There are literally dozens of traps associated with small business owners entering into negotiations with “big players.” But let’s face it, these days there are many small business owners and entrepreneurs being approached by large companies. So how can you know when to decline entering into negotiations? How can you defeat the common negotiating strategies used by big players to win concessions from small business owners?
David Wanetick, Managing Director of IncreMental Advantage, is our featured guest in this Episode of The Small Business Trends Radio. David will share tips and tactics to defeat the strategies used by the “big boys” against small companies to seduce them and he will explain how to successfully enter into negotiations with them.
Here’s a sampling from the show:
- Common negotiating tactics — such as good cop, bad cop, limited authority and exploding offers will be used. One representative is agreeable while another is aggressive, the representative claims to not have the authority to make final decisions or the company begins to force tight deadline decisions to be made which is a sign of a large company in need – and also in a weak position.
- Three reasons why entrepreneurs — do not make good negotiators are 1.) they are emotionally attached to their business and easily seduced 2.) they are not available to enter into lengthy negotiations that will monopolize all of their time 3.) they have full authority and do not have the benefit of input or foresight from others. Many are also likely to entertain each and every approach by a large company while sharing confidential, valuable information which can be damaging. You must safeguard your proprietary information against competitors and big boy “fishing expeditions” for information.
- Seemingly off-hand remarks — during breaks can undermine your negotiating position or nix a deal. Such as stating that you were not able to bring necessary documentation because there was a recent incident with a roof leak.
- Put your first offer — out on the table so as to maximize getting the price you want by making the initial opening offer and using the psychological tactic of “anchoring.” The higher the number initially spoken, the closer to it the closing price will be.
Think you’re ready to run with the “big dogs?” Ever heard of the Pygmalion effect? You can use it. Learn how by listening to David’s full interview by clicking the red and yellow player below.
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