Imagine that you have been offered a contract to write
a book in your special field. You are confident. You
have already written a book, so you are experienced
and you and the publishing company both know you can
publishing company offers you $18,000.
WILL YOU NEGOTIATE?
1. What do you want?
You want $25,000.
2. What are you willing to compromise?
You would consider taking $15,000 plus an ongoing
percentage of sales. However, if they won't give you
a percentage of sales, you won't go below $25,000.
3. What can you afford to lose?
You will lose some cash in hand for the promise of
a percentage of sales.
4. What is your bottom line?
If they won't give you $25,000 and they won't give
you $15,000 and a percentage of sales, you will walk
away from the contract.
One common negotiating technique is an ambit
claim. For example in the situation
above the publisher may offer $15,000 but they are
really prepared to go higher. You may want $25,000,
but you ask for $32,000 and you are prepared to go
lower! You negotiate and you reach agreement somewhere
in the middle. In the end you are both happy and both
feel that you did well in the negotiation!
' In business, you don't get what you deserve, you
get what you negotiate!'
What do you think?
Is this statement true?