Negotiating in Life, Negotiating Tips, Business Negotiation October 1, 2010

How to zero in on the bottom line

A hawk chooses its prey from a distance, focuses on it and then zeroes-in for the kill. In a business negotiation, you want to zero in on what the other party wants or is willing to give (the bottom line). A razor-sharp focus on the bottom line can help lead to success.

How do you zero in effectively on the bottom line? In many cases, to zero in effectively on this information, you will have to test the other party to see how she/he reacts to your offer. Dr. Chester L. Karrass provides a several useful scenarios or approaches you to try out:

Would you consider approach: Ask the seller if he/she would consider a certain price if a condition were met (for instance, including the furniture with the house).

Big order approach: Give a price for a large-scale sale to the seller that reduces the price dramatically. For instance, the seller wanted $15 for a dozen items, and you offer $25 for 6 dozen.

Make an offer that must be refused approach: The buyer offers a too low price to the seller, which he refuses. The seller thinks the buyer can’t afford the item and now feels free to talk about the price. The buyer can come back with the new information.

Better product approach: The seller tests the buyer by showing a better product that is more expensive. If the buyer shows interest, the seller may conclude the buyer has a larger budget that he/she indicated.

Take it or leave it approach: The buyer gives a “final offer” to test the seller.

Some of these approaches may seem a bit underhanded to you. Another very straightforward approach that could work depending on the parties involved is to ask a direct question. Many people will get to the bottom line right away because they would like to get the negotiation over as quickly as possible.

How do you zero in on the bottom line? Please provide a scenario that has worked for you in the comments.