In most well-reputed business schools around the world there is a class on negotiation that allures undergraduates as well as MBA students – because who doesn’t want to be a better negotiator?
Entrepreneurs -- and everyone else in the world -- negotiation is used every single day of your life.
In case you didn’t take such a class, here’s an overly simplified but still useful tip for successful negotiations – a skill everyone, and especially entrepreneurs, can make good use of on a daily basis – illustrated by an anecdote taken from real life:
For a successful negotiation, your best bet is to make it win-win.
Some 20 years ago, my mother Beatriz – a classy lady who had an adventurous spirit and worked as an interpreter for the United Nations and other international organizations – traveled to Istanbul for work. During one of her breaks, she rushed to the bazaar, known for its great deals and rip-offs and therefore a fertile ground for bartering and negotiation.
A few minutes in, she came across a beautiful Backgammon set and asked for the price. It was, of course, too high. She made a counter-offer but the salesman laughed at her. With the clock ticking and Beatriz due back in the interpreter’s booth soon, she did not have time for the usual games of pretending to leave, drinking tea, and slowly reaching a price that suited both parties.
Walking away would have been the choice many people made. Instead, Beatriz suggested to the salesman that they play a game of Backgammon, and the winner could name his or her price for the set.
Unable to resist such an unusual proposition, the salesman agreed and set up the board.
Once the game began, it only took a moment before he realized my mother was either hustling him, or did not remember the rules of the game. If she had ever even known them. Hesitant, he asked if she had ever played before, aware he might offend her but unable to shake the feeling that he was playing someone who may as well have been blind.
My mother shamelessly admitted that she had never played Backgammon before.
Stunned, and greatly amused at this foreigner’s ballsiness – aka self-confidence to do things differently – the salesman laughed and sold the Backgammon set to my mother for her original offer, significantly below asking price.
Will this work every time? Probably not. But the moral of the story is that other than the traditional negotiation route, you can often think creatively to find a solution that is a win-win for all parties involved.
In this case, while the salesman did not win financially, he got an entertaining anecdote to share and a refreshing take on how tourists might try and negotiate with him. It was enough to be worthwhile.
Take a minute to pause and think outside the box.
So next time you’re about to negotiate something, take a minute to pause and think outside the box. If your provider cannot give you those 10% off the price, can they perhaps throw in some extra product? Or if your salary cannot be boosted as you had hoped, could you get a few extra days of vacation?
If you don’t ask, you’ll never know.