Many businesspeople have never been in a position where they had to negotiate. And when they do -- they don't know where to start. Our advice for them is to stand on the foundation that others built for them. Do what their parents encouraged years ago -- just be willing to try.

Fortunately, "just try it" has resonance with employees. Most grew up in families where their elders encouraged them on, saying, "You can do anything you want to do -- all you've got to do is try."

1.) The willingness to try. Obviously the willingness to try is the foundation for success. Who among us didn't try something we thought we'd hate, and discovered something -- or someone -- we loved and pursued?

So it is with negotiation. Before employees can succeed at it, they must be at least willing to try. We suggest they start by negotiating for items in their personal lives. We've found that once they experience wins there, they grow in confidence, and bring a greater willingness to negotiate into the workplace.

2.) Negotiating for personal items first. Believe it or not, by negotiating for the little things you can actually save money equivalent to the cost of a new car! Or -- the day-to-day expenses for fueling, driving and maintaining a car. That's how much you'd actually profit, if every day you went out and negotiated many of the things you now buy at full price.

I encourage my students to look for negotiating moments, suggesting that they ask bankers, clerks, or sales reps, "Is this the best you can do? Isn't there something better you can do for me?"

The answer often surprises them. Yes, there usually is something that can be done -- for those who ask! In fact, over time, those who ask for more can accumulate substantial savings from negotiated purchases.

3.) Retail negotiations. There are any number of ways to start negotiating in your personal life. It may be as simple as walking into a major retailer the day after a sale and saying, "I'd like to purchase this item at yesterday's price. Yesterday it was on sale for $35. Today it's $55. If you give me the sale price, I'll buy it." (We saw this very scenario in action recently at a high-end retailer.)

 

Another negotiation tactic is to ask for the same discount as merchandise hanging nearby -- say a skirt or a shirt that's been marked down 40 percent. The clerk on duty may not be authorized to grant the savings you ask for -- but a department or store manager might.

We give our students these and other real-life examples, describing how they can often lower the price of services, hotel rooms, even credit card interest -- just by trying.

4.) Nothing has a set value. The reason negotiation ultimately works is that despite all of the list prices, stickers and price tags -- nothing truly has a set value. Repeat, nothing -- no piece of merchandise, no service, no "solution" -- truly has a set value. After the basic costs of making or manufacturing something, all value is perceived.

5.) Four factors affecting price. If you understand how commodities are priced, you can use these factors to influence what you pay for them. As a general rule, price is determined by four variables.

Timing: When the seller needs to move the merchandise.

Scarcity: How many items are available?

 
Convenience: Is it easy to find elsewhere?

 
Competition: Is it better or cheaper elsewhere?

 

Timing, scarcity, convenience and competition. Consider these factors when you shop for personal items. Use them to lower price, whenever possible.

When you do, you'll not only save money, you'll gain the confidence you need to negotiate professionally. And that could benefit your company, your career and your life.

 

 

Bill Garcia is the Founder and a Managing Partner of TableForce (formerly Garcia & Associates). He can be reached via email at WilliamFGarcia@aol.com, or at (317) 250-4196.