Learn How to Source’s provider of Negotiation tips is Dave Barr, The Real Life Buyer, and he has been a Purchasing Professional for over 20 years. It is now with this knowledge and experience that Dave feel compelled to share with others. He want YOU to spend your own, or your company’s money, wisely and safely. He will do his best to help and support you on your purchasing and spending journey and he welcome your support and encouragement in this venture.

If you are looking to Save Money and Buy Smart, then look no further. The Real Life Buyer Podcast are among the top Podcasts in the UK in its genre.

In the course Dave gives tips about bracketing and walking away, about asking difficult questions, about always managing the relationship, about knowing your interests and what to give and not to give away, in short about hands-on negotiation methods. Make Dave’s experience your knowledge.

Access the course Real Life Buyer Negotiation tips and keep your eyes open because there are plenty more experience for Dave to share.

Besides being active as a procurement professional and riding motorbikes (Harley-Davidson), Dave is the founder of a successful podcast.

Negotiation tips on Bracketing:

Bracketing is a strategic technique used in negotiation to establish a range within which parties aim to settle an agreement. This range, often referred to as the “bracket,” represents the boundaries of acceptable terms and conditions for both parties involved. The concept of bracketing is grounded in the principle that providing a clear, defined range can facilitate more efficient and effective negotiations by narrowing the focus to a mutually acceptable zone.

How Bracketing Works

1. Establishing Initial Positions: Both parties begin by presenting their initial offers. These offers often represent their best-case scenarios, which are usually far apart.
2. Defining the Bracket: Through a series of counteroffers and discussions, both parties attempt to identify a realistic range where they can potentially agree. This involves each party making concessions and moving their offers closer to the center of the bracket.
3. Negotiating Within the Bracket: Once the bracket is established, negotiations become more focused and structured, as both parties work within this agreed range to finalize the details of the agreement.

Benefits of Bracketing

• Clarity: Bracketing helps clarify the expectations and limits of both parties, reducing misunderstandings and miscommunications.
• Efficiency: By narrowing the negotiation scope, parties can avoid protracted discussions and focus on finding common ground within the established range.
• Focus: It allows negotiators to concentrate on specific terms and conditions that fall within the bracket, making it easier to identify viable compromises.

Example

If a seller proposes a price of $100,000 for a service and the buyer counters with $60,000, they might agree to bracket the negotiation between $70,000 and $90,000. Both parties then focus their efforts on reaching an agreement within this range.

Conclusion Bracketing

Bracketing is a valuable negotiation technique that can streamline the negotiation process, foster mutual understanding, and facilitate quicker agreements. By defining a realistic range early on, both parties can work more effectively towards a mutually beneficial outcome.

Negotiation and Bidding: Move Your Price in Small Steps

Negotiation and bidding are fundamental processes in many business transactions, where parties seek to agree on terms that are mutually beneficial. One effective strategy within these processes is to move your price in small steps, rather than making large concessions or mirroring the seller’s offers.

The Strategy of Small Steps

1. Gradual Concessions: When negotiating, it is often advantageous to adjust your price incrementally. This approach demonstrates a commitment to your initial offer and signals to the other party that significant concessions will not be made easily. Gradual steps help maintain perceived value and avoid giving away too much too soon.
2. Non-Mirroring Adjustments: Instead of mirroring the seller’s price movements, which can quickly escalate to undesired price points, moving in small, controlled steps allows you to steer the negotiation towards your desired outcome. This strategy puts pressure on the seller to make more significant concessions if they want to close the deal.

Benefits of Small Step Movements

• Control: By moving in small increments, you maintain greater control over the negotiation process, ensuring that you do not concede more than necessary.
• Perceived Value: Small steps help preserve the perceived value of your offer, as large concessions can suggest that your initial price was inflated or that you are desperate to close the deal.
• Strategic Flexibility: This approach provides flexibility, allowing you to gauge the seller’s response and adjust your strategy accordingly without committing to large changes.

Practical Application

Imagine you are negotiating the purchase of equipment listed at $50,000. If the seller offers a reduction to $47,000 and you counter with $46,500, this small step indicates willingness to negotiate without drastically lowering your position. If the seller moves to $46,000, you could then offer $45,750, continuing the small-step strategy until a mutually acceptable price is reached.

Conclusion Move Your Price in Small Steps

In negotiations, especially within a bidding context, moving your price in small steps rather than mirroring the seller’s offers can lead to more favorable outcomes. This approach maintains control, preserves value, and allows for strategic adjustments throughout the negotiation process.

Access the course Real Life Buyer Negotiation tips and get more negotiation tips.

Why The Real Life Buyer Podcast?

“The podcasts and interviews will help you supplement your knowledge and thinking on aspects and topics you may not have needed to consider before. The podcasts are interviews with knowledgeable experts in their sector. From Builders to Manufacturers, from HR Consultants to Structural Engineers. The aim of these interviews is to communicate in simple terms how to go about buying familiar products and services. What to ask, what to expect, when to ask, what to look for and how to prepare and close.“

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What is Learn How to Source?

Learn How to Source (LHTS) is an online platform based in Sweden, offering a range of procurement courses accessible globally. It serves as a community where procurement experts share their knowledge through online courses, designed for various experience levels from introductory to expert. Courses are concise, about 30 minutes each, and cover different aspects of procurement, tailored for different buyer roles. The courses focus on practical knowledge, presented by seasoned professionals, and include quizzes and certificates. They can be accessed from any device, emphasizing microlearning for flexibility and efficiency.

Note: Illustration to the blogpost “FREE: Negotiation tips by The Real Life Buyer” is the logo from podcast Real Life Buyer.