Negotiating in Life , Business Negotiation June 08, 2009

Recession Is Boon to Negotiating Skills

There has never been a better time to sharpen your negotiating skills. Many companies are feeling the recessionary economy’s pinch and are now more open to negotiating rates, fees and added value...

There has never been a better time to sharpen your negotiating skills. Many companies are feeling the recessionary economy’s pinch and are now more open to negotiating rates, fees and added value. Because of the recession, the power scales are being tipped in favor of the buyer.

Consumers who negotiate are getting better deals and saving money. Savvy shoppers are bargaining for deals on furniture and for other goods and services that were traditionally sold at face value. In fact, many shoppers are using the recession as leverage, knowing that stores are anxious for sales.

“Most everything, it seems, is open to negotiation these days as supply outstrips demand, emboldening price-conscious consumers to push for discounts and deals,” writes Susan Todd in the New Jersey Star-Ledger.

http://www.nj.com/news/index.ssf/2009/06/in_recession_more_consumers_pu.html


Price negotiations are also going on in the business-to-business sector. For instance, according to Crain’s Detroit Business, hotels are now more flexible on rates for meetings and conventions (read article here:

http://www.crainsdetroit.com/article/20090607/FREE/306079992/1068#

The Los Angeles Times is reporting that a growing vacancy rate in even upscale retail locations is “giving a bargaining edge to those tenants who've been able to hang on, and many have been negotiating cheaper leases. In some cases, landlords in the Los Angeles area have dropped rents between 20% and 40%, brokers said.” Read the full article here:

http://www.latimes.com/business/la-fi-retail-space6-2009jun06,0,826746.story

As with any negotiation, be prepared. Do your research, and know what price you are willing to pay before you start negotiating. Also, be sure to understand the willingness of the seller to negotiate.

For a more in-depth look at how to negotiate during a recession, refer to our earlier post: Strategies for Recession Negotiations.

Have you found that you are negotiating price more during the recession? Please share your experiences in the comments.
Upcoming seminars
Effective Negotiating
Effective Negotiating
Effective Negotiating
Effective Consensus: Negotiating with Co-Workers and Teams
Search for seminars near you
June 04, 2020

Success in negotiation starts with understanding what kind of negotiation you are dealing with. Fundamentally, every negotiation is fundamentally about finding and distributing value...

Read More Group 7
April 06, 2020

Use this article as a guide to help you think in new ways to renegotiate for better contracts and stronger partnerships, whether in business or in life. Never be afraid of sitting down at the table to set new terms...

Read More Group 7
January 12, 2020

Happy Holidays to you and yours! Chances are very good that you had to negotiate with at least a few people to figure out what your holiday plans would be this holiday season, and chances are good that it didn’t all go perfectly smoothly. If you are all still on speaking terms, that’s probably because you utilized some of your best conflict resolution tools...

Read More Group 7