a high-end $2,000 suit
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after you express hesitation they
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present another highquality suit that
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costs only
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$1,000 in comparison it seems like a
00:14:15
bargain now imagine looking at two
00:14:17
identical circles one is surrounded by
00:14:20
smaller circles and the other by larger
00:14:22
ones to most people the first Circle
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looks bigger even though they're the
00:14:27
same size
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well that's the contrast principle at
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work our brains perceive things relative
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to what's around them not in
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isolation in negotiations we can use
00:14:40
this principle
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strategically for example if you present
00:14:44
a larger less favorable option first
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your real offer will seem much more
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appealing by
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contrast it's a simple trick that can
00:14:54
shift how people see your offer without
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changing a single detail
00:15:00
now if you want to dive deeper into the
00:15:03
subject of negotiation then take a look
00:15:06
at growth summary that's my interactive
00:15:09
book summary service over there I have
00:15:12
in-depth guides to many of the books
00:15:14
mentioned in this video so you can learn
00:15:16
how to negotiate like a pro in less time
00:15:20
learning the exact lines and techniques
00:15:23
used by experts at Harvard the FBI and
00:15:25
more we even have a free trial available
00:15:28
at grow summary
