MODULE 7

🤝 Negotiation & Deal Making

Win-Win Strategies for Success

📖 The ₹10 Lakh Salary Negotiation

Scenario: Rohan was offered ₹12 lakhs but wanted ₹15 lakhs.

Weak Negotiation (Asking): "I want ₹15 lakhs." Result: "Best we can do is ₹12.5 lakhs."

Strong Negotiation (Persuasion):

"I'm very excited about this role. Based on my 8 years of experience, my track record of increasing revenue by 40%, and market research showing similar roles pay ₹14-16 lakhs, I believe ₹15 lakhs is fair. However, I'm flexible. If we can't reach ₹15 lakhs now, could we discuss performance bonuses, stock options, or a review in 6 months?"

Result: ₹14 lakhs base + ₹2 lakhs performance bonus + review in 6 months = Effectively ₹16 lakhs! 🎯

🎯 The Golden Rules of Negotiation

1. Always Aim for Win-Win

Both sides should feel good about the outcome. This builds long-term relationships.

2. Do Your Homework

Research market rates, the other party's needs, alternatives, and constraints.

3. Have a BATNA

Best Alternative To Negotiated Agreement. What will you do if negotiation fails? Having options gives you confidence!

Strategy 1: The Anchoring Technique

Concept: The first number mentioned sets the "anchor" for the entire negotiation.

How to use it:

• If selling: Start higher than your target (they'll negotiate down)

• If buying: Start lower than you're willing to pay (they'll negotiate up)

• If unsure: Let them make the first offer, then anchor higher/lower

💼 Anchoring in Action:

Project Pricing Negotiation:

Vendor: "This project will cost ₹50 lakhs."

Smart Response: "That's significantly higher than the ₹30 lakhs budget we allocated based on similar projects. Can we discuss how to bring this to ₹35 lakhs?"

By anchoring at ₹30 lakhs, you moved the negotiation zone down. Final price: ₹40 lakhs instead of ₹50 lakhs!

Strategy 2: The Concession Pattern

Concept: Make smaller concessions each time. This signals you're reaching your limit.

Example Pattern:

Your first offer: ₹100

First concession: Drop to ₹95 (5% reduction)

Second concession: Drop to ₹92 (3% reduction)

Third concession: Drop to ₹90 (2% reduction)

The decreasing pattern signals "I'm close to my limit."

Strategy 3: "If... Then..." Framework

Never give something without getting something!

Examples:

• "If you can commit to a 2-year contract, then I can offer a 15% discount."

• "If we agree on ₹12 lakhs salary, then can we discuss flexible work hours?"

• "If you increase the deadline by 2 weeks, then I can reduce the cost by 10%."

Strategy 4: The Power of Silence

After making your offer... STOP TALKING!

Most people feel uncomfortable with silence and rush to fill it. Often, this leads them to negotiate against themselves!

Example:

You: "My consulting rate is ₹5,000 per hour."

[SILENCE - Don't explain, justify, or backtrack]

Client: "Um... that's... okay, we can work with that."

🎯 Specific Negotiation Scenarios

Salary Negotiation Framework:

1. Express enthusiasm first ("I'm excited about this role!")

2. Present your research ("Market rate for similar roles is...")

3. Show your value ("I bring X years experience and Y achievements...")

4. State your expectation ("Based on this, I was expecting ₹X")

5. Stay flexible ("I'm open to discussing total compensation including...")

6. Get it in writing ("Can we formalize this agreement?")

Vendor Negotiation Framework:

1. Get multiple quotes (Competition = Leverage)

2. Ask "Is this your best price?" (Simple but effective!)

3. Bundle items ("If I order X and Y together...")

4. Negotiate payment terms (Not just price!)

5. Request add-ons ("Can you include installation/training?")

💼 Real Example: Software Purchase Negotiation

Initial offer: ₹10 lakhs for software license

Smart Negotiation:

"We're interested, but three things concern us: 1) Price is 20% above market average, 2) No training included, 3) Payment upfront. Here's what would work: ₹8 lakhs with free training and implementation support, paid in 3 installments over 6 months. If you agree, we can sign today."

Final Deal: ₹8.5 lakhs + free training + quarterly payments. Both sides happy! 🎉

🎁 Negotiation Mastery Principles