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This article will not just help you to smartly improve your negotiations in setting prices, making sales and increasing your salary. Negotiating what you want is a basic skill that you will need in nearly everything in your life.
Consider this for even a stay at home mother; her son will either adopt the ethical values that she’s trying to teach him or the bad ones that his cool friends are introducing to him depending on who’s a better negotiator.
While negotiation is a big topic, the following information and advice will be an eye opener to how you will see negotiation forever.
Before we get into how we can get what we want, let’s have a look at how we tend to measure things before we negotiate. Ever heard a song that you used to hear a long time ago, and you suddenly experienced the emotions that you used to feel during that time?
Ever smelled a certain perfume that you used to smell before and again you suddenly experienced the emotions that you used to feel during that time?
Remember when you and your friends got into a very funny situation and you associated it to a word, and whenever you mentioned this word you burst out laughing?
What about coming back to your old school or a place that you haven’t been to for a long while?
How does it feel?
Exactly. What you experience is called an Emotional Anchor, where something is a stimulus that influences your state of mind.
Very interesting, let’s continue.
This introduction about anchoring will lead us to having a look at how we measure the things around us. If we all and everything around us increased 100 times in size tomorrow, we’ll never find out.
The reason is that we have anchored the way we measure everything in proportion to the things around us. The things that we measure with around us will have also increased in size.
We anchor everything we experience in relation to what is around us. Meaning we also measure what we expect in comparison to what we believe it should be compared to – anchored to. This means that when you tilt the natural anchor that goes in different situations, you get a different result.
It is very interesting when you look at how we measure things in life. Let’s take seasonal sales at shopping stores as an example.
You could easily watch a pair of shoes for 100 dollars in a shop on a normal day and think that it’s very expensive. If you had however seen it in a different context, with a price tag that had a cross over 400 dollars during the sales season and 100 dollars written underneath instead, the way you would’ve viewed it would have differed. Now you view it an opportunity.
So the way we are being introduced to things sets the initial limit to where we’ll initially start to bargain. This is why it is advised to set bigger goals in general and not small ones if you want to make great achievements and success.
Many people believe that it’s better to wait and see what the other person has to offer and then maneuver from there. While this is sometimes a good strategy, it really depends on the situation, because you could lose a lot not taking it the other way round.
When you start the negotiation, you set an “anchor” to what their minds should expect of the situation. In situations where you’re negotiating your salary for example, contrary to what many people say it may actually be a good idea for you to start first.
Of course you can’t change the price if for example you’re buying a car, with car prices already set (anchored) everywhere. But you can definitely set an anchor to the expectations of the advantages you’ll get with the car or the discount for buying it.
So when do you use this sort of strategy then exactly? When you are in a place where there will be some sort of middle ground as you both check to see who’s expecting what. In this case make sure you are first to set the anchor to the expectations. This way if it goes down or up it is still within a range that you can bare and you can get a deal that you want.
I have managed to become a self made millionaire at the age of 28. This didn't happen by chance because i already wrote that goal down five years before i accomplished it. Becoming rich is not about luck, starting big or being intelligent but its all about having certain beliefs about money and life.
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