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Tactic #7 - I'll Meet You in the Middle
Summary: Selecting the midpoint between two
counterparts' offers.
When two parties are apart on an issue and the
negotiation seems to be at a stalemate, one counterpart can offer to
split the difference with the other.
Example
You are buying a car and do not want to pay any
more than $1,800. The seller does not want to come down any further than
$2,000. Since you are $200 apart, either of you could offer to split the
difference and do the deal for $1,900.
Counter
The rule of thumb in this situation is to let your
counterpart offer to split the difference. If you make the offer, your
counterpart knows you are willing to pay the higher price. A good
solution is to state, “We are only two hundred dollars apart. What
should we do?” If the seller offers to split the difference, you know
she is willing to accept $1,900. With this new information, you, as the
buyer, could counter, “You have just stated that you are willing to take
$1,900 for your car. I am willing to give you $1,800. That makes us only
$100 apart. Why don’t we split the difference and do the deal for
$1,850?”
This tactic is one of 101 strategies and tactics
featured in The Only Negotiating Guide You'll Ever Need, by Peter
Stark and Jane Flaherty.
Ask the
Negotiator
Dear
Peter,
I am strictly a buyer's agent. I currently have a client
talking to two different builders to build their custom home.
My clients own the lot and both builders are satisfied to build a
home on it. The only leverage I have is that both builders are
aware of their competition. I'd like to know how to determine
what the builder's costs really are to determine where I should
begin my negotiations. Any tips for me?
Joy
Dear Joy,
You’ve got an interesting and challenging job ahead of you. Here are
some tips we think may help you best represent your client and
select a great builder:
1. Get another bid so you have a total of three bids to review. If
you only have two proposals, and one is high and one low, your
buyers may think that the high bid is a “rip off” and go with the
low. Having an additional proposal to compare will help your buyer
make an informed decision.
2. Do your homework – get client referrals from each builder that
submits a proposal. Check with their customers – are they happy with
the quality; was the work completed on time; did the builder keep
the site clean; would they pick the same builder again? The more you
know about each builder, the better able you will be to negotiate on
your client’s behalf.
3. Don’t narrow your focus down to strictly cost per square foot.
Keep a lot of variables available to play into the final
negotiation. For example, start and end dates for the construction;
upgrade options; appliances; landscaping; security systems, etc.
Finally, don’t forget the power and leverage you have in this
situation. Your buyers want to build a luxury home and you’ve got
three builders vying for the option to complete the project.
Best regards,
Peter
Ask the
Negotiator - Are you involved in a
negotiation and not sure what strategies or tactics to use?
Send in your toughest negotiation
challenge and our team of expert negotiators will outline a specific
plan to ensure your success. Please send your negotiation
challenge to
info@everyonenegotiates.com. If your challenge gets
published, we'll send you our special edition Negotiation Mug,
filled with sweet treats.
To view this month's issue of The Master
Negotiator, the premiere on-line newsletter for negotiators,
follow this link:
The Master Negotiator, Volume 2, Number
6 Listening Skills Part II
To view previous Negotiating Tactics of the Week,
follow this link:
Negotiating Tactics of the Week
To forward this tactic to a friend or colleague
please click on the forward link below
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