A simple model to help you locate the added value

Good preparation is extremely important in your search for added value. Very often we see negotiators making the following preparations when making an offer:

The Offer

  • How are we going to submit and explain our offer?

  • What questions and objections are the other party likely to put forward?

  • What terms, conditions and price should we open with?

  • Where is the pain threshold?

If your opening price is $118,000 and the pain threshold is $103,000 then the room for negotiation is $15,000.

The aim of the negotiation is often defined as: The point is to get the deal, but at the same time we should give away as little as possible of the $15,000.

If you formulate your objective in this manner, you see the negotiation ...

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