Brutally Effective Negotiation Tactics

Summary

• Negotiate with Alternatives in Mind: Always have a strong alternative (BATNA) before entering a negotiation. This gives you leverage and helps you decide whether a deal is beneficial.

• Anchor First in Negotiations: Set the initial offer in discussions to establish an anchor. If you’re buying or selling, say a number first to influence the negotiation dynamics.

• Counter-Offer Wisely: When countering an offer, adjust not only the price but also the terms to retain value while making it seem like you’re conceding.

• Present Multiple Offers: Provide two or three equivalent options with different terms to understand the other party’s priorities better and find mutually beneficial solutions.

• Leverage Reciprocity: Use reciprocity to offer small concessions and encourage the other party to reciprocate, aiming for strategic exchanges that maintain your position.

• Think in Multiple Terms: Break down the offer into various factors like speed, risk, and ease. This gives you more variables to adjust during negotiations.

• Frame Deals as Investments: Whether speaking to employers or clients, present your service or role as an investment rather than a cost to shift perception.

• Use Supporting Data: Have relevant data ready to support your framing, especially when making financial arguments, to make your case more compelling.

• Adjust Tactics for Culture: Be mindful of cultural differences in reciprocity and negotiation styles to avoid unintentional misunderstandings.

• Strive for Win-Win Solutions: Remember that the best negotiations are not zero-sum games. Align the most important needs of each party for better outcomes.

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How To Take Action

I would suggest implementing the idea of having a solid backup plan, or BATNA. Before any negotiation, whether it's with employees, vendors, or partners, know what your best alternative is if the deal doesn't work out. This gives you confidence and leverage. Think of it as having a Plan B that you're perfectly happy with. For example, if negotiating a salary, have other job offers or roles you could accept. That way, you don't have to settle for less than you deserve.

A good way of anchoring first in negotiations is to set the initial offer. Be the one to say the first number in a negotiation, which can help control the conversation. Practice saying your offer confidently and remember to aim higher than what you expect to achieve. It's better to negotiate down to a win-win result, rather than leaving potential gains untapped.

When making counter-offers, adjust both the price and the terms. Don't focus solely on numbers. For example, if you’re negotiating a purchase, consider other factors such as delivery speed or payment terms. This flexibility can help you retain value while giving the impression of compromise.

Try presenting multiple offers to better understand what the other party values. Offering different combinations of price points and terms can reveal what aspects are most important to the other party. That way, you can negotiate for mutually beneficial solutions.

Lastly, always frame deals as investments. Show how your role, product, or service brings a return, rather than just being a cost. Use data to support your positioning when possible, highlighting potential benefits to their outcomes.

Quotes

"You have to negotiate and you get what you negotiate not what you deserve"

– Alex Hormozi

"If you have other offers there's two different ways of thinking about this"

– Alex Hormozi

"Anchoring as high as possible completely shifts the whole negotiation"

– Alex Hormozi

"You only want to sell when you don't want to sell"

– Alex Hormozi

"Framing something as an investment, not a cost, can change the entire conversation"

– Alex Hormozi