Hi today’s sales thought of the day is all about negotiation, so I want to talk about a model called the Hackerman model.
Ackerman model is a method or a counteroffer method for negotiation.
It’s always good to have some type of plan.
We talked about processes and plans and how things go smoother when you have a plan.
So today, what I want to do is describe the six steps that are involved with this and then we’ll use an example.
So, first I’ll give you the six steps step number one is set your target price, so whatever say, for instance, were this buyer or the seller we’re going to set our target price where we finally ultimately want to be step? Number two: is you set the first offer at 65 % of the target price.
So again, if we’re buying something we’re gon na, maybe want to buy it for X amount, then we’re going to 65 percent of that would be our first initial offer and then we’re going to calculate 3 raises in decreasing increments or increasing degree increments, depending with Gendron.
So in decreasing increments we’re going to go 85 percent of our target price will actually go up to 95 percent of our target price, and then we walk to a hundred percent if we’re on the buying end of it number four step.
Four is use a lot of empathy and a lot of different ways to say no, so you can just say.
No sorry! No, however, after you keep saying that it’s nice to say something a little different, so you might just say I’m sorry, I’m afraid that just won’t work for me.
Another way to say it is I’m sorry.
I just can’t do that.
I’m sorry I’m afraid I just can’t do that.
I’m sorry now so different ways to say no, the key is being very, very non-threatening, being very differential or respectful in your negotiation with this person they’re, not crazy, they’re, not asking too much.
None of that we’re just gon na say no.
Let them negotiate with herself a little bit number five step number five, when you’re calculating that final number, usually a kind of a precise, odd number, so nine dollars and seventy seven cents, one thousand dollars 74 cents.
Something to that nature and then step number six is on that final number, through a non-monetary item, to show that you’re really at your limit.
So in the car business a lot of times, we will say: look we’re all the way down on the price.
I can give you an oil change for take a gas and a couple car washes now.
I met my limit and that lets them see that you really have no more monetary dollars to give you’re just down to the last few things that you offer as some items that maybe you can give to them.
So so, let’s pretend that we’re buying this little trinket from a souvenir shop on vacation and it’s they’re, asking 15 dollars for this little statue and we’d like to buy us a 4/5 excuse me ten dollars, so we’re gon na set our first target price at ten Dollars is our target price and our first offer is going to be 65 percent of that target price.
So we’re going to say you don’t want to tell you what I’ll give you six dollars and fifty cents for they say.
Nope can’t do that we’ll do it for 13.
You say: I’m sorry that just won’t work for me shut up, let them counteroffer.
They may say you know: what can you come up a little and maybe they’ll come down a little bit and maybe they’ll get to say twelve dollars, and then we maybe at some point we decided we’ll come up to 850 because that’s again, 85 percent of our Target price and then our next off it would be $ 9.
50 and then our final offer would be the $ 10.
00 target price.
Now, because we want to make it kind of an odd number, make it dramatic and let it appear to be very precise might be a great ideas if you had 90 cents in your pocket and seven pennies yeah.
So look, I know I got $ 9.
That’s close to ten and you count everything out and make it a little dramatic if you’re out there on the other end of it, to show that you’re at your limits.
What you might do is say I’ll.
Tell you what I can’t do ten dollars, but I can’t do eleven dollars and I’ll give you the polishing rag to make.
This look would look shiny and new, so that’s how it work on the other end.
So again, it’s the Ackermann model.
It’s a offer.
Counteroffer method for negotiation, it’s great to have a plan.
A lot of you probably do some variation of this, and maybe just haven’t ever thought it out like that.
But it’s a great method worked very good, whether you’re buying a trinket in Mexico buying a house selling the house vehicles.
Anything like that.
A great method and a great thing to have in your hip pocket again always good to have a process all right.