Negotiation Techniques

One of the most useful skills you can learn is how to negotiate effectively. Here are a couple of quick tips (since it's late) on how to negotiate.

1) Do what my 5 year old daughter does. Never give up! "I want a Wii." Sorry, Melissa--it's too much. "I really want a Wii." Maybe for your birthday. "Daddy--if you love me, you'll get me a Wii." Guess what? I just played a game of "Super Mario Galaxy" on my daughter's new Wii. (Great game, by the way.) In the car sales world--"Your payment is $400." I want to be at $300. "I'm sorry, but your payment is $400." How about $350? "I wish but it's $400." Ok.

2) Change the offer (very powerful.)

You: "Mr Customer, your payment is going to be $400."

Customer: "I want to be at $350."

You: "I'll check with my manager. (leave and come back) You know what? They made a mistake--they used the wrong rebate and your payment is really going to be $427"

Customer: "But you told me $400! If it's not $400, I'm walking." You get the picture--very powerful stuff.

3) Use the "up-to" hand motion.

Customer: "I'll pay $350 per month."

You (motioning your hand in an raising manner): "Up to...?"

Customer: "Up to $375"

You (raising hand higher): "No more than...?"

Customer: "No more than $390"

You (final raise): "But if you found the perfect car and it was $400, you wouldn't let $0.30 per day keep you from your perfect car, would you?"

4) Be prepared to walk away--and mean it!

You: "Mr. Customer, this car is gonna run you $23,900"

Customer: "I'll only pay $20,000"

You: "Unfortunately, this is the hottest car out there and that's what they are selling for. But I would understand if you don't want to pay that so have a nice day."

Customer: "Uh--what about $22,000?"

5) "Here's what I can do for you..." I work with some people who want us to get an offer out of the customer before we work figures. You know what? I disagree... Lets say you walked into Lowe's and wanted to buy a dishwasher and you asked the sales dude how much it is and he said, "Make me an offer what you would pay today and I'll take it to my manager." You would...

a) Either make a low ball offer
b) Be afraid to make an offer at the chance of offering too much
c) Get pissed at the high pressure tactic and buy somewhere else
d) Say, "I'm just looking."

So--here's what I would do.

Customer: "How much is this car?"

You: "It's $23,900 but here's what I can do for you today. I have a contest I'm trying to win so I'll sell it to you right now for $23,250 and if anyone asks, you're my cousin and using my discount, OK?"

Last but not least (at least in this article...)

6) Hit them high and negotiate from there. It's a negotiation game so hit them at full sticker (at least) and get them to make an offer after you "peal them from the ceiling" unless of course the stars align and they hook up! (it happens about 10% of the time by the way...)

7) Indifference: If you act like it is no big deal to sell the customer a car, they will want it more. I remember a billion times where it was time for me to go home and a customer walks in. "Are you still open?" I try everything in my power to get them not to buy so I can go home broke and they buy. Hmmm...

8) "I'm not sure if this car is available. I think someone already bought it...let me check." Remember the Wii I talked about? I already have a powerhouse computer and an XBox 360 so I really had no intention of ever buying a Wii but when they told me I couldn't have one--I wanted it! I did the same thing when I bought my house. The real estate lady told me they had 2 other people about to make offers so I paid almost full sticker and bought my $130,000 house (that is probably only worth $20,000 right now--freaking Michigan economy!)

Hey--"Family Guy" is on so goon night and good luck selling!

Marv