Tried using the BOGEY Lately?

Today I was working with a marketing consultant on a new project. It came down to negotiating the amount we were going to spend on software, design, fulfillment, etc. In the negotiation I used a 'BOGEY' and it worked wonderfully. More negotiators should try using a Bogey. You'll find it opens up some very productive conversations with your suppliers.

I think the term 'BOGEY' was originated by Dr. Chester Karrass, the guy you see in all the airline magazines advertising his effective negotiating seminar.

The Bogey is an effective, ethical, and simple negotiating tool. I don't understand why more negotiators don't use it. It can benefit both parties in a negotiation and open the path to some really creative outcomes. A Bogey should always be considered when you are purchasing a relative complex product or service.

Here's how it works.

Let's say you want to expand your corporate web site to include several industry specific Blogs, direct downloading of product brochures and specifications, and the collection of demographic information so you can 'customize' marketing communication with existing and potential clients. All of this needs to interface into the company's CRM system and create a customer specific history.

You go out and get a few bids from companies who are qualified to handle the project. And after review of the responses, you select the contractor you'd think you'd like to work with and have them in for further discussions.

Let's say their bid was $88,000 to do the work. It's one of the higher bids you received, but you like the work they do and have confidence in their ability to complete the project on time.

So you throw out a Bogey.

You say, "I love your proposal, but all corporate budgeted for this project is $60,000."

A salesperson will generally respond to a Bogey by either changing their proposal, reducing the price, or showing you what alternatives are available. Whatever their response, you will learn things you never knew before you used the Bogey.

In almost all cases you learn more about the product and services being proposed and alternatives that impact the price. This new information puts you in a better position to make a more informed decision.

Why does this work so well? When I tell a salesperson I love your product but only have so much to spend, most salespeople tend to respond in a positive, friendly fashion. How can they be hostile toward someone who likes them and their proposal? The salesperson gets involved with me and my budget problem. All that remains between them and a closed sale is a little problem solving.

The negotiation moves away from a competitive affair to one of cooperation. The salesperson, knowing that budgets do exist, tends to feel sorry for me. The salesperson's frustration is directed against the 'system' that senselessly and arbitrarily created this roadblock. Usually the salesperson starts taking a new look at my real needs, and before long it is discovered that some items in the original price can be trimmed away, others can be changed, and still others can be adjusted to help me meet my budget. Each party helps the other reach its overall goals.

What often results from this buyer-seller interchange is a functionally usable product at a lower price. Or, maybe a much superior product at a somewhat higher price.

Part of the reason the Bogey is so effective is that it involves the salesperson's ego. People like to help others in need. The Bogey gives the salesperson a chance to show their knowledge of their product, the buyer's business and dedication to the buyer's well-being.

The Bogey may not necessarily lead to a lower price for the buyer, but the buyer will be better off having learned a lot more about the product than was known before the Bogey was put into play.

Try a Bogey the next time you're in a negotiation. I think you will find it to be very useful. I did!

kmoney