The Key to Successful Negotiating

In this article on how to get rich, I found a very useful comment:

I absolutely promise you, in every serious negotiation, the man or woman who doesn't care is going to win.

I couldn't have said it better myself.

What he's really talking about is "walk away power" -- the ability of the potential buyer to simply walk away from the deal if it's not good enough. If you literally don't care about a deal/sale/whatever (or at least don't care so much that you HAVE to do the deal), you have a great advantage in negotiating terms, price, and so on.

So, how does this work in practical application? Here are a few examples:

• If you're willing to walk away from buying a car, you can get a great deal (worked for me TWICE within a six-month period in 2004 when I bought two cars).

• If you're willing to walk away, asking for a discount is much, much easier (check out how this works when negotiating cable rates).

• If you're willing to take/find a new job, it makes it way easier to get a raise (though you have to be careful with this one -- you don't want to appear to be holding them for ransom).

• For us, this is also playing out in the housing market as we look for a new home. Since we're emotionally detached during the buying experience, we have a great advantage when it comes to dictating price (though it hasn't gotten us that far yet.) :-)

How about you? Have you ever saved a ton by simply being willing to walk away from a deal?

Comments

[Mr. ToughMoneyLove]

I have also walked away from deals where the other side attempted to force me to negotiate against myself, e.g., car dealers and home sellers who would reject my offers without countering them. I simply will not put up with that tactic.

[thomas]

I have a great story about "walking away" power involving a bank and them not letting my wife cash a check. Long story short - You'd be amazed at what a bank manager will do when you ask for 20k cash on a payday Friday :0

The only thing to consider is will you be able to walk away? Talk is cheap.

[Laura M]

This is so true. We are closing on our new (and first) home in less than two weeks. We are getting a fantastic deal and in big part to us choosing our price and telling the seller's that they either "take it or leave it" and that we'll walk away if they don't take it. Worked out perfectly for us and we couldn't be happier!!

[fathersez]

I agree completely. If we are not in a position to walk away, then we start from a position of weakness.

The best we would be able to do is to make the best out of it.

Another thing you also need is time. Negotiating in a hurry is a very bad idea.

Regards