The Negotiation Book: Your Definitive Guide To Successful Negotiating

4.8. 8. NUMERICAL REASONING:

Know what it's really worth, know what it really costs

Numerical reasoning allows you to consider more easily the 'what ifs?'; to respond to proposals using logic and mental agility when analysing the value of options. Your ability to engineer value literally by performing quick calculations allows you to expose opportunities that could otherwise be dismissed. This involves linking the value of a risk with the benefit of an opportunity by calculating the incremental upside before tabling the proposal. Although it's a good idea to prepare some proposals ahead of your meeting (following initial discussions), calculating counter proposals and providing alternative solutions during the negotiation with similar or even improved outcomes will come more naturally to those comfortable with numerical reasoning.

Unfortunately, for many, this is not the case. Using simple 'ready reckoners' to work out the financial implications of movement is one way of preparing yourself for this. For example, working out the implications of each 1% discount or one-week extension, or each 500 increase in unit volume requirements, and having this prepared on a spreadsheet can help you calculate quickly and respond to proposals with a clear understanding of the units and values involved.

CASE STUDY A friend of mine, a fitness fanatic, recently decided to buy himself a multi-gym so that he could work out at home. He conducted his research online and opted to buy a home multi-gym ...