Power of Rewards
Hello Good Negotiators
I don't hear the phrase "carrot and the stick" as much as I used too. I can't say that I know what is now being said in its place, but the principle still holds. Dangling an incentive (the carrot) in front of another party (the mule) will typically prompt them to move, and do so in the direction we want.
Power of Rewards
Good negotiators have long known that an incentive, a reward or a 'deal sweetener' can often put a deal together.
Any parent has use the Power of Rewards. "Eat your vegetables and you can have a cookie." I won't comment upon the effectiveness of this strategy since our kids are much more skilled at negotiating than most of us.
But don't discount the power of offering a reward when negotiating a good deal in other arenas. It not only is that 'deal sweetener'
we mentioned before, it more importantly communicates that we recognize the perspective (needs, aspirations, concerns, pressure
points) of our opponent. Setting aside our self-interest priorities for a moment to consider how our counterpart might feel is often a game changer.
When it comes to employing the power of rewards,creativity and 'out of the box' thinking is typically required. Looking at a negotiation from your opponent's perspective can spawn proposals that might induce them to agree to a win-win deal.
1. I'll consider buying a larger quantity (reward...more volume) if you can give me a 10% discount.
2. If you can do if for that price, I'll recommend you to my friends and even write a testimonial letter for your promotional use. (reward...more business)
3. I'd consider purchasing some of your other products (reward...more sales) if you can help me on this order.
4. Could you agree to this price if I pay cash? (reward....no credit card fees)
5. I can reduce my price on this order (reward) if you'll pick this up at our warehouse by Friday.
Or ask your opponent what reward they would value.
6. What can I do (they suggest a reward) to get a better price on this?
You are likely more creative than me when it comes to identifying rewards. Coming up with incentives becomes easier when you concentrate your efforts and thinking in that direction.
What are the possibilities in your negotiating circumstances?
What inexpensive thing could you give up (reward) that would convert your opponent's hesitancy into action?
Good negotiators recognize the trade off possibilities when offering incentives or rewards. Recognizing the perspectives of others always proves beneficial as we KEEP Negotiating.
Negotiating Tip 114: Retreat Negotiations
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Negotiating Tip 113: Activating Our Opponent
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Negotiating Tip 112: Misconceptions
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