How to negotiate effectively

Negotiating with someone means bargaining or trading to get what you want while at the same time giving the other person what he wants. This may sound easy, but unless you follow a few rules, things will not go very well for you, and you’ll give more than you get. Think of negotiating as a game that you can win because you have learned the rules. Using these rules, you have a better chance of getting what you want. Here they are:

Rule 1:

Before you start the process, do some research online to find out what a reasonable price for the item is. If you are selling, you want to start your negotiation at a price above that; if you’re buying, you want to start at a price below that. Let me explain by using an example.  You want to sell your used smartphone.  If you determine that a used smart phone is worth $200, then you want to ask $250 for it.  Someone would love to buy it from you for $150.  If you asked for only $200, which is the real price you’re willing to sell it for, the other person would still only offer you $150, knowing that you would come down a little to meet his offer. You would then probably sell it for around $175, which is not what you want. You need to give yourself some “wiggle room” and ask for more than you’re willing to take.

Rule 2:

Get the other person to tell you his opening price first.  This gives you an advantage because you now know his starting position before he knows yours.  If his number is $50 lower than you want, then counter his offer with a price that’s $50 higher than you want.  He says, “I’ll give you $150 for the phone.”  You look dissatisfied, and after pausing for five seconds, you say, “I can’t do that.  I’ll give it to you for $250.”  Looking dissatisfied is a major part of negotiating.  The more dissatisfied you look, the higher the other person will make his second offer.

Rule 3:

When the other person comes up in his counter offer, you come down by the same amount. Continuing with our example, he now says, “Well, I could come up another $25. How about $175?”   You counter by looking disappointed again, and then say, “I could come down to $225, but that’s as low as I’m willing to go. By saying this last part, you’re telling him that the negotiations are getting tougher, and you’re not going to come down much more.  If he’s not an experienced negotiator, he may agree to pay your price of $225. However, if he understands that the negotiation isn’t finished yet, he’ll suggest “splitting the difference.” He’ll say, “I’ll tell you what. Let’s split the difference, and we’ll both be happy.” At that point you can agree to sell the phone at $200.

Rule 4:

If he doesn’t seem willing to split the difference, then you can offer a little something extra to make him feel like he’s getting a good deal.  You could say, “I’d be willing to throw in the phone case if you’ll agree to $200.” Often, this is enough to seal the deal.

Rule 5:

If there’s a long silence in the negotiation, do not say anything.  The first person who speaks is the person who’s willing to make a concession and meet the other person’s price.

Rule 6:

The last rule is that you can’t seem desperate to make a deal.  You must always look like you’re willing to walk away with no deal.  Sometimes if you’re not happy with the price, walking away is the only thing you can do.

So there are the six simple rules that you can use the next time you negotiate with someone.   Of course, practice makes perfect, so go out into the world and practice this process until you get good at it.  Being a good negotiator will save you or make you lots of money in a short time.

Click on the audio recording below to hear the above lesson.

Vocabulary:

bargaining: the process of agreeing on a price.
process: the steps you take to do something
reasonable: correct for both buying and selling
item: the thing that is being sold.
determine: decide through research
wiggle room: room to move up or down
advantage:  opportunity for success that the other person doesn’t have
counter: say your price in response to his price
dissatisfied: not happy
tougher: harder
splitting the difference: going half way between his price and yours
throw in: include
seal:  successfully conclude
concession: a thing that is given up
desperate: having an urgent need
deal: agreement

Pronunciation Exercise:  Listen and repeat the vocabulary above on the audio file below.

© 2014 Ambien Malecot

Lecture (Level 2) – The single biggest reason why startups succeed

by Bill Gross

an American businessman who serves as Chairman of the Board and Chief Executive Officer of Idealab, a company that creates companies.   He is a member of the Board of Trustees of the California Institute of Technology.

First, preview the vocabulary below.  Then click the exercise below, read a question and then listen for the answer.  When you hear the answer, pause the video and answer the question.  Then read the next question and do the same thing. 

Your Score:  

Your Ranking:  

Vocabulary:

factors:  reasons
startup:  a new company
human potential:  What’s possible for a person to achieve
systematic:  with a plan so nothing is forgotten
instincts:  feelings
misperceptions:  wrong beliefs
execution:  doing the job
punched:  hit with a fist
adapt:  change in response to something happening
revenues:  money from sales
funding:  money from others to get a company started
timing:  the correct time to start something new
competitors:  other companies selling the same thing
attributes:  good qualities
definitive:  the correct answer
gaining traction:  becoming more successful
recession:  bad economic period
revenues:  money coming in
© 2014 Ambien Malecot

 

Lecture (Level 3) – Let’s use video to reinvent education

by Salman Khan
the founder and faculty of the Khan Academy (www.khanacademy.org), a not-for-profit organization with the mission of providing a free world-class education to anyone, anywhere.  He holds an MBA from Harvard Business School, an M.Eng and B.S. in electrical engineering and computer science from MIT, and a B.S. in mathematics from MIT.

First preview the vocabulary below.  Then do the exercise by first reading a single question and then listening for the answer.  When you hear the answer, pause the video and answer the question.  Then read the next question and do the same thing.  If you get the answer wrong, then go back to where the answer is given and listen again.

Your Score:  

Your Ranking:  

Vocabulary:

montage:  series of pictures
blow your mind:  give you great joy
remotely:  from a distance
feedback:  saying what’s good and what’s bad
profound:  important
automated version:  recorded video
notion:  idea
concept:  idea
viewership:  people who watch
dawned on me:  was realized or understand by me
supplement:  addition to a person’s learning
home schoolers:  students who are educated at home
one size fits all:  every student does the same thing
humanize:  make more gentle and kind
primitive:  simple
paradigm:  model, pattern
analogous to:  similar to
unicycle:  a one-wheeled bicycle
mastery:  being able to do something well
gutted:  threw away, got rid of
proficient:  able to do it
data:  Information
diagnose:  figure out, find out
grandiose:  including everything
self-paced learning:  learning at the speed of each student
gifted:  smart, intelligent
remediate:  learn things you should have already learned
peer:  student
merit badges:  indications of success
leaderboards:  lists of the top students
collaboration:  working together
radical:  so very different

© 2014 Ambien Malecot

Talk (Level 1) – Success secrets for Canadian immigrants

by Nick Noorani

a well-known authority on the successful integration of immigrants in Canada.  He’s originally from Mumbai, India.  His book, Arrival Survival Canada, is a best seller among immigrants to this country.

 

First, preview the vocabulary below.  Then click the exercise below, read a question and then listen for the answer.  When you hear the answer, pause the video and answer the question.  Then read the next question and do the same thing.  If you get the answer wrong, then go back to where the answer is given and listen again.

Your Score:  

Your Ranking:  

Vocabulary:

founder:  the person who starts an organization or business
author:  writer
resources:  the things that are necessary
guide:  source of information
flip burgers:  have a low paying job
faced with:  have something in front of you
my take:  my understanding
gleaned from:  learned from
qualified:  able to do the job
invaluable:  very expensive
value:  importance
brushing up: practicing, learning (idiom)
skills: abilities
embrace:  take into your heart
resume:  information about yourself that helps you get a job
take a deep breath:  relax (idiom)
positive:  hopeful for a better future
been there:  I’ve had that same experience (idiom)
sociable:  friendly
network:  large group of people you know and who they know
negativity:  hopelessness
risks:  things that you’re afraid to do
play safe:  not take any risks (idiom)
volunteering:  working for no money

© 2014 Ambien Malecot

Lecture (Level 2) – All it takes is 10 mindful minutes

by Andy Puddicombe

a former Buddhist monk with a degree in Circus Arts.  He is the founder of Headspace, an award-winning digital health platform that provides guided meditation sessions for its users.  As both author and public speaker, Puddicombe is known for his simple, accessible and secular approach, which has led to over 1 million users of the Headspace platform.

First preview the vocabulary below.  Then do the exercise by first reading a single question and then listening for the answer.  When you hear the answer, pause the video and answer the question.  Then read the next question and do the same thing.  If you get the answer wrong, then go back to where the answer is given and listen again.

Your Score:  

Your Ranking:  

Vocabulary:

frantic:  too busy
reminiscing:  remembering
precious:  of high value
distracted:  having your attention go to something else
assumes:  thinks he has the right answer without all the evidence
meditation:  a practice of letting your mind be calm
whole deal:  everything
succession:  things happening one after the other
inundated:  flooded, having too many or too much
monk:  a person who devotes his life to understanding God
tragic:  resulting in something very bad
technique:  a way of doing something
impacts:  affects, changes
anxious:  worried
wobbly:  moving a little back and forth
restless:   not being able to relax
agitated:  disturbed, made uncomfortable
perspective:  the way you look at something
potential:  possibility

© 2014 Ambien Malecot

 

Lecture (Level 2) – To hear this music you have to be there. Literally

by Ryan Holladay

an American artist and, with his brother Hays, co- founder of Bluebrain, a music and technology duo who create site-specific sound.

 

First preview the vocabulary below.  Then do the exercise by first reading a single question and then listening for the answer.  When you hear the answer, pause the video and answer the question.  Then read the next question and do the same thing.  If you get the answer wrong, then go back to where the answer is given and listen again.

Your Score:  

Your Ranking:  

Vocabulary:

familiar:  like you’ve seen it before
convey:  show you
specifically:  only
intersect:  come together
composition:  piece of music
gallery:  a store that displays art
dialog:  close relationship
exclusively:  only
mobile app:  a computer program for your smart phone
GPS:  technology that locates your position on earth
traverses:  crosses
landscape:  park
seemlessly:  smoothly
trajectory:  walking direction
perimeter:  border, boundary
intrinsic:  a necessary part of
currently:  these present days, now
bells and whistles:  fancy technology

© 2014 Ambien Malecot

 

Lecture (Level 1) – Aimee Mullins’s legs

Aimee Mullins learned to walk on artificial legs and then run.  She broke records at the Paralympic Games in 1996.   She is a model, actor, and supporter of women and sports.

 

 

First preview the vocabulary below.  Then do the exercise by first reading a single question and then listening for the answer.  When you hear the answer, pause the video and answer the question.  Then read the next question and do the same thing.  If you get the answer wrong, then go back to where the answer is given and listen again.

Your Score:  

Your Ranking:  

Vocabulary:

curious:  wanting to know
influences:  teaches indirectly
unruly:  without order, too excited
disabled:  unable to do normal things like walking
potential:  possibilities
attendees:  people who attend a conference
decade:  a period of ten years
form:  the shape of something
function:  what something does
aesthetics:  the beauty of something
numerous:  a large number, many
prosthetic:  an artificial body part
stunning:  very beautiful
transform:  change
polyurethane: a kind of plastic
door jams:  the top of doors
profoundly: very much
augmentation:  becoming better than normal

© 2014 Ambien Malecot